With the disclosure of the annual report gradually entering a climax, the cash dividends of A-share listed companies continue to become the focus of the market.
On March 23, 18 listed companies announced their cash dividend plans in their 2021 annual report. The amount of dividends to be paid by Maanshan Iron & Steel Company Limited(600808) and other three companies exceeded 1 billion yuan. According to the data, as of March 24, before the press release of the reporter, 452 A-share listed companies had disclosed the annual report of 2021, of which 335 planned cash dividends, accounting for 74%, and the total proposed cash dividends amounted to 178.3 billion yuan. In addition, the reporter of Securities Daily noted that at present, the scale of cash dividends proposed by Listed Companies in the banking industry has reached 35.8 billion yuan, far ahead of other industries.
3 companies with dividends exceeding 10 billion yuan
banking is the most generous
Compared with other forms of dividends, cash dividends of real gold and silver are more favored by investors.
Data show that among the 335 listed companies that plan to pay cash dividends, 34 companies intend to pay dividends of more than 1 billion yuan. Among them, China Merchants Bank Co.Ltd(600036) , Ping An Insurance (Group) Company Of China Ltd(601318) , China Telecom Corporation Limited(601728) 3 proposed dividend amounts exceed 10 billion yuan.
“Cash dividends of listed companies and direct cash dividends are one of the effective weights to attract long-term investment.” Yan Kaiwen, chief strategic analyst of Huaxin securities, said in an interview with the Securities Daily that from the perspective of traditional values, only companies with continuous cash dividends can have long-term investment value. In addition, dividends can also play an important role in boosting investor confidence and stabilizing market sentiment.
According to the reporter’s statistics, at present, the amount of dividends proposed by A-share listed banking companies has reached 35.8 billion yuan, accounting for 20% of the total disclosed cash dividends (178.3 billion yuan); In addition, listed companies in the non bank financial industry intend to pay dividends of 18.5 billion yuan, ranking second; Listed companies in the communications industry followed with a scale of 17.5 billion yuan.
“Being able to distribute cash on a large scale is usually the embodiment of a listed company’s good financial condition and sufficient cash flow, which means that the company is in good operating condition.” Chen Li, chief economist of Chuancai securities and director of the Research Institute, told the reporter of Securities Daily that banks, non bank financial and other industry companies are mature enterprises that are relatively stable and do not need to occupy too much cash for their own expansion. Therefore, profits are often used for dividends, and the amount of cash dividends is high.
According to Yan Kaiwen’s analysis, Bank Of China Limited(601988) industry is relatively mature and can maintain a certain profit margin. Meanwhile, the valuation of bank shares has been low for a long time and the dividend yield is high. For a long time, the dividend rate and dividend rate of financial companies have been relatively high, and their performance is generally stable, with the basis of long-term cash dividend.
Although the bank and non bank financial sectors plan to take the lead in the amount of dividends, from the perspective of the number of entities, the listed companies planning to implement cash dividends are more from the three major industries of Electronics (39), basic chemical industry (39) and medicine and Biology (38) (a total of 116).
Looking at the proposed cash dividends of Listed Companies in various industries, it is not difficult to find that good performance is the basis of generous dividends.
“Although China’s economy has faced certain pressure in recent years, the above three industries have developed rapidly and have outstanding profitability.” Wang Weijia, general manager of Beijing Sunshine Tianhong asset management company, told the reporter of Securities Daily that continuous cash dividends will help establish the market image of the company’s steady development and insisting on giving back to shareholders.
7 listed companies
cash dividend exceeds last year’s net profit
According to the data, in terms of the proportion of total cash dividends to the net profit of the year, among the 335 listed companies mentioned above, 61 proposed dividends accounted for more than 50%, of which 7 exceeded 100%, and the highest was about 210%.
From the perspective of industry distribution, a large proportion of dividend paying companies are generally scattered, mostly pharmaceutical and biological and light industrial manufacturing, with 8 and 7 companies respectively.
In this regard, Wang Weijia analyzed that the increasing demand for biomedicine in the past two years has brought relatively rich profits to light industries such as pharmaceutical production. In the future, with the gradual recovery of foreign supply chains, the growth rate of biomedicine and light industry is also expected to stabilize. This laid the foundation for the implementation of cash dividends by relevant listed companies.
Industry experts believe that although a large proportion of dividends is beneficial to investors, excessive dividends may not be a good thing. “Blind dividends and excessive dividends are often not conducive to the development of enterprises.” Chen Li also said that what needs to be encouraged is those cash dividends without affecting the normal operation of the company, which is also to prevent the disguised transfer of interests of individual major shareholders and protect the rights and interests of investors.
Wang Weijia also believes that for enterprises with strong growth, their development needs financial support. Excessive dividends, especially ultra-high proportion dividends, are not necessarily conducive to enterprises to increase R & D investment, expand production capacity and motivate the team.
