The disclosure of 2021 annual report is getting better and better. With the release of excellent “transcripts” one after another, the density and intensity of cash “red envelopes” distributed by listed companies have also reached a new high.
according to the statistics of the reporter of Shanghai Securities News, as of March 25, 196 Shanghai stock exchange companies have issued cash dividend plans for 2021 (including annual report, semi annual report, quarterly report, etc.)
In terms of dividend scale, 31 companies paid cash dividends of more than 1 billion yuan in 2021, and 7 companies including Ping An Insurance (Group) Company Of China Ltd(601318) , China Mobile and China Merchants Bank Co.Ltd(600036) ranked among the “ten billion list” of dividends.
The reporter noted that in previous years, the 10 billion high dividend “tycoons” were almost taken over by the families of financial stocks such as banks and venture capital, but China Telecom Corporation Limited(601728) , China Mobile returned to a successively and listed on the main board of Shanghai Stock Exchange, breaking this pattern and becoming the new tycoons on the “10 billion dividend list”.
Looking at the dividend proportion, 36 companies have a dividend rate (total annual cash dividend / net profit after returning to the mother) of more than 50%, accounting for nearly 70%, of which 7 companies have a dividend rate of more than 100%. Last May, Eastroc Beverage (Group) Co.Ltd(605499) listed the most “awesome”. first sold 1 billion 200 million yuan cash in the first year of listing, which almost broke the company’s net profit for 2021.
Although the peak of annual report disclosure in 2021 has not yet arrived, the cash dividend in Shanghai stock market has initially made a “good start”.
cash dividend “new tycoon” appears
Over the years, the ten billion level high dividend list is usually occupied by the “rich and powerful” financial stock families. In 2021, there are two familiar “new faces” – China Mobile, China Telecom Corporation Limited(601728) .
On March 24, China Mobile released its performance in 2021. The annual operating revenue reached 848.3 billion yuan, a year-on-year increase of 10.4%. The net profit attributable to the shareholders of the parent company was 115.9 billion yuan, a year-on-year increase of 7.5%, and the basic earnings per share was 5.66 yuan. The profitability continued to maintain the leading level of world-class operators.
With the support of steady performance, China Mobile, which was just listed on January 5 this year, paid cash in its first year of listing, which brightened people’s eyes.
The board of directors of the company suggested that the proportion of cash dividends (including cash dividends distributed in the medium term) of the company in the profits attributable to shareholders in 2021 should be 60%. The company plans to distribute to all shareholders a final dividend of HK $2.43 per share (including tax) for the year ended December 31, 2021, with a year-on-year increase of 38.0%. Together with the distributed interim dividend of HK $1.63 per share (including tax), the total annual dividend of 2021 is HK $4.06 per share (including tax), an increase of 23.4% over 2020. As of March 23, 2022, the total number of shares of the company was 21.363 billion, with a total planned final dividend of HK $51.912 billion (including tax), about 42.2 billion yuan.
How sincere is China Mobile’s cash dividend? The company further stated that in order to better feed back to shareholders and share development achievements, the company fully considered profitability, cash flow status and future development needs, the profits distributed in cash within three years from 2021 gradually increased to more than 70% of the profits attributable to shareholders of the company in that year, and strive to create greater value for shareholders.
On August 20, 2021, China Telecom Corporation Limited(601728) landed on the main board of Shanghai Stock Exchange and entered a new stage of development. In 2021, the company’s operating revenue was 434.2 billion yuan, a year-on-year increase of 11.3%, and the net profit attributable to the shareholders of the parent company was 25.952 billion yuan, a year-on-year increase of 24.4% China Telecom Corporation Limited(601728) listed in the first year, it not only gives good results, but also circles the powder with high dividend strength. The company plans to distribute dividends to all shareholders according to 60% of the net profit attributable to shareholders of 25.948 billion yuan, totaling 15.569 billion yuan.
Eastroc Beverage (Group) Co.Ltd(605499) , Xinjiang Daqo New Energy Co.Ltd(688303) .
In 2021, Eastroc Beverage (Group) Co.Ltd(605499) continued to lead the energy beverage track, and the company achieved a total operating revenue of 6.978 billion yuan, a year-on-year increase of 40.72%; The net profit was 1.193 billion yuan, a year-on-year increase of 46.9%. At the same time, the company plans to distribute RMB 15 (including tax) for every 10 shares to all shareholders, with a total cash dividend of RMB 600 million. In addition to the 600 million yuan implemented by the company, it is expected to pay out a total of 1.2 billion yuan in 2021, which has almost divided the profits of the company in the past year Eastroc Beverage (Group) Co.Ltd(605499) is not only a “new tycoon”, but also a “real tycoon”.
While Xinjiang Daqo New Energy Co.Ltd(688303) is one of the few companies currently receiving cash dividends from the science and technology innovation board , which implemented cash dividends in the first year of listing, which also shows the high growth of the company.
Benefiting from the shortage of silicon material market and the sharp rise of silicon material price and gross profit of the company, Xinjiang Daqo New Energy Co.Ltd(688303) 2021 achieved a net profit attributable to the parent company of 5.724 billion yuan, a year-on-year increase of 448.56%. Strong performance also injected confidence into high dividends. The company plans to “pay 6 yuan out of 10” and distribute a total cash dividend of 1.155 billion yuan, with a dividend rate of 20.18%.
At present, when the “four major banks” and “two barrels of oil” have not released the annual report and dividend plan, Ping An Insurance (Group) Company Of China Ltd(601318) with a total cash dividend of 43.171 billion yuan, it temporarily ranks first in the “ten billion list” of dividends.
these companies have a good tradition of high dividends
High dividend “upstarts” are worth pursuing, and high dividend “regular customers” are worth praising.
Foxconn Industrial Internet Co.Ltd(601138) , Wanhua Chemical Group Co.Ltd(600309) , Foshan Haitian Flavouring And Food Company Ltd(603288) and other listed companies with high dividend genes continue to provide stable returns to shareholders in the steady operation and development.
Foxconn Industrial Internet Co.Ltd(601138) not only has a fine tradition of high dividend, but also this dividend is very heroic. (for details, please refer to our previous report “A-share Xinhao: the proposed dividend is nearly 10 billion, and more than 40 billion is used for financial management!)
On March 23, Foxconn Industrial Internet Co.Ltd(601138) released the annual dividend plan for 2021, which plans to distribute cash dividends of 5 yuan (including tax) to all shareholders for every 10 shares, with a total dividend of nearly 10 billion yuan (about 9.918 billion yuan) (including tax), and a dividend rate of 49.56%. Since 2019, Foxconn Industrial Internet Co.Ltd(601138) has continued to practice high dividends, with cash dividends of 3.974 billion yuan, 4.967 billion yuan and 9.918 billion yuan respectively, and the scale of dividends has reached a new high.
Foshan Haitian Flavouring And Food Company Ltd(603288) in recent three years, the cash dividend rate has been maintained at about 50%. According to the annual report of 2021, the company plans to distribute a total cash dividend of 3.202 billion yuan to all shareholders, with a dividend rate of nearly 48%. From 2019 to 2020, the dividend rate of the company was 54.48% and 52.13% respectively.
Fuyao Glass Industry Group Co.Ltd(600660) is not only the “leader” of global automotive glass, but also the leader in high dividend. In 2021, the company plans to distribute a cash dividend of 10 yuan (including tax) to A-share shareholders and H-share shareholders for every 10 shares, with a total dividend of 2.61 billion yuan, with a dividend rate of 82.95%, reaching a new high. Looking back at the dividend situation in 2019 and 2020, the cash dividend rate of the company also remained at 64.91% and 75.26%.
Market analysts pointed out that blue chips and industry leaders have generally entered a period of mature and steady development, with good operating performance and rich capital accumulation. They not only have the strength of high dividends, but also have the confidence of high dividends. While focusing on the main business and improving the competitiveness of the real economy, these companies actively repay shareholders, so that the majority of small and medium-sized investors can share the benefits brought by economic development and the growth of listed companies, highlighting the responsibilities and responsibilities of big blue chips and industry leaders.
Shanghai stock exchange cash dividend normalization
In recent years, cash dividends have become a beautiful scenery in the A-share market, adding a lot of luster to the high-quality development of listed companies. Shanghai stock exchange companies dominated by blue chips are the “main force” of high dividends, which has promoted the normalization of cash dividends into a new era. On the whole, cash dividends of Shanghai stock exchange companies show four characteristics.
first, the number of cash dividend companies in Shanghai stock market continued to increase
According to the data, 902 listed companies in Shanghai stock market implemented cash dividends in 2016 and 1432 listed companies in Shanghai stock market implemented cash dividends in 2020, with an average annual growth rate of 12.2%. At the same time, the proportion of listed companies with cash dividends has also increased, from 87.9% in 2016 to 91.6% in 2020.
second, the total cash dividends of Companies in Shanghai stock market increased steadily
In 2016, the total cash dividend of Shanghai stock exchange companies was 771.1 billion yuan, and in 2020, the total cash dividend of Shanghai Stock Exchange reached 1.16 trillion yuan, which is also the second consecutive year that the cash dividend of Shanghai Stock Exchange exceeded the “trillion” mark. At the same time, the dividend payment rate increased steadily, from 31.9% in 2016 to 36.3% in 2020. In 2020, the dividend yield of Shanghai stock market reached 2.22%, which is roughly equivalent to the S & P 500 index and Dow Jones industrial index. It has become an important channel for investors to share the dividends of economic growth.
third, a stable group of listed companies with a high proportion of dividends is gradually taking shape
According to statistics, more than 370 companies have paid more than 30% dividends for five consecutive years, and about 50 companies have paid more than 50% dividends for five consecutive years, sharing performance growth Dividends with investors, becoming a “ballast” for the stable operation of the Shanghai stock market and the return of investors.
fourth, the guidelines for cash dividends on the main board of Shanghai Stock Exchange promote sustained and stable dividends
For a long time, the CSRC and the exchange have been committed to advocating listed companies to establish a sustained and stable cash dividend policy. Since the issuance of relevant guidelines by Shanghai Stock Exchange in 2013, the cash dividends of Listed Companies in Shanghai Stock Exchange have improved year by year and stabilized in recent years, generally maintained at the level of more than 30%, and gradually formed a number of companies with continuous and stable cash dividends.
Recently, in order to further standardize the cash dividends of listed companies, enhance the transparency of cash dividends and safeguard the legitimate rights and interests of investors, the main board of Shanghai Stock Exchange and the science and innovation board have made clear the requirements for cash dividends in the standardized operation. For companies that meet the conditions for dividends but do not pay dividends, supervise and urge the timely convening of investor briefing meetings.
