The disclosure of the annual report in 2021 is getting better and better. With the release of excellent “report cards” 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 27, 228 Shanghai stock exchange companies have issued cash dividend plans for 2021 (including annual report, semi annual report, quarterly report, etc.), with a total dividend of 399 billion yuan. In terms of dividend scale, 39 companies paid cash dividends of more than 1 billion yuan in 2021, and 11 companies including China Shenhua Energy Company Limited(601088) , 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.
It is worth mentioning that China Shenhua Energy Company Limited(601088) cash dividend reached a new high. It is proposed to distribute “25.4 yuan for 10” to all shareholders and 50.466 billion yuan in cash dividend, accounting for 100.4% of the net profit attributable to the company’s shareholders under the Chinese accounting standards for business enterprises in 2021. It can be said that the company’s net profit for the whole year of 2021 has been divided, temporarily ranking first in the dividend list.
The reporter noted that in previous years, 10 billion high dividend “tycoons” were almost taken over by banks, venture capital and other financial enterprises, but China Telecom Corporation Limited(601728) , China Mobile successively returned to a and listed on the main board of Shanghai Stock Exchange, breaking this pattern and becoming a “new tycoon” on the “10 billion dividend list”.
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 “rich and powerful” financial enterprises. In 2021, there are two familiar “new faces” – China Mobile and China Telecom Corporation Limited(601728) .
On March 24, China Mobile released its performance in 2021. In the whole year, 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. Its profitability continued to maintain the leading level of world-class operators.
With the support of sound performance, China Mobile, which was just listed on A-share market 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.
China Mobile further said that in order to better feed back to shareholders and share development achievements, the company fully considers profitability, cash flow status and future development needs. The profits distributed in cash within three years from 2021 will gradually increase to more than 70% of the profits of the company’s shareholders 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 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) , who joined the high dividend team in the first year of listing.
Xinjiang Daqo New Energy Co.Ltd(688303) is one of the few cash dividend companies on the science and Innovation Board at present. Cash dividend is implemented in the first year of listing, which also shows the high growth of the company. Benefiting from the shortage of silicon material market supply, the company’s silicon material price and gross profit rose sharply. In Xinjiang Daqo New Energy Co.Ltd(688303) 2021, the net profit attributable to the parent company was 5.724 billion yuan, a year-on-year increase of 448.56%. The strong performance has also injected confidence into the high dividend. The company plans to “pay 6 yuan for 10”, with a cumulative cash dividend of 1.155 billion yuan.
Up to now, China Shenhua Energy Company Limited(601088) plans to distribute 25.4 yuan to all shareholders and 50.466 billion yuan of “big red envelope” to all shareholders, and refresh the record of cash dividend once again, ranking first in the dividend list temporarily. Since its listing in 2007, China Shenhua Energy Company Limited(601088) has implemented cash dividends for 14 times, with a cumulative cash dividend of 270063 billion yuan and an average dividend rate of 49.17%.
“like” high dividend “regular”
High dividend “upstarts” are worth pursuing, and high dividend “regular customers” are worth praising. From the perspective of dividend rate (total annual cash dividends / net profit after returning to the mother), a number of listed companies with high dividend genes, such as Foxconn Industrial Internet Co.Ltd(601138) , Foshan Haitian Flavouring And Food Company Ltd(603288) , Fuyao Glass Industry Group Co.Ltd(600660) and so on, continue to give sincere 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. On March 23, Foxconn Industrial Internet Co.Ltd(601138) released the annual dividend plan for 2021, which plans to “pay 5 yuan out of 10” to all shareholders, with a total dividend of nearly 10 billion yuan (about 9.918 billion yuan) and a dividend rate of 49.56%. Since 2019, Foxconn Industrial Internet Co.Ltd(601138) has continued to enjoy high dividends, with cash dividends amounting to 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 of high dividend. In 2021, the company plans to pay 10 yuan to A-share shareholders and H-share shareholders, with a total dividend of 2.61 billion yuan, with a dividend rate of 82.95%, reaching a new high. Looking back at 2019 and 2020, the company’s cash dividend rate also remained at 64.91% and 75.26%.
Shanghai stock exchange company cash dividend normalization
In recent years, cash dividends have become a beautiful scenery in the A-share market, adding luster to the high-quality development of listed companies. Shanghai stock exchange companies dominated by blue chips are the “main force” of high dividends, and cash dividends have entered a new stage of normalization. On the whole, the cash dividend of Shanghai stock exchange companies presents 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 amount of cash dividends of Shanghai stock exchange companies 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, the dividend payment rate of more than 370 companies has exceeded 30% for five consecutive years, and that of about 50 companies has exceeded 50% for five consecutive years. Share performance growth Dividends with investors and become a “ballast” for the stable operation of Shanghai stock market and investor returns.
Fourth, the guidelines for cash dividends on the main board of Shanghai stock market promote the continuous and stable dividends of Listed Companies in Shanghai stock market. 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 introduction of the guidelines, the overall cash dividend level of Listed Companies in Shanghai Stock Exchange has been stable year by year, and a number of related companies have gradually improved in recent years.
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, the Shanghai Stock Exchange urges them to hold an investor briefing in time.
