Although most bank stocks are in a net breaking state, banks still generously take out “real gold and silver” to repay shareholders. Among the 22 banks that have disclosed the performance report of 2021, 20 banks have announced the dividend plan. Due to the high growth of bank performance rarely seen in recent years, bank dividends are also particularly “generous”.
According to the statistics of xingkuang data of financial Associated Press, based on the number of share capital at the end of 2021, except China Zheshang Bank Co.Ltd(601916) , Bank Of Zhengzhou Co.Ltd(002936) regardless of infrared, the 20 A-share listed banks that announced dividends plan to pay dividends of nearly 500 billion yuan, which is the absolute “main force of dividends” among A-share listed companies.
In 2021, the share price performance of bank shares is not satisfactory, but the dividend may make up for the “Book Loss” of investors to a certain extent. Some insiders believe that cash dividends of listed companies are one of the effective weights to attract long-term investment. From the perspective of traditional values, companies with continuous cash dividends have long-term investment value.
six major banks have a total dividend of nearly 400 billion
According to the statistics of xingkuang, the total amount of dividends to be paid by the 20 listed banks that have announced the dividend plan is 488.36 billion yuan, an increase of 55.78 billion yuan over last year, and the dividend proportion of most banks is higher than 30%.
It is worth noting that only six large banks have a total dividend of 382193 billion yuan. Among them, ICBC won the “dividend king” of A-Shares in 2021 with a dividend of 104534 billion yuan China Construction Bank Corporation(601939) dividends reached 91.004 billion yuan, ranking second. The dividends of Agricultural Bank of China and Bank of China have exceeded 60 billion yuan, and the dividends of Bank of communications and Postal Savings Bank Of China Co.Ltd(601658) have exceeded 20 billion yuan. At the same time, the dividend proportion of the six banks reached 30%.
Among the joint-stock banks, China Merchants Bank Co.Ltd(600036) plans to pay a dividend of 38.385 billion yuan, making it the largest cash dividend bank among the joint-stock banks. The dividend scale of Industrial Bank Co.Ltd(601166) , China Citic Bank Corporation Limited(601998) , China Everbright Bank Company Limited Co.Ltd(601818) plans also exceeded 10 billion yuan.
In the face of many challenges of economic development this year, can banks balance the problem of capital adequacy with large dividends?
In this regard, Guan Xueqing, Secretary of Industrial And Commercial Bank Of China Limited(601398) chairman, said that an appropriate proportion of cash dividends and an appropriate capital adequacy ratio can not only meet the needs of cash dividends in the current period, but also help the long-term value growth of listed companies. While satisfying endogenous capital replenishment through profit retention, the bank is committed to creating return on investment for shareholders and has always adhered to a long-term and stable cash dividend mechanism, creating a high return on cash dividends for shareholders.
However, in order to deal with the complex environment, some banks have reduced the dividend proportion this year China Everbright Bank Company Limited Co.Ltd(601818) this year, the proportion of dividends will be reduced from 30% to 28.13% Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) dividend ratio also decreased from 30.4% in 2020 to 25.1%. While China Zheshang Bank Co.Ltd(601916) and Bank Of Zhengzhou Co.Ltd(002936) plan not to pay dividends.
China Everbright Bank Company Limited Co.Ltd(601818) vice president Zhao Ling said that the dividend proportion of the bank is still at a high level in joint-stock banks, and the retained earnings will continue to create return on investment for common shareholders. He said that on the basis that the capital adequacy ratio can meet the regulatory requirements and business development needs, China Everbright Bank Company Limited Co.Ltd(601818) will fully consider the interests of investors, maintain the continuity and stability of dividend policy, strive to achieve a higher cash dividend ratio and create a good return on investment for investors.
Bank Of Zhengzhou Co.Ltd(002936) announced that the bank plans not to carry out cash dividends, mainly considering that economic development faces many challenges; In the case of continuous risk exposure, the bank’s retained undistributed profits in compliance with the guidance of supervision will help it further enhance its risk resistance and provide guarantee for maintaining stable and good operation.
10 banks with a dividend yield of more than 5% are holding shares and other dividends reliable
The dividend of the banking industry has always been high. Therefore, there has always been the view that “holding bank shares for a long time only to earn dividends”. The decision of dividend is usually based on the dividend rate.
According to the statistics of xingkuang, based on the closing price on March 30, 10 of the A-share listed banks have a dividend rate of more than 5%. The highest dividend yield is Bank Of Communications Co.Ltd(601328) , and the annual dividend yield of the bank in 2021 is as high as 7.7%. Followed by Bank Of China Limited(601988) , the dividend yield reached 7.25%. In addition, the dividend yield of ICBC, China Construction Bank, CITIC, Everbright and other banks exceeded 6%.
China Everbright Bank Company Limited Co.Ltd(601818) financial market analyst Zhou Maohua said that generally speaking, the dividend rate is the ratio between the annual dividend and the market price of listed companies. The higher the dividend rate, the more dividends the ordinary shareholders of the company pay, which means that the company has strong profitability, good performance and good growth in the future.
The dividend yield is more than 5%, which is generally higher than the one-year deposit interest rate, the yield of most treasury bonds and the yield of most financial products. “This shows that bank stocks still have strong investment attraction, especially for investors preparing for medium and long-term investment and prudent investors.” Zhou Maohua said.
A senior analyst in the banking industry also said that for medium and long-term investments of 3-5 years, the bank dividend rate of more than 5% shows a strong attraction; But for short-term investment, stock price fluctuation is also a factor to be considered.
Banks also did not forget to take advantage of the performance conference to promote their own stocks Bank Of China Limited(601988) president Liu Jin said frankly at the performance conference that although the dividend rate and dividend rate of the bank are not too high for institutional investors, it is a stable and reliable choice under the current complex situation outside China. Similarly, for personal wealth managers and individual clients, it is also a good choice to be part of the asset portfolio.
