On May 5, with Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) taking the lead in issuing dividends in 2021, the “cash red envelopes” of hundreds of billions of yuan from listed banks will also be issued one after another.
Among all 42 A-share listed banks, 39 banks have launched profit distribution plans, all in the form of cash dividends. According to the profit distribution plan disclosed by listed banks, the amount of cash dividends in 2021 will reach a new high of 545249 billion yuan (including tax, the same below), with a year-on-year increase of nearly 12%.
dividend amount increased by 11.62%
With the completion of the disclosure of the annual report, while the listed banks showed the excellent performance report of last year, all their dividend plans have been announced.
Among all 42 A-share listed banks, 39 banks announced that they would distribute profits in 2021, and the profit distribution plan of the above banks was implemented in the form of cash dividends, hoping to repay shareholders in the form of real gold and silver. In addition, Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Bank Of Suzhou Co.Ltd(002966) in addition to cash dividends, they also include the conversion of share capital.
Statistics show that the amount of cash dividends of listed banks in 2021 will hit a new record, with a total cash distribution of 545249 billion yuan, an increase of 11.64% over 488419 billion yuan in 2020. Even excluding several banks listed after 2021 and launching the A-share dividend scheme for the first time, the cash dividend amount of A-share listed banks in 2021 still increased by double digits compared with 2020.
As the “most profitable” bank, ICBC’s cash dividend in 2021 will exceed 100 billion yuan for the first time, reaching 104534 billion yuan. In terms of cash dividend per share, China Merchants Bank ranks first. According to its disclosed profit distribution plan, the bank’s cash dividend per 10 shares in 2021 is as high as 15.22 yuan. In addition, Industrial Bank Co.Ltd(601166) cash dividend per share is also more than 1 yuan, which is 10.35 yuan per 10 shares.
As the “core force” of listed banks, the dividend amount of the six state-owned banks is also the highest among all kinds of listed banks. Six state-owned banks distributed a total of 382193 billion yuan in cash in 2021, an increase of 11.81% year-on-year, accounting for more than 70% of the dividend amount of listed banks.
In addition to ICBC leading other listed banks in the amount of cash dividends in 2021, the cash dividends of China Construction Bank Corporation(601939) , Agricultural Bank Of China Limited(601288) , Bank Of China Limited(601988) reached 91.004 billion yuan, 72.376 billion yuan and 65.56 billion yuan respectively, ranking second to fourth in the dividend list of listed banks. In addition, the cash dividends of Bank of communications and Postal Savings Bank Of China Co.Ltd(601658) were also more than 20 billion yuan.
The reporter noted that the profit distribution plans of the six major state-owned banks in recent years have been carried out in the form of cash dividends, and the proportion of cash dividends has been maintained at 30% or more. The amount of dividends has basically kept pace with the growth rate of performance, which has played a good exemplary role.
“The vast majority of listed banks have not only launched profit distribution plans on time for many years, but also adopted cash dividends in dividend distribution, which enables bank shareholders, especially small and medium-sized shareholders, to share the returns brought by their performance growth, which helps to establish a value investment concept for small and medium-sized investors.” Xu Hongcai, deputy director of the economic policy committee of the China Policy Science Research Association, said in an interview with the Securities Daily.
24 banks with dividend yield exceeding 4%
The dividend amount of listed banks in 2021 not only reached a new high, but also highlighted the long-term investment value of listed banks due to the generally high dividend rate.
Among the 39 banks that pay cash dividends, 24 have a dividend rate of more than 4% (calculated by the closing price at the end of last year), among which the dividend rate of Bank of communications, Bank of China and Agricultural Bank of China is more than 7%. According to relevant data, in each month of 2021, the weighted average annualized yield of financial products is the highest of 3.97% and the lowest of 2.29%. It can be seen that the dividend yield of most listed banks has been higher than that of bank financial products in the same period.
According to the profit distribution progress disclosed by the bank, Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) will begin its dividend distribution in 2021 on May 5. The bank’s profit distribution plan is to convert 2 shares for every 10 shares and distribute 1.6 yuan, becoming the first listed bank to implement dividend distribution.
According to the process, after the board of directors of listed banks has approved the profit distribution plan for 2021, it can be implemented on an optional date only after it is deliberated and approved by the general meeting of shareholders of their respective banks.
The reporter of Securities Daily found that among the 39 listed banks that have launched profit distribution plans, except for Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Bank Of Suzhou Co.Ltd(002966) , Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) will implement dividends next week. In addition, the profit distribution plans of Jiangsu Jiangyin Rural Commercial Bank Co.Ltd(002807) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) have been deliberated and approved by the general meeting of shareholders. The progress of profit distribution of other banks is slightly delayed and is still in the stage of deliberation and approval by the board of directors. According to the dividend distribution time of listed banks in previous years, June and July are the peak of profit distribution every year, and the dividend of listed banks will be basically distributed by the end of July.
