Home » Listed Banks Dividend 550 Billion, Record ICBC’s Highest Dividend Scale

Listed Banks Dividend 550 Billion, Record ICBC’s Highest Dividend Scale

by admin

Original title: Listed bank dividends of 550 billion set a record ICBC’s highest dividend scale

For A-share investors, they may find that there is an extra amount of money in the stock account recently, and this money comes from stock dividends. Entering July, the pace of bank dividends accelerated. According to public information disclosure, as of July 7, 30 banks have completed dividend distribution or will implement dividend distribution, and 10 dividend distribution plans have been approved by the general meeting of shareholders but have not yet issued relevant implementation announcements.

As a “big dividend payer” in the A-share market, the first financial reporter noticed that 40 of the 42 listed banks decided to implement dividends, with a total dividend scale of 549.107 billion yuan, a record high. Due to the high level of dividends, many banks’ dividend yields have also remained high, and some banks’ dividend yields have exceeded 7%, which is significantly higher than the yields of many wealth management products.

But it should be noted that buying bank wealth management and investing in bank stocks represent different ways of investing in financial products. Industry insiders interviewed by reporters said that although some bank stocks have higher dividend yields, investing in bank stocks depends not only on dividend yields, but also on bank fundamentals, profitability, and asset quality. Most views believe that thanks to policy support, future credit issuance is expected to usher in a “small spring”, which will catalyze a new round of bank stocks.

30 banks have issued implementation announcements

Due to the higher dividend scale compared with other industries, the annual dividend distribution of bank stocks has attracted much attention. After the previous announcement of the dividend plan, dividends have been “landed” in succession recently.

According to Wind statistics, as of July 7, 30 banks have issued dividend implementation announcements, most of which are city commercial banks and rural commercial banks. Among them, 22 banks have already paid dividends. The earliest dividend distribution was Zhangjiagang Bank, which paid dividends on May 5 this year, and the cumulative total dividends reached 289 million yuan.

In terms of months, 6 banks completed dividends in May, namely Zhangjiagang Bank, Ruifeng Bank, Suzhou Bank, Jiangyin Bank, Jiangsu Bank and Qingdao Bank; in June, there were 14 banks, including Huaxia Bank, Changshu Bank, Guiyang Bank Banks, Industrial Bank, Minsheng Bank, Nanjing Bank, etc.; in July, there were 10, of which Qilu Bank and Wuxi Bank have completed dividends, and the remaining 8 are waiting.

Banks that will pay dividends in the near future include China Construction Bank, Bank of Shanghai, and Qingnong Commercial Bank. According to the relevant announcement, the three banks implemented equity registration on July 7 and will start paying dividends on July 8. The three banks’ A-share dividends are 0.364 yuan, 0.4 yuan, and 0.1 yuan (tax included).

See also  The Panetta era begins at Bankitalia: all eyes on the first appointment to the directorate

In addition, on July 11, Bank of Communications, Industrial and Commercial Bank of China, Postal Savings Bank, and Bank of Ningbo will conduct equity registration, and will pay dividends on July 12. The four banks’ dividends per share are 0.355 yuan, 0.2933 yuan, and 0.2474 yuan respectively. Yuan and 0.5 yuan; on July 13, Hangzhou Bank will also pay dividends, with a dividend of 0.35 yuan per share.

In addition to the above 30 banks, there are 10 banks including Ping An Bank, Agricultural Bank of China, Bank of China, Shanghai Pudong Development Bank, China Merchants Bank, China CITIC Bank, etc. The 2021 dividend distribution plan has been approved by the shareholders’ meeting, and the implementation announcement of the 2021 annual equity distribution will be released later . With the release of the announcement, it is expected that more bank dividends will land in July.

In terms of scale, large state-owned banks are the “main force” of bank dividends. According to the reporter’s statistics, the proposed dividends of Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, Bank of Communications and Postal Savings Bank are 104.534 billion yuan, 91.004 billion yuan, 72.376 billion yuan, 65.06 billion yuan, 23.541 billion yuan and 22.856 billion yuan respectively. Over 380 billion yuan, accounting for nearly 70% of the total dividends, and the corresponding cash dividend ratios are all above 30%. Among them, the Industrial and Commercial Bank of China topped the list with a dividend amount of 104.5 billion yuan, while the cash dividends of Postal Savings Bank and Bank of Communications were higher, at 32.24% and 32.16%, respectively. However, the current six state-owned banks have not yet implemented dividends.

In fact, in recent years, considering various factors such as shareholders’ return demands and business development needs, as well as regulatory requirements, several large state-owned banks have paid dividends of more than 30%.

In the list of cash dividends of A-share listed companies published for the first time by the China Association of Listed Companies, state-owned banks also ranked at the forefront. Specifically, in the “List of Listed Companies with Huge Returns”, seven of the top ten are banking institutions, with Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank taking the top four; China Merchants Bank, Industrial Bank and Bank of Communications ranked seventh, ninth and tenth respectively.

See also  The national youth team will have the first round of "slimming" after the match against Syria today_Opponent_Competition_Warm-up match

12 Banks Dividend Yield Over 5%

Based on the high dividend level, many banks’ dividend yields have performed well. The so-called dividend rate refers to the ratio of dividends to the stock price at the time of purchase. It is a simplified form of investment yield and one of the important factors to measure whether a company has investment value. Dividends are mainly related to dividends, and are also affected by the performance of bank stock prices.

According to the calculation of the average stock transaction price of each bank in 2021 by the first financial reporter, 12 banks have a dividend yield of more than 5%. Among them, Bank of Communications has the highest dividend yield of 7.64%, followed by Bank of China and Agricultural Bank of China with 6.99% and 6.64% respectively. Another 15 banks have dividend yields between 3% and 5%, 12 banks have dividend yields below 3%, and those with lower dividend yields are Ruifeng Bank, Ningbo Bank and Ping An Bank, which are 1.54% and 1.32% respectively. % and 1.12%.

On the whole, the dividend rate of most banks is higher than the deposit interest rate and wealth management yield, so there are many investors who believe that “buying wealth management is worse than buying bank stocks”. Earlier, Bank of China President Liu Jin said that the bank’s dividend rate in 2021 will be 6.99%, an increase of 1.21 percentage points over the previous year. Although this is not high for institutional investors, it is also a high priority in the current complicated domestic and foreign situation. A stable and reliable choice.

In terms of bank wealth management yields, along with the interest rate liberalization reform, the wealth management yields have continued to decline in recent years. According to the statistics of Guohai Securities Research Report, in 2021, the trend of weighted yield of wealth management products will fluctuate in the range of 3% to 4%, and the fluctuation of yield is relatively stable; The average annualized rate of return is 3.55%, down 34BP from the previous year.

The “Annual Report on China’s Banking Wealth Management Market (2021)” previously disclosed by the Banking Wealth Management Registration and Custody Center also shows that in each month of 2021, the weighted average annualized rate of return of bank wealth management products is 3.97% at the highest and 2.29% at the lowest.

But it should be noted that for investors, bank wealth management and bank stocks are different investment assets. A person from the Beta Research Institute once told reporters that most of the wealth management products are low-risk investments, and the underlying assets are fixed-income products, such as bonds and inter-bank bills. Relatively controllable; but if you buy bank stocks, it is a high-risk investment, and the retracement of the stock price is relatively uncontrollable. Investors need to know their own risk tolerance before choosing the corresponding investment target.

See also  How much does a judge earn? Here is the salary of a magistrate

This means that investing in bank stocks depends not only on dividend yields, but also on bank fundamentals, profitability, asset quality, and more. In recent years, bank stocks have been at historically low levels. As of the end of June, the overall price-to-book ratio of the sector was 0.56 times. In addition, based on the closing price on July 7, 36 of the 42 A-share listed banks are in a state of breaking net, with a net breaking rate of more than 80%; among them, Minsheng Bank and Hua Xia Bank have the lowest price-to-book ratio, both of which are about 0.32 times. .

However, most industry insiders believe that the recovery of the epidemic, policy efforts and economic recovery are still the main lines of bank investment this year. Liao Zhiming, chief banking analyst at China Merchants Securities, told China Business News that if the epidemic continues to improve, real estate sales improve, and the economy is expected to recover, the banking sector may repeat the post-epidemic recovery from the third quarter of 2020 to the first quarter of 2021.

Liang Fengjie, chief analyst of the banking industry of Zheshang Securities, also said that the increase in credit and social financing in May is the prelude. It is expected that the quality and quality will improve and supply and demand will be booming from June to August. It is expected to achieve the first consecutive increase in credit and social financing since 2022. , The growth rate increased month by month for the first time. At that time, the market’s expectations for the continuity of credit easing will usher in an inflection point, which will further catalyze the market situation of the banking sector.

“The policy increase has helped the growth of the real economy, the direction of the transformation of wide credit is clear, and the expansion of credit scale is sustainable. At the same time, the real estate sales data has recovered, and the pressure on the quality of banks’ assets has eased. On the whole, the bank’s future performance growth space is sufficient.” Caixin Securities mentioned and. Return to Sohu, see more

Editor:

Disclaimer: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy