Xinhua News Agency, Shanghai, June 15 Question: Does the listed company's 1.36 trillion yuan "dividend feast" have your "dishes"?
Xinhua News Agency reporter Pan Qing
As A-shares entered the "dividend season", listed companies opened their purses one after another and paid back investors in real money. According to public data, this year's listed companies will distribute a pride of 1.36 trillion yuan, a record high.
Is the coveted "dividend feast" the one that belongs to you?
Listed company launches "dividend feast"
Yan Qingmin, vice chairman of the China Securities Regulatory Commission, said recently that listed companies in Shanghai and Shenzhen are expected to pay a cash dividend of 1.36 trillion yuan this year, a record high.
Is there any "that dish" that belongs to you in this trillion-dollar "dividend feast"? Let's find the answer in the 2019 annual report of companies listed in Shanghai and Shenzhen.
As of April 30, a total of 2,631 listed companies in both cities had issued cash dividend plans. The 81% profitable companies on the Shanghai Stock Exchange will make cash dividends, with a total amount of 1.07 trillion yuan. Shenzhen's cash dividend companies accounted for 65.4%, the dividend amount was 287.95 billion yuan, and the dividend payment rate was 33.6%. There are also 88 companies paying dividends on the Science and Technology Board, and the total amount of cash to be distributed is about 7 billion yuan.
Let us take a look at the list of dividends to see which listed companies are the most arrogant. Statistics show that the total dividends of the top 20 listed companies occupy almost half of the country, and the top 100 companies account for about 70%. A total of 24 companies expect the total cash dividend to exceed 10 billion yuan, of which ICBC ranks first with 93.66 billion yuan, and China Petroleum, Sinopec, China Ping An and other traditional big dividend "big households" are at the forefront. As the "first-highest-priced stock" of A shares, Guizhou Moutai became the only listed company with a dividend of over 100 yuan per 10 shares.
According to the latest statistics from “Databao”, among listed companies that have announced a cash-out plan as of June 12, the dividend rate of nearly 380 companies exceeded or reached 3% based on the dividend per share and the closing price of the day. 136 companies exceeded 5%. This means that if you choose the right dish in this “feast”, your dividend income will significantly outperform the bank’s one-year fixed deposit rate.
Stockholders' "sense of gain" is expected to become stronger
In recent years, with the continuous guidance of supervision and the increasing awareness of shareholder returns, the dividend level of A-share listed companies has increased year by year. The total amount of dividends disclosed in the 2017 annual report exceeded the trillion yuan mark for the first time, and this record has been continuously updated since then.
In the A-share market, a group of listed companies with stable and high dividends has been formed. Statistics show that the number of companies in the Shanghai Stock Exchange with dividends exceeding 30% and 50% for three consecutive years has reached more than 570 and more than 90, respectively. The number of companies that have paid dividends for three consecutive years in Shenzhen reached 1,272.
Qiu Yanying, managing director of Shanghai Zunwei Investment Management Co., Ltd., said that the level of cash dividends can reflect the financial status of listed companies to a certain extent. High-performance companies with abundant cash flows usually have the ability to continue dividends. Stable dividends can not only protect investors' investment income, but also help reduce the risk of stock price fluctuations.
According to the new securities law that came into effect on March 1 of this year, listed companies should clearly specify the specific arrangements and decision-making procedures for distributing cash dividends in the articles of association, and protect shareholders’ right to return assets in accordance with law. If a listed company’s after-tax profits for the year have surpluses after making up for losses and withdrawing statutory reserve funds, it shall distribute cash dividends in accordance with the company’s articles of association.
It is foreseeable that as the dividend-sharing behavior of listed companies tends to be standardized, there will be more and more “cash cows” with continuous dividends in the A-share market in the future, and there will be fewer and fewer “iron roosters”. The stronger.
You should also know about dividends
It is a good thing for investors to obtain a continuous and stable dividend from listed companies. However, you should also know about these dividends.
As one of the important ways for shareholders to obtain investment income, dividends are subject to personal income tax. The current policy imposes differential taxation on dividend dividend income according to the length of holding time. The holding is temporarily exempted for more than 1 year, the holding is halved from 1 month to 1 year, and short-term investment holding less than 1 month is fully levied. This means that even investors in the same listed company may end up with different dividends.
After some stocks have completed the ex-rights and ex-dividends, the trading price will be lower than the ex-rights price. In the case of such "subsidy rights" market, investors will not only have no actual income, but will have a floating loss.
The group of high-cash dividend-listed companies brings together a large number of high-quality enterprises, but it also needs to be carefully screened. In fact, in the history of A shares, there have been cases of creating a "cash cow" image through financial fraud.
Furen Pharmaceutical launched a dividend payment plan of 62.72 million yuan in 2018, which was finally lost due to the "mysterious disappearance" of 1.7 billion yuan in monetary funds. In July 2019, Furen Pharmaceutical was investigated by the China Securities Regulatory Commission for suspected violations of laws and regulations. In September of the same year, it was issued a delisting risk warning due to the risk of major illegal delisting.
Industry experts reminded that dividends are not the only standard for testing the quality of listed companies. For investors, the selection of high-quality investment targets also requires comprehensive consideration of assets and liabilities, profitability, business continuity, industry competition pattern, and company industry status. Do not be fooled by the superficial "generity".