The big dividends come to the bank stocks and bank wealth management, which one has higher returns?
Right now is the window period for the disclosure of the 2021 annual report. Due to the sharp decline in A shares this year, the large-scale cash dividend plan of listed companies has attracted market attention.
During the period of A-share volatility, one side is the large cash dividends of bank stocks, and the other side is that the high-yield wealth management of banks is no longer in the limelight. Whether to buy bank stocks or buy bank wealth management has become a hot topic for investors to discuss.
Big dividends from many companies
According to public information, as of April 7, more than 1,000 listed companies have announced cash dividend plans.
Among them, the Industrial and Commercial Bank of China took the lead with a total dividend of 104.534 billion yuan; 206 companies had a cash dividend rate of more than 50%, and 37 companies such as LONGi Machinery reached 100% and above; the dividend rate (calculated based on the stock price on the announcement day) exceeded 4% There are 115 of them, and Benxi Iron and Steel Co., Ltd. ranks among the top with a dividend yield of 23.95%.
On April 8, the high-priced stock Gigabit stated in its 2021 annual report that it plans to distribute a cash dividend of 160 yuan for every 10 shares to all shareholders, with a total cash dividend of 1.150 billion yuan, accounting for nearly 80% of the net profit in 2021.
Market analysis believes that its generous cash dividend plan is comparable to the cash dividend of 216.75 yuan per 10 shares of Kweichow Moutai. In terms of cash dividend rate, Gigabit "beats" Kweichow Moutai's 51.90% by 78.30%.
On the basis of the cash dividend of 5 yuan per 10 shares distributed in the middle of 2021, Bengang Steel plans to distribute a cash dividend of 6 yuan per 10 shares in 2021. Combined, the dividend rate is as high as 23.95%.
China Shenhua, which has maintained high dividends all year round, still has a high-profile dividend this year. The dividend plan announced on March 26 shows that it plans to distribute 25.4 yuan in cash for every 10 shares, with a dividend rate of 8.53%.
In addition, China Shenhua's cash dividend rate in 2021 will reach 100.39%.
10 bank stocks with dividend yields over 5%
In terms of bank stocks, the cash dividend distribution ratio of the six major state-owned banks continued to remain at the level of 30%.
The total dividends of China Construction Bank were 91.004 billion yuan, the total dividends of Agricultural Bank of China were 72.376 billion yuan, the dividends of Bank of China were 65.06 billion yuan, and the dividends of Bank of Communications and Postal Savings Bank both exceeded 20 billion yuan.
Among the joint-stock banks, China Merchants Bank has a total dividend of 38.385 billion yuan, with a dividend ratio of 33%; Industrial Bank and China CITIC Bank plan to distribute the highest proportion of cash dividends since listing.
The large dividend payout makes the dividend yield, an important indicator, more valued by investors.
Dividend yield refers to the ratio of dividends to the stock price at the time of purchase, and this metric is a simplified way of investment yield.
Based on the closing price on April 1, 10 listed banks have a dividend yield of more than 5%, accounting for 24% of bank stocks.
Among them, the dividend rate of Bank of Communications is as high as 6.93%, and the dividend rate of Bank of China, Agricultural Bank, Industrial Bank, Chongqing Rural Commercial Bank, Industrial and Commercial Bank of China, and China Everbright Bank are all above 6%.
In a volatile market, stable bank stocks have smoothed out market risks to a certain extent. Attractive dividend yields, coupled with relatively low stock prices, over 70% of bank stocks are in a state of breaking net.
Zhao Ling, vice president and secretary of the board of directors of China Everbright Bank, said at the performance conference that the current dividend rate of China Everbright Bank's A shares is over 6%, and the dividend rate of H shares is 8%, which is much higher than the current one-year fixed deposit interest rate. The yield far exceeds the one-year financial product yield.
Bank stocks and bank wealth management have different returns
If we take Bank of Beijing with a relatively high dividend rate as an example, we can compare the income gap between bank stocks and bank wealth management.
According to the closing price of 4.43 yuan on March 22, the dividend rate of Bank of Beijing is 6.772%.
If you buy 100 lots at this price, you need to invest 44,300 yuan, and the income is 2,999.996 yuan.
Assuming that the dividend rate and the number of shares held by Bank of Beijing remain unchanged in the future, the income in 14.76 years can be recovered, and the total income in 15 years is 45,000 yuan.
And if you use 44,300 yuan to buy wealth management products, based on the weighted average annualized rate of return of 3.55% in 2021, the one-year income is 1,572.65 yuan; if you buy large-denomination certificates of deposit, the one-year average interest rate in February 2022 is 2.283% Calculated, the annual income is 1,011.369 yuan, but in fact, 44,200 yuan has not reached the threshold of large-amount certificates of deposit, and the actual income may be lower.
However, the dividend rate is a dynamic indicator, and the timing of investors' buying is closely related to the dividend rate.
Therefore, investors who buy stocks, in addition to the dividend rate, also need to consider cost factors such as stock price fluctuations, commissions paid for trading, and personal income tax.
Still taking Bank of Beijing as an example, if you buy at the closing price of 4.68 yuan at the recent highest point on February 11, and also invest 44,300 yuan, the yield will be reduced to 2,839.7629 yuan, which means that the income per 100 lots will be reduced by about 160 yuan.
Assuming that the dividend rate and the number of shares held by Bank of Beijing remain unchanged in the future, the time required to return to capital by relying on income increases to 15.60 years, which is one year longer than when it was purchased at 4.43 yuan.
Suggest
How to choose bank stocks and bank wealth management products?
Professionals suggest that stock selection is as important as timing when choosing bank stocks.
It is necessary to select bank stocks with better fundamentals and lower valuations for long-term value investment, which can not only obtain returns from stock growth and higher dividends, but also bear lower market volatility risks.
In addition, investors also bear the risk of large fluctuations in the banking sector, so timing is equally important.
When choosing a bank wealth management product, you should also do your homework.
Investors need to understand the underlying assets and market risks of wealth management products, choose wealth management products that match their risk appetite, and do a good job in diversifying investment and asset allocation.
Choosing stocks and wealth management products are two completely different investment methods, and the risk factors and investment experiences behind them are also quite different.
Investors with low risk appetite are more suitable for insurance, time deposits and fixed income wealth management products. Investors with pension needs can also configure exclusive pension wealth management products; investors with high risk appetite and pursuing excess returns can choose stocks, Public funds and equity financial products.
Text / reporter Liu Shenliang
Coordination / Yu Meiying