Bank dividends are about 490 billion yuan, so why don't you buy bank shares?
The income of buying bank shares exceeds the interest rate income of depositing banks, and investors also need to master the necessary investment skills.
With the completion of the disclosure of the annual reports of listed companies in 2020, the dividends of bank stocks have once again attracted the attention of the market.
According to reports, among the 38 A-share listed banks, only Bank of Zhengzhou does not distribute cash dividends, and the cumulative dividends of other bank shares are about 490 billion yuan.
Calculated based on the closing price on May 7th, there are 7 banks with a dividend rate of more than 5%. Among them, Bank of Communications, Bank of Beijing, and Bank of China have dividend rates of more than 6%.
Among the 37 bank stocks that pay dividends, 35 bank stocks have a dividend rate of more than 2%, which is higher than the one-year bank deposit interest rate.
For this reason, there are public opinions that it is better to buy bank shares than deposit banks.
If only because the dividend rate is higher than the interest rate of bank deposits, it would be better to buy bank shares than deposit banks. This is actually somewhat untenable.
Although the dividend rate and the deposit rate are both indicators of return to investors, there are still significant differences between the two and should not be confused.
For example, the bank deposit interest rate is 1.75%, which means that after one year, the bank deposit of 100 yuan becomes 101.75 yuan, and the dividend rate of 5% does not mean that the investor’s wealth has changed from 100 yuan to 105 yuan.
Because when a listed company pays dividends, it needs to be ex-divided, and it also needs to pay dividends tax. After the equity registration date, 100 yuan becomes 95 yuan (stock price) + 5 yuan (dividends)-0.5 yuan (dividend tax) = 99.5 yuan.
If the wealth is to be changed from 100 yuan to 105 yuan, it needs to be realized through speculation in the secondary market.
Therefore, there is a difference between the dividend rate and the bank deposit rate. You cannot make a simple analogy between the two. It is believed that the dividend rate is higher than the bank deposit rate, which means that buying bank shares has more investment value than depositing banks. The actual situation is not completely the case.
However, looking at the time span of one year, the return on investment from buying bank stocks is definitely higher than the bank deposit interest rate.
And this return on investment is not measured by the dividend rate, but by the tangible return on investment obtained by earning the difference in the secondary market.
For example, if an investor buys stocks in a bank at around 5 yuan, and then sells stocks at around 5.5 yuan, then the investor’s return on buying the bank’s stock is 10%, which is much higher than the one-year bank deposit of 1.75% interest rate.
This is why it is better to buy bank shares than deposit banks.
The income of buying bank shares exceeds the interest rate income of depositing banks, and investors also need to master the necessary investment skills.
First, do not buy bank stocks to participate in cash dividends.
A high dividend rate is indeed a good thing for investors, but investors cannot buy bank stocks just because of the high dividend rate, especially in order to participate in cash dividends.
Although the cash dividends of bank stocks are generous, it is a temptation for the market, but for small and medium investors, participating in cash dividends may not be cost-effective.
Because after the ex-dividend treatment, the price of bank shares will be reduced accordingly, and dividend tax will also be withheld, investors may bear certain losses due to the withholding of dividend tax.
In order for investors to have income, they must also build on the market's speculation of stock prices.
Secondly, do not chase high and buy bank stocks, especially the six major bank stocks. Investors should not chase high and buy.
If it is not for the big market, the growth of the six major bank stocks is basically limited.
If investors chase high and buy, they are likely to be stuck.
In addition, buying bank stocks also needs to choose listed banks with relatively good growth, especially those in relatively developed regions.
Generally speaking, bank stocks with better growth potential have relatively more investment opportunities, while listed banks in some economically developed regions will also have relatively better growth potential.
Chengdu Commercial Daily-Red Star News Special Commentator Pi Haizhou