The dividends of listed banks are being distributed one after another.A few days ago, Bank of Communications, Postal Savings Bank and Bank of Hangzhou have successively issued announcements on the implementation of dividend distribution for A-shares in 2021, and will pay dividends of 26.363 billion yuan, 22.856 billion yuan and 2.076 billion yuan respectively in the near future.
Data shows that among the 42 A-share listed banks, a total of 40 banks have annual dividend plans in 2021, with a total dividend scale of nearly 550 billion yuan, ranking first among 31 industry sectors of Shenwan.
It is worth noting that China Construction Bank, Bank of Shanghai, and Qingnong Commercial Bank will implement equity registration tomorrow (July 7). Next week, 5 banks will implement equity registration and distribute dividends the next day.
Based on the closing price on July 6, there are currently 19 banks with a dividend yield of more than 5%.This rate of return has been stronger than many money funds and most bank wealth management products on the market.
Several banks to start equity registration
The share registration date refers to the deadline for registering the list of shareholders entitled to receive dividends as stipulated by the board of directors. Those who own shares of the company on the share registration date can receive dividends.
According to the announcement, China Construction Bank, Bank of Shanghai, and Qingnong Commercial Bank will implement equity registration on July 7 and start paying dividends on July 8.It is reported that the dividends per share of the three banks' A shares are 0.364 yuan, 0.4 yuan, and 0.1 yuan (tax included).
On July 11, Bank of Communications, Industrial and Commercial Bank of China, Postal Savings Bank of China, and Bank of Ningbo will conduct equity registration, and the dividends per share will be 0.355 yuan, 0.2933 yuan, 0.2474 yuan, and 0.5 yuan respectively.On July 12, Hangzhou Bank will conduct equity registration, and the dividend per share will be 0.35 yuan.
In addition, the 2021 dividend distribution plan of Agricultural Bank, Bank of China, China Merchants Bank, China CITIC Bank and other banks has been approved by the shareholders' meeting, and the implementation announcement of the 2021 annual equity distribution will be released later.
Over the years, almost all of the listed banks' profit distribution has adopted the method of cash dividends, and the amount of dividends has kept growing in tandem with profits, enabling shareholders to enjoy stable returns.According to the 2021 annual report data, a total of 40 banks have annual dividend plans, and the proposed cash dividend scale reaches 549.107 billion yuan, a record high.
From the perspective of the scale of dividends, state-owned banks and joint-stock banks are still the largest dividend payers.Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank, and Bank of China in 2021 all have annual dividends of more than 50 billion yuan, 104.534 billion yuan, 91.004 billion yuan, 72.377 billion yuan, and 65.060 billion yuan respectively. China Merchants Bank, Bank of Communications, Postal Savings Bank, Industrial Bank's dividend scale also exceeded 20 billion yuan.
From the perspective of dividend ratio, Shanghai Rural Commercial Bank has the highest dividend ratio at 55.69%.In addition, there are 10 banks including Qingdao Bank, Jiangyin Bank, Xiamen Bank, Xi'an Bank and other 10 banks whose cash dividend ratio exceeds 30%.
Dividend yields of many banks exceed 5%
Bank stocks have broken more nets in recent years. Many banks’ PB values have been below 0.8 for a long time, and their dividend yields have also risen.
According to the data, based on the closing price on July 6, 36 banks in the banking sector are in a state of breaking net, with a net breaking rate exceeding 80%.Hua Xia Bank's price-to-book ratio is only 0.33 times.
In terms of dividend yield, there are already 19 banks with a dividend yield of more than 5%.Among them, Shanghai Agricultural Bank and Bank of Communications have the highest dividend yields, both exceeding 7%.The dividend yield of nine banks including Chongqing Rural Commercial Bank, Agricultural Bank of China, China Everbright Bank and Bank of Beijing also exceeded 6%.
This level of dividend yield is significantly higher than the yield of many wealth management products.The "Annual Report on China's Banking Wealth Management Market (2021)" disclosed by the Banking Wealth Management Registration and Custody Center 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.
Tian Guoli, chairman of China Construction Bank, previously stated publicly that in the long run, the dividend rate of China Construction Bank has been much higher than the yield of wealth management products.Bank of China President Liu Jin once said at the results conference that for institutional investors, Bank of China's dividend rate and dividend rate are not high, but it is also a stable and reliable choice under the current complex domestic and international situation.For individual clients, it is a good choice as an integral part of a portfolio.
An industry insider told reporters that bank stocks have always been an investment with low valuations and high dividends.The investment strategy of "taking dividends through long-term investment in bank stocks" is reasonable to a certain extent, but the premise is that the listed bank has a stable operation, a stable dividend plan, and a relatively stable stock price.
