For a long time, A-share listed banks have been "big dividend payers". The 2021 annual report data shows that the banking sector ranks first among Shenwan's 31 industry sectors with a planned cash dividend of over 540 billion yuan. In addition to the "atmospheric" dividends, the dividend yields of bank stocks are generally higher. Industry insiders believe that bank stocks have long-term allocation value.
9 banks distributed more than 15.5 billion yuan
On the evening of June 8, Industrial Bank announced that the bank will distribute the 2021 annual A-share rights on June 16, with a cash dividend of 1.035 yuan (tax included) per share, a total of 21.501 billion yuan in cash dividends. On the evening of the same day, Bank of Nanjing announced that it will distribute the 2021 annual A shares on June 17, with a cash dividend of 0.46162 yuan (tax included) per share, and a total of 4.757 billion yuan in cash dividends.
According to incomplete statistics from reporters, as of now, a total of 13 A-share listed banks have released the 2021 annual equity distribution implementation announcement, of which 9 banks have completed the implementation, with a total of 15.57 billion yuan in cash dividends.
Among the 9 banks, 3 have a cash dividend ratio of more than 30%. The highest is Bank of Qingdao, at 31.86%; the lowest is Bank of Guiyang, at 18.14%. From the perspective of total dividends, the current highest is the Bank of Jiangsu, reaching 5.908 billion yuan, and Hua Xia Bank distributed cash dividends of 5.2 billion yuan.
It is worth noting that four other banks will implement dividends next week. Among them, the cash dividends of Zijin Bank and Sunong Bank will be distributed on June 13 and June 16 respectively.
According to common practice, the implementation of dividends by listed banks generally starts at the beginning of June each year, and the distribution is completed before the end of July. Analysts pointed out that from the bank's own point of view, implementing a relatively high percentage of dividends will help attract more investors, enhance its own image, and play a certain role in stabilizing stock prices and strengthening market value management.
Over 500 billion yuan of red envelopes "on the way"
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 pace with the growth of profits, which not only allows bank shareholders, especially small and medium investors, to enjoy stable returns, but also consolidates the long-term value investment concept. According to the 2021 annual report data, the proposed cash dividend of A-share listed banks exceeded 540 billion yuan, a record high.
Combing through the 2021 annual reports of listed banks, we can see that in addition to the above-mentioned 13 banks that have issued announcements on the implementation of equity distribution, there are 27 A-share listed banks that distribute dividends "on the way" (that is, the implementation announcement of equity distribution has not been released yet). The total amount of dividends exceeded 503.5 billion yuan. Among them, Dahang is still the absolute main force.
Specifically, the six major banks, ICBC, Agricultural Bank, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank, plan to distribute a total of 382.193 billion yuan in dividends, accounting for 70% of the total dividend distribution in the banking sector. Among them, ICBC is still far ahead, with a proposed dividend amount of more than 104.5 billion yuan; the proposed dividend amounts of the three banks of China Construction Bank, Agricultural Bank of China and Bank of China are 91.004 billion yuan, 72.376 billion yuan and 65.06 billion yuan respectively.
However, Zheshang Bank and Zhengzhou Bank said they would not pay dividends. The management of Zheshang Bank said that the main reason for not paying dividends is that there are conflicts with the rights issue in terms of time and procedures, and the dividends will be considered as soon as possible after the completion of the rights issue.
According to the annual report of Bank of Zhengzhou, the non-dividend is mainly due to the following factors: In 2021, economic development will face many challenges. Banks will continue to benefit the real economy through measures such as lowering interest rates, reducing fees, and deferring loan repayment. certain influence. Bank of Zhengzhou said that retaining undistributed profits will help the bank to further enhance its risk resistance and improve its capital adequacy level.
18 listed banks have a dividend yield of over 5%
As a major dividend payer, the high dividend rate of listed banks has become the proud "homestead" of the banking sector. According to the data, based on the closing data on June 9, 26 A-share listed banks have a dividend yield of more than 4%, and 18 have a dividend rate of more than 5%.
This level of dividend yield is significantly higher than the yield of many wealth management products. According to the "Annual Report on China's Banking Wealth Management Market (2021)" disclosed by the Banking Wealth Management Registration and Custody Center, in each month of 2021, the weighted average annualized rate of return of bank wealth management products will be 3.97% at the highest and 2.29% at the lowest. Some investors sighed: "It is better to buy bank stocks than to buy bank wealth management products. Holding bank stocks with higher dividend yields for a year will ultimately yield better returns than wealth management products."
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. It is also a good choice for individual clients as part of a portfolio.
