6 22nd Wuliangye disclosed the company's 2021 annual equity distribution implementation announcement, which showed that based on the total share capital of 3,881.608 million shares, a cash of 3.023 yuan per share was distributed to all shareholders, totaling 11.734 billion yuan, accounting for 10% of the net profit attributable to the parent for the same period. The ratio is 50.19%.
Judging from the dividend amount of Wuliangye in the past five years, it has increased year by year.
This steadily increasing amount of cash dividends is as stable as its performance data. However, some investors may be a little confused: Why has its dividend rate been reduced year after year? In fact, if the annual dividends of the stocks you hold are increasing, but the dividend rate is decreasing, then you should be happy, because the stock prices have continued to rise in these years.
During this period, Wuliangye’s pre-rights share price was as low as 39.58 yuan and as high as 354.61 yuan.
On the contrary, if the dividend rate of a stock increases year by year, it may be that its stock price does not rise or even falls. For example, the stock prices of Industrial and Commercial Bank of China before the restoration of rights have fluctuated sideways for 4 years.
However, despite the huge amount of Wuliangye's dividends, many investors believe that the dividends are "bad" information. On the Internet, some investors said: "...it has been falling in the past few days, but it will rise again after dividends are paid, so patience is very important." "Dividends will fall sharply again, and taxes will need to be paid after trading after dividends are paid out, which will lead to a sharp fall."
Indeed, for short- and medium-term operators, individual stocks will ex-rights after cash dividends, causing the stock price to "fall". And based on the length of holding time, a certain proportion of dividend tax is paid when selling. For some investors, dividends seem to “cut off” part of the value of their stock holdings and give them to use as cash, while the total account assets remain unchanged.
However, cash dividends are meant to encourage long-term investment. After all, dividends held for more than one year are exempt from tax. Therefore, for long-term holders, you can use dividends to cover your positions in individual stocks, spread the low price, and accumulate accumulated wealth.
But most investors are basically short- and medium-term operators. They are more concerned about the stock price fluctuations of individual stocks and use the stock price difference to obtain profits. For example, northbound funds are generally in a state of reducing their positions in Wuliangye after entering June.
However, this did not stop Wuliangye’s stock price from rising slowly. Because Wuliangye, as a traditional excellent value investment stock, has always been deeply loved by value investors, although its stock price has corrected 48.77% since its high point. However, for true value investors, falling stock prices make individual stocks "cheaper" and more valuable. The current dynamic price-to-earnings ratio of Wuliangye is 16.29 times, the current price is 181.66 yuan, and the total market value of the stock is 705.1 billion yuan.
The market is sometimes like this. If it is underestimated, it will not necessarily rise, and if it is overvalued, it will not necessarily fall. Just like Wuliangye, although its valuation has been "digested" a lot when it was at a higher point, and as its performance continues to rise in the future, its valuation will continue to be squeezed out. However, it's hard to tell whether it will rise or fall in the short term.
However, lengthen the time period to measure the time period of a true value investor: in 10 years, when Wuliangye’s future performance will remain as stable as ever, its current stock price position should be considered to be relatively low area.
A major core of value investment is long-term investment. This "long-term" is not just spoken in words, it is achieved step by step. However, I don’t know how many people will make it to the end!
Risk warning: The opinions in this article are for reference only. Investment is risky, so be cautious when entering the market!
