According to data from the China Banking and Insurance Regulatory Commission , as of the end of 2020, there were 4,601 banking financial institutions in my country, including 54 listed banks, specifically including 15 A+H share listed banks and 23 pure A share listed banks. , 16 pure H-share listed banks. Banking stocks should be the most stable industry stocks based on the current performance of the entire stock market, but this stability refers to stabilizing at low values. When the market rises sharply, bank stocks rise slightly; when the market falls sharply, bank stocks fall slightly. . It can even be directly said that the long-term performance of the stock prices of bank stocks is relatively sluggish. Many people find it difficult to understand that as the most profitable industry stocks in the stock market, if we look at performance alone, bank stocks should have just soared into the sky, but the market has not. Why is this?
What is the reason for the depressed stock prices of bank stocks?
The performance of bank stocks is actually not inferior to that of liquor stocks, but compared with liquor stocks, the stock prices of bank stocks are really not worth mentioning. The reason for this is mainly due to the following two factors: First, investors who buy bank stocks do not Speaking of all, at least most of them are long-term investors. The main reason for this is that bank stocks have always had the characteristics of generous dividends, which can bring additional cash income to investors. Some prudent investors are more willing to hold bank stocks as new positions for the long term, and they do not care much about the short-term rise and fall of bank stocks; secondly, the bank stock sector is large in size, so general hot money and institutions No one will speculate in such stocks because they can't be pulled. If they can't be pulled, the short-term profits will not be high. Without these hot funds and institutions that make the market, the stock prices of bank stocks will be relatively stable. The above two factors together make it difficult for the current stock prices of bank stocks to rise sharply.
Can fixed deposits win against dividends?
Since the stock prices of bank stocks are difficult to rise, it is difficult for investment banking stocks to enjoy the benefits of rising stock prices in a short period of time. So can considerable returns be obtained by relying on dividends during this period? If possible, would you choose to use your money to buy bank stocks directly instead of time deposits?
As shown in the figure above, we can see that most banks basically pay dividends year by year. The three banks that do not pay dividends year by year also have special reasons. Among them, Bank of Nanjing did not pay cash dividends in 2014 because it did not affect the private placement. progress. China CITIC Bank did not pay cash dividends in 2010 and 2014 because it did not affect the progress of private placement and rights issue respectively; Ping An Bank did not pay dividends from 2009 to 2011 because of the merger and acquisition of Shenzhen by "She Tun Xiang" during this period. development bank. Therefore, regardless of special factors, it can be said that every bank pays dividends year by year. Below we take China Merchants Bank as an example, investing 100,000 yuan in principal. Since 2010, its dividends have been reinvested, and the final dividend income is: 79813 Yuan.
If it is 100,000 yuan, deposited in 2010, it will be 11 years until this year. We calculate based on the financial interest rate of 4%. The total interest earned after 11 years will be: 100,000 yuan* (1+4%)^11-100,000 Yuan = 53,945 yuan. It can be seen that the amount of dividends from bank stocks has far exceeded the interest income obtained from direct deposits in banks.
If you look at the stock price, although the increase is not huge, it can be considered an increase. The 100,000 yuan invested in 2010 turned into holdings of 11,100 shares and a cash balance of 5,162 yuan 11 years later. According to the current stock price of 56.4 yuan, the total value of 11,100 shares is: 11,100*56.4=626,040 yuan, plus the 5,162 yuan in cash held, the total is 631,202 yuan, which is 4 higher than the 153,945 yuan deposited in the bank. 1 times (some people may think that the stock price rise is exaggerated, but in fact, if you look at Moutai , look at CATL , etc., you will find that the stock price increase of bank stocks is really touching. In 2010, Moutai The stock price of Ningde Times is almost 40 yuan/share, and now it is 2,100 yuan/share; Ningde Times was listed in 2018, and the issue price was 25.14 yuan/share at that time, and now Ningde Times is 476 yuan/share. In comparison, the bank’s stock price is extremely depressed) .
Summary
If you pursue long-term investment and do not pursue short-term profits, bank stocks are definitely a very good choice. Bank stocks are not only safe (there is basically no possibility of ST or even delisting), Moreover, the high annual dividends can be compared with the regular income of banks. Furthermore, in the long run, the stock prices of bank stocks will eventually rise. Although not as high as that of other companies, they are more stable. In addition, once you participate in the new lottery during the holding period, , then you will make more profits, so for long-term investment, you can consider bank stocks!
