annual report disclosure has entered the final sprint stage, and the dividend route of listed companies has gradually become clear. As the "mainstay" of in the A-share market - bank stocks are still " cash cow ", with an average dividend yield of 3.83%, and the dividend yield of the two bank stocks exceeds 6%, killing bank wealth management in seconds.
top ten companies with dividends account for 7 seats
Whether from the absolute or relative value, banks are big players of A-share listed companies. Among the listed companies that have disclosed their annual reports, banks occupy 7 seats among the top ten companies with dividends, and the total cash dividend amount has from high to low: Industrial and Commercial Bank of China , Construction Bank, Agricultural Bank of China, Bank of China , China Shenhua , China Merchants Bank , Kweichow Moutai , Bank of Communications, Postal Savings Bank of China , China Life .
In recent years, the regulatory authorities have continuously improved the cash dividend system for listed companies, focusing on cash dividends and neglecting bonus and transfer, which has gradually become the main feature of profit distribution of A-share listed companies. According to data from the China Securities Regulatory Commission, the cash dividends (including share repurchase) of listed companies in 2020 are currently 1.43 trillion yuan, an increase of 9.16% from the previous year, and more than 4 times from ten years ago. The cash dividend rate of listed companies is stable at more than 30%, and the average dividend rate is above 2%, which is basically the same as the international level. If you only look at the banking sector, the dividend rate will be doubled directly, exceeding 4%, reaching 4.01%.
On April 27, Changsha Bank 2020 annual report was released. As of the end of 2020, the total assets were 704.235 billion yuan, an increase of 16.98% from the end of the previous year. At the same time, the asset quality of Changsha Bank has been optimized. As of the end of 2020, the non-performing loan ratio of was 1.21%, down 0.01 percentage points from the beginning of the year, and the provision coverage ratio of was 292.15%, up 12.17 percentage points from the beginning of the year.
Based on the above performance, Changsha Bank decided to pay a cash dividend of 3.2 yuan (including tax) to ordinary shareholders for every 10 shares, with a total cash dividend of 1.287 billion yuan, with a dividend ratio of 25.64%, the highest level in the past three years.
According to Changsha Bank's closing price on April 28, the bank's dividend yield has reached 3.5% (including tax), which is higher than most bank wealth management products.
In terms of total dividends, ICBC has the highest dividend payment, at 94.804 billion yuan; followed by China Construction Bank, at 81.504 billion yuan, and the two companies pay dividends of RMB 2.66 and RMB 3.26 for every 10 shares respectively.
The annual report of China Merchants Bank shows that its net profit in 2020 was 97.342 billion yuan, a year-on-year increase of 4.82%; operating income was 290.482 billion yuan, a year-on-year increase of 7.7%; basic earnings per share 3.79 yuan. It is planned to pay cash dividends to all registered shareholders, with a cash dividend of RMB 1.253 (including tax) per share, with a total dividend of RMB 25.848 billion. However, the dividend rate of China Merchants Bank is not satisfactory. According to the latest closing price, its dividend rate is 2.96%, which is lower than the average level.
Fund layout dividend market
From the perspective of dividend yield, among the banks that have disclosed their annual reports, two listed banks have dividends of more than 6%, namely Bank of Communications and Bank of China. According to the closing price on the 28th, Bank of Communications has reached 6.51%, and Bank of China has reached 6.06%, which has instantly won the yield of most bank wealth management products.
The dividend yield of Ping An Bank , Ningbo Bank and Xiamen Bank , respectively, at 0.78%, 1.2% and 1.99%. Specifically, the reason for the low dividend yield of Ping An Bank and Ningbo Bank is mainly because the secondary market is more popular and the stock price is strong, resulting in the larger denominator and diluting dividends.
0 Wanlian Securities analyst Guo Yiri believes that the asset quality of listed banks is still in a continuous improvement channel. Some banks maintain the stability of net interest margin by increasing the proportion of high-yield assets and the proportion of current deposits. In terms of asset quality, the overall situation is still in a channel for continuous improvement. Some banks are still forward-lookingly increasing the provisions for provisions to improve their risk compensation capabilities. From an annual perspective, we predict that the overall performance growth of the sector will remain stable and that the valuation of companies with continuous optimization of their business structure is expected to improve.
CICC research report stated that in terms of capital adequacy, banks have gradually enriched their financial tools for replenishing capital in recent years, especially many banks have previously launched capital replenishing tools such as perpetual bond , convertible bonds, and preferred stock .From the perspective of dividend rate, the dividend rate of large banks is around 30%, and the dividend rate of small and medium-sized banks is generally 20%-30%. Although affected by the epidemic, domestic banks are still growing rapidly overall and may need to expand retained income. Therefore, the dividend rate is lower than that of foreign banks, but the dividend rate is relatively stable and is gradually increasing.
Due to the extremely high dividend rate, the fund also actively increased its holdings in bank stocks in the first quarter and laid out dividend market conditions. As of April 25, the first quarter report of public funds has been disclosed, and the pricing power of A-shares continues to rise. As of the end of the first quarter of 2021, the market value of public funds' holdings rose to 545,03.26 trillion yuan, accounting for 8.53% of the total A-share market value of circulating , which exceeded about 0.28% in the fourth quarter of last year, and continued to set a new high in recent years. In the first quarter, the three industries that actively increased their positions in equity-oriented fund were: banking (1.99%), media (1.27%) and chemical (0.69%). The three industries that ranked first in terms of reduction were: electrical equipment (-1.80%), food and beverage (-0.95%) and non-bank finance (-0.75%). The bank stock with the largest market value currently held by the fund is China Merchants Bank.
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