Buying stocks means buying a company, that is, doing business in partnership with the company. However, we only need to pay money and wait for dividends every year without having to participate in the actual operation of the company. This leads to an investment method - the dividend rate investment method.
On March 16, Fangda Special Steel released its profit distribution plan for 2020: a cash dividend of 11 yuan per 10 shares, with a total dividend of nearly 2.4 billion yuan. If this dividend amount is not outstanding among the big A shares , then the cash dividend ratio is as high as 111%.
Generally speaking, the company will retain a part of the profit for the company's redevelopment. Like Fangda Special Steel , it not only divides all the profits in 2020, but also divides more, which is rare. So, is square special steel worth investing?
01 dividend rate investment method
"dividend" can be understood literally, that is, the interest of stocks. It is a dividend issued by listed companies to shareholders. The dividend rate can be understood as the "interest rate of stocks", which is similar to the bank interest rate. The calculation formula is: Dividend rate = dividend/share price .
For example, square-large special steel gives a dividend of 11 yuan per 10 shares, that is, a dividend of 1.1 yuan per share. It closed at 9 yuan on May 19. Then yesterday, the dividend yield of square special steel = 1.1/9 = 12.22%. Such a high dividend yield is indeed rare in large A-shares.
Dividend rate investment method is to select stocks according to the dividend yield. However, there must be a prerequisite: the dividends of listed companies in should be stable. cannot be said to have fishing for two days or drying the net for three days. I will have a lot of shares this year, but I won’t be divided next year.
has this premise because if we want to make a profit from the dividend yield investment method, our holding period is long, and it will be long until the dividend of this company has undergone a significant change, or the company's fundamentals will become worse, which is not within our choice.
For example, Fangda Special Steel 's dividend yield this year is 10%, which seems to be several times the bank's interest rate. However, in the past few years or next year, its dividend yield is only 5% or 6%, which is very unstable. At this point, it is not suitable for investment. Should I buy
02 square-large special steel ?
dividend rate investment method is suitable for square special steel ? It depends on whether its annual dividends are stable. The following figure shows the annual dividends of Fangda Special Steel since 2013:
From the figure, we can see that the annual dividends of Fangda Special Steel are not stable. In 2016, the dividend per share was 0.252 yuan, and soared to 1.6 yuan in 2017. In 2019, the cash dividend was simply abandoned and the method of high bonus and transfer to was adopted.
You may say, this year is so high, can’t you buy this year’s one? Don’t forget that there is also dividend and dividend tax, we have to pay taxes. The current tax rate is that the shareholding period exceeds one year is exempted from levy; 10% is levyed from 1 month to 1 year; and 20% within 1 month.
Does only dividend dividend tax? Not only that, there are also various transaction costs, such as stamp duty, transfer fees, commissions, etc. These expenses, calculated in a variety of ways, will consume a lot of profits. If you just want to get dividends, it is unnecessary.
was written at the end
In fact, the dividend rate investment method provides us with a path to realize financial freedom.
If our annual expenditure is 100,000 yuan, then when we find a listed company with a dividend yield of 5% and a stable dividend, we only need to buy 10/0.05=2 million, and we will achieve basic financial freedom. So, make money!
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