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saving money is not as good as buying bank stocks? insight into the "bottom card" of bank stock dividends

2024-09-04

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[specifically, during this year's interim report season, some banks "spent a lot of money" on dividends. according to a review, the five major banks, industrial and commercial bank of china, china construction bank, agricultural bank of china, bank of china, and bank of communications, paid a total of 190.2 billion yuan in interim dividends, with dividend ratios close to 30%, making them the main force in dividends.]

[among the joint-stock banks, china citic bank and china minsheng bank also paid out interim dividends of more than 5 billion yuan.]

as the semi-annual report disclosure draws to a close, 11 listed banks including ping an bank and shanghai rural commercial bank have disclosed specific mid-term dividend plans. there is also a "red envelope rain" on the way. this year, the semi-annual reports of many listed banks such as jiangsu bank and shanghai bank clearly stated that the proposal for the mid-term profit distribution in 2024 will be announced separately.

the reporter noticed that the scale and proportion of bank dividends also reflect the performance of the bank to a certain extent. banks with stable performance and good capital adequacy ratio are more willing to increase the frequency of dividends and make large dividends, while banks with poor performance or low capital adequacy ratio are more "calculating" on dividends.

it is worth noting that high dividends are also one of the important factors that attract investors to bank stocks. since the beginning of this year, due to the rising risk aversion in the market, bank stocks with high dividends and low valuations have been favored by various funds, and their stock prices have continued to rise. although there have been continuous pullbacks recently, many institutional investors believe that the core logic of the rise of bank stocks has not changed for the time being, and stocks with low performance volatility and high dividends are still an important direction for capital allocation.

insight into the “trump card” of bank dividends

the semi-annual report disclosure is coming to an end. according to choice data, as of september 3, 11 banks including ping an bank, shanghai rural commercial bank, china construction bank, and china citic bank have disclosed specific mid-term dividend plans in their semi-annual reports. bank of jiangsu, bank of shanghai and many other listed banks mentioned in their semi-annual reports that they will announce the proposal for mid-term profit distribution in 2024 separately.