Investors show strong interest in dividends at annual shareholders' meetings
According to analysts, when selecting stocks for dividend income, investors should consider various factors such as the company's dividend payment history, cash flow, revenue, profit, industry prospects and macro-economic outlook.
Investors eagerly seek information on companies' dividends during the annual shareholders' meetings. High dividend distributions often attract significant capital inflows, leading investors to carefully analyse the related documents.
Nguyễn Hoàng Thái, an investor from Hà Nội, expressed his enthusiasm for the shareholders' meeting season.
"I often review shareholders' meeting documents and other company announcements to identify investment opportunities and adjust my portfolio. I particularly seek out companies expected to offer high dividend yields," he told tinnhanhchungkhoan.vn.
Ba Ria Thermal Power Joint Stock Company (BTP) was expected to finalise the list of eligible shareholders to receive dividends at an unprecedented rate of 26.47 per cent. The company plans to allocate VNĐ160 billion (US$6.5 million) for this distribution, with payments beginning on March 29.
Cholimex Food Joint Stock Company (CMF) intends to provide an interim cash dividend payment for 2023, amounting to 50 per cent. With 8.1 million outstanding shares, the company expects to distribute approximately VNĐ40.5 billion on May 10, 2024. Their annual shareholders' meeting is scheduled for April 24.
Biên Hoà Packaging Joint Stock Company (SVI) will hold its annual shareholders' meeting for 2024 on March 29. The agenda includes approving a cash dividend distribution plan of 26 per cent for 2023. The company will present its business plan for 2024, aiming for a revenue target of VNĐ1.71 trillion and a post-tax profit exceeding VNĐ154 billion. These figures represent a 14 per cent and 17 per cent increase, respectively, compared to 2023.
"I view dividend-earning stocks as safe long-term investments. I appreciate the comfort and reassurance of receiving rewards without the stress of timing the market, which short-term traders often experience. I prefer reliable dividends, such as NT2 (PetroVietnam Power Nhơn Trạch 2 JSC), BMP (Bình Minh Plastic Joint Stock Company (BMP) and FPT (FPT Corporation)," said another investor.
The banking sector has also drawn significant attention from investors in terms of dividends. This year, several banks are expected to distribute cash dividends after several years of offering stock dividends. For example, Techcombank (TCB) plans to allocate at least 20 per cent of its pre-tax profit for 2023, equivalent to 4-5 per cent of its equity, for cash dividend distribution.
However, many banks still plan to distribute dividends in the form of stock. Vietcombank (VCB) intends to utilise its post-tax profit and reserves for 2022, totalling VNĐ21.68 trillion, to distribute stock dividends. This distribution would amount to 38.79 per cent of its charter capital, resulting in the issuance of 21.7 billion shares.
Vietcombank achieved a post-tax profit of VNĐ33.05 trillion in 2023, reflecting a 10.5 per cent increase compared to the previous year. The bank will finalise the list of shareholders on March 26 and hold its annual shareholders' meeting for 2024 on April 26.
Nam Á Bank (NAB), a newcomer to the banking sector on HOSE, recently indicated its intention to maintain a 20 per cent dividend rate. However, the bank plans to primarily distribute dividends in the form of stock to bolster its equity and enhance financial capacity. Nam Á Bank forecasts a pre-tax profit of VNĐ4 trillion in 2024 and VNĐ5 trillion in 2025.
Trần Hoàng Sơn, the Market Strategy Director at VPBank Securities Company, noted that aside from dividend potential, the banking sector's high profitability and stable growth continually attracted investors' interest. Sơn predicted that bank stocks would be among the primary drivers of market growth in the stock market this year.
Various factors to consider
According to analysts, when selecting stocks for dividend income, investors should consider various factors such as the company's dividend payment history, cash flow, revenue, profit, industry prospects and macro-economic outlook.
Several sectors are expected to experience growth in 2024, including retail, infrastructure investment and securities. This growth is driven by favourable policies and positive economic prospects.
In the retail sector, the overall retail sales of goods and consumer service revenue in the first two months of 2024 have shown modest growth compared to the same period in 2023. However, stocks like FPT Retail Corporation (FRT), Phú Nhuận Jewelry Joint Stock Company (PNJ), and Mobile World Investment Corporation (MWG) have recently attracted investors, leading to price increases.
PNJ, in particular, is recommended by KB Vietnam Securities Company as an investment option for March 2024. This recommendation is based on the long-term growth potential of the jewellery market, the company's expansion of store networks, and efforts to attract new customers and improve store revenues.
In terms of infrastructure investment, companies in sectors such as steel, construction materials and construction are expected to benefit from increased infrastructure spending. The disbursement of funds for infrastructure projects has shown a significant increase in the first two months of 2024 compared to the same period last year. Additionally, declining interest rates are expected to reduce financial costs for these companies.
The securities sector is supported by prospects of market upgrades and the launch of the KRX system, which is expected to enhance market operations.
Nguyễn Thế Minh, Director of Individual Customer Analysis at Yuanta Vietnam Securities Company, predicted a brighter economic outlook for 2024. He cited Việt Nam's attractiveness as a destination for foreign investment and the positive business activities in the country.
"Foreign investors have shown increased net buying activities in the stock market, indicating their confidence in the growth potential of the Vietnamese stock market," he said.
This year's shareholder meetings are expected to be vibrant as investor confidence continues to strengthen. With low-interest rates and increased capital inflows, the focus will be on companies with promising business prospects and strong fundamentals. — VNS
