The A-share market is experiencing a mid-term dividend "mini high tide," with a noticeable increase in the number of listed companies that have announced mid-term dividend plans, among which companies from the STAR Market and securities firms are typical representatives.
In addition, several securities firms have raised their dividend ceilings, attracting market attention. For instance, Dongwu Securities has increased its dividend ceiling to no more than 50% of net profits.
Analysts have indicated that regular dividends from listed companies help to boost investor confidence, and dividends from financial institutions have an even greater market demonstration effect.
The number of companies with mid-term dividends has increased significantly
According to data from Wind, as of June 20, 92 listed companies have announced mid-term dividend plans for 2024; in addition, according to incomplete statistics from reporters, another 226 companies have indicated that they will make arrangements for mid-term dividends in 2024, bringing the total number to 318. The number of listed companies implementing mid-term dividends from 2019 to 2023 were 128, 174, 186, 138, and 194, respectively.
Advertisement
Among them, the dividend plans of six companies, including Zhongnan Media, Cambridge Technology, Yindou Shares, Marubi Shares, Guodian Nari, and Liding Optoelectronics, have been approved by the shareholders' meeting.
Moreover, more than 30 companies from the STAR Market have joined the ranks of mid-term dividend payers, a number that far exceeds previous years.
For example, Fudan Zhangjiang announced that if the company is profitable in the first half of 2024 and meets the conditions for cash dividends, the company plans to increase a mid-term dividend when the semi-annual report for 2024 is disclosed. It is expected that the cash dividend amount for the first half of 2024 will not be less than 10% of the net profit attributable to the shareholders of the listed company for the corresponding period, and will not exceed the net profit attributable to the shareholders of the listed company for the corresponding period.
Aopu Mai, a leader in domestic high-end culture media, stated that it plans to increase a mid-term dividend when the semi-annual report for 2024 is disclosed, with an expected cash dividend amount of not less than 25 million yuan for the mid-term of 2024. The company's net profit for the first quarter was 19.58 million yuan.
In addition to complying with regulatory policies, Zeng Hengwei, a wealth manager at Paipai Network, told reporters from Yicai that the reasons for the dense dividend distribution by listed companies at this time also include optimizing the capital allocation and capital structure of listed companies, conveying a signal of stable company operations, enhancing investor confidence, meeting investor needs, enhancing the competitiveness of listed companies in the market, thereby increasing investor recognition and the market appeal of listed companies.Additionally, First Financial Daily reporters have noticed a surge in the number of listed securities firms planning mid-term dividends. Data shows that more than 40 listed securities firms have mentioned mid-term dividend matters, with several companies announcing detailed mid-term dividend plans.
Looking back over the past five years, there have been relatively few securities firms that have distributed dividends mid-term. Data from Choice Statistics indicates that from 2019 onwards, the number of listed securities firms that conducted mid-term dividends were only 3, 2, 4, 2, and 1 respectively.
In addition to the sharp increase in the number of listed companies releasing mid-term dividend plans, the timing of the release of these plans has also been significantly advanced this year. In previous years, the disclosure of dividend plans typically began at the end of July, but this year, starting from March 12th, some listed companies began to pre-disclose or propose mid-term dividend matters, with 86 companies announcing mid-term dividend plans in April.
Some securities firms are "generous" with dividends. In terms of the amount of cash dividends per share, among the six companies that have disclosed the cash dividend amount per share, Yindu Shares is the most generous. The company has set a cap of 5 yuan (including tax) for every 10 shares, and will distribute cash dividends to all shareholders.
Wanmei Shares' 2024 mid-term dividend plan shows that, based on the condition of meeting the dividend distribution, the amount of mid-term dividends will not exceed 60% of the net profit attributable to the shareholders of the listed company for the period. In the first quarter of 2024, both the revenue and net profit of Wanmei Shares grew by about 40% year-on-year.
As for the total amount of dividends, Zhejiang Smart Bio-Pharmaceutical Co., Ltd., Yindu Shares, Zhongnan Media, and Bohai Ferries plan to distribute cash dividends of over 100 million yuan, with Zhejiang Smart Bio-Pharmaceutical Co., Ltd. temporarily leading the list with a dividend amount of 479 million yuan.
For example, among the securities firms that have disclosed mid-term dividend details, Dongwu Securities has set a higher cap for the dividend ratio, stating that "the total amount of cash dividends does not exceed 50% of the net profit attributable to the shareholders of the parent company in the consolidated statement for the period."
CITIC Securities' total mid-term cash dividend for the year 2024 will not exceed 40% of the net profit attributable to the ordinary shareholders of the parent company for the period. First Capital Securities also stated that the cap will not exceed 40%. Zhongxin Securities and Guohai Securities announced in their statements that the mid-term dividend ratio will not exceed 35%.
The cap on the dividend ratio for Founder Securities, Cinda Securities, and Caitong Securities is relatively lower. Specifically, Founder Securities stated that the profit for the first half of 2024 and the dividend ratio will not exceed 10% of the net profit attributable to the company's shareholders for the period. The cap for Cinda Securities and Caitong Securities is 20%.Some securities firms have clearly set a cap on the dividend amount. China Merchants Securities announced that it has requested the shareholders' meeting to authorize the board of directors to decide on the company's mid-term profit distribution plan for 2024, with an amount not exceeding 880 million yuan.
Nanjing Securities stated that the total amount of cash dividends for the mid-term of the fiscal year 2024 will not exceed the net profit attributable to the shareholders of the listed company during the corresponding period, and the maximum will not exceed 180 million yuan.
Zeng Hengwei told reporters from Yicai that financial institutions have strong profitability, and their inherent profitability can support high dividends. Dividends also help to smooth the cyclical fluctuations in the financial industry. In addition, dividends from financial institutions can also serve as a market demonstration effect.
Comments