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Vietnam investors show strong interest in dividends at shareholder meetings

Vietnam investors show strong interest in dividends at shareholder meetings

Investors are now eagerly seeking 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.

Nguyen Hoang Thai, an investor from Hanoi, 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 said.

Ba Ria Thermal Power Joint Stock Co was expected to finalise the list of eligible shareholders to receive dividends at an unprecedented rate of 26.47%. The company plans to allocate 160 billion dong for the distribution, with payments beginning on March 29.

Cholimex Food Joint Stock Company intends to provide an interim cash dividend payment for 2023, amounting to 50%. With 8.1 million outstanding shares, the company expects to distribute approximately 40.5 billion dong on May 10, 2024. Their annual shareholders’ meeting is scheduled for April 24.

Bien Hoa Packaging Joint Stock Co will hold its annual shareholders’ meeting for 2024 on March 29.

The agenda includes approving a cash dividend distribution plan of 26% for 2023.

The company will present its business plan for 2024, aiming for a revenue target of 71 trillion dong and a post-tax profit exceeding 154 billion dong. These figures represent a 14% and 17% 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 PetroVietnam Power Nhon Trach 2 JSC, Binh Minh Plastic Joint Stock Co and FPT Corp,” 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 plans to allocate at least 20% of its pre-tax profit for 2023, equivalent to 4%-5% of its equity, for cash dividend distribution.

However, many banks still plan to distribute dividends in the form of stock. Vietcombank intends to utilise its post-tax profit and reserves for 2022, totalling 21.68 trillion dong, to distribute stock dividends.

This distribution would amount to 38.79% of its charter capital, resulting in the issuance of 21.7 billion shares.

The bank achieved post-tax profit of 33.05 trillion dong in 2023, reflecting a 10.5% 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 A Bank, a newcomer to the banking sector, recently indicated its intention to maintain a 20% dividend rate.

However, the bank plans to primarily distribute dividends in the form of stock to bolster its equity and enhance financial capacity. Nam A Bank forecasts a pre-tax profit of four trillion dong in 2024 and five trillion dong in 2025.

Tran Hoang Son, market strategy director at VPBank Securities Co, noted that aside from dividend potential, the banking sector’s high profitability and stable growth continually attracts investors’ interest.

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