Cheap stocks but huge dividends

BCB shares of 397 Joint Stock Company are attracting the attention of many investors when the company announced the closing date for cash dividend at a rate of 29.19% (equivalent to 1 share receiving 2,919 VND). The closing date for the list of shareholders receiving dividends is May 30, the expected payment date is June 17.

Currently, BCB shares are priced at VND700, so the dividend is more than 4 times the stock price. Notably, in the session on May 27, BCB shares suddenly skyrocketed 40% to the ceiling after a long period of no liquidity. The reason this stock has a trading range of 40% is because according to the regulations on the UPCoM floor, after 25 consecutive sessions without trading, on the first day of resumption of trading, the applied price fluctuation range is ± 40% compared to the reference price.

Many stocks are cheap but businesses pay huge dividends

BCB shares were listed on UPCoM in October 2018. The company's main business is mining and collecting hard coal. BCB currently has a charter capital of VND57 billion with a fairly concentrated shareholder structure. In which, Dong Bac Corporation is the largest shareholder holding 51% of the capital.

This is not the only stock with a low price but high dividend. Another unit, Pho Yen Mechanical Joint Stock Company (stock code FBC), has just announced the documents for the 2024 Annual General Meeting of Shareholders scheduled to be held on June 11. In which, the Board of Directors proposed a record 2023 dividend of 200% in cash. If approved by shareholders, the company will spend 74 billion VND to pay dividends.

On the UPCoM floor, FBC shares have remained at VND3,700 for the past 2 years. Thus, the VND20,000 dividend will be 5 times higher than the market price of the shares. With a concentrated shareholder structure, Vietnam Engine and Agricultural Machinery Corporation (VEAM) holds 51% of the capital, FBC shares have almost no transactions on the UPCoM floor. In this dividend payment, VEAM can receive VND38 billion.

Or in mid-May, Phan Thiet Garment Export Joint Stock Company (stock code PTG) closed the shareholder list to pay the first cash dividend of 2024 at a rate of 50%, equivalent to 5,000 VND per share. The dividend that PTG paid to shareholders is 10 times the price of this stock currently trading on the UPCoM floor...

Source: https://thanhnien.vn/co-phieu-gia-beo-nhung-chia-co-tuc-khung-185240528162817174.htm