Stock price is only 700 VND but dividend is 15,000 VND

Today (May 9), Phan Thiet Garment Export Joint Stock Company (stock code PTG) closed the list of shareholders to receive the second dividend of 2024 in cash at a rate of 100%, equivalent to 10,000 VND per share. The company plans to pay dividends on June 13.

With nearly 5 million shares in circulation, PTG is expected to spend VND50 billion to complete the payment to shareholders. Previously, in June 2024, the company paid the first cash dividend in 2024 at a rate of 50%/share, equivalent to shareholders owning 1 share receiving VND5,000. In total, the company will pay cash dividends for 2024 at a rate of 150%, equivalent to VND15,000 per share.

The stock price is only 700 VND but Phan Thiet Garment Export Company pays a dividend of 15,000 VND.

PHOTO: NGOC THANG

Notably, on the stock exchange, PTG shares are priced at only VND700/share. Thus, shareholders will receive more than 21 times the 2024 dividend. However, this stock has always been illiquid and has no transactions. The most recent transaction, which involved only 100 shares, brought the PTG price from VND500 to VND700 in mid-August 2024.

In 2024, Phan Thiet Garment Export Company achieved revenue of more than 488 billion VND, nearly 4% lower than the target, but after-tax profit was more than 52 billion VND, exceeding the planned target by 15%. The company used almost all of its profits to pay dividends to shareholders. Entering 2025, PTG plans to have revenue of nearly 525 billion VND and after-tax profit of more than 49 billion VND.

Over the past 5 years, PTG has maintained a steady high cash dividend of 100-120%, equivalent to VND10,000-12,000 per share. This is the reason why shareholders have held on to their shares without selling them, causing the shares on the stock exchange to lose liquidity. According to the 2024 annual report, members of the Board of Directors, the company's management board and their relatives have accounted for nearly 65% ​​of the outstanding shares.

Thus, outside investors cannot buy PTG shares to "hunt" for high dividends when no one is selling.

Source: https://thanhnien.vn/co-phieu-gia-chi-700-dong-nhung-co-tuc-15000-dong-185250509081059664.htm