Cheap tea stocks pay huge dividends

Some listed companies, despite their low "ice tea" stock prices, regularly pay huge dividends.

It cannot be compared to the dividend of more than 21 times the stock price of Phan Thiet Garment Export Joint Stock Company (stock code PTG), but some other companies also pay out dividends generously. For example, Hai Phong Funeral Service Joint Stock Company (stock code CPH) just announced on May 16 that the transaction is not entitled to pay cash dividends in 2024.

Some companies pay dividends many times higher than the stock price.

PHOTO: NGOC THANG

The dividend payout ratio of CPH is 19.6%, meaning that shareholders owning 1 share will receive 1,960 VND. With 4.4 million shares in circulation, the company will spend nearly 8.6 billion VND on this dividend. Notably, CPH shares on UPCoM are only trading at 300 VND/share. Thus, the dividend is more than 6.5 times the market price and this is one of the rare enterprises with a dividend payout rate many times higher than the share price. Since 2015, Hai Phong Funeral Service Joint Stock Company has maintained a cash dividend policy of about 8-20% per year.

CPH shares have also fallen into a state of illiquidity, with no transactions in the past due to concentrated shareholders. Currently, nearly 80% of CPH shares are held by 3 major shareholders, including: Hai Phong City People's Committee holds 64.5% of charter capital, Hoang Phat Construction Investment and Trading Company Limited holds 10% of capital, Mr. Nguyen Hong Le - Chairman of the Board of Directors of the company holds 5.33% of capital.

Another company, Dong Bac Coal Transport and Processing Joint Stock Company (stock code VDB), announced on May 12 that it will close the list to pay 2024 cash dividends at a rate of 35.66%. Equivalent to shareholders owning 1 share will receive 3,566 VND. With nearly 8.7 million shares in circulation, it is estimated that the company will spend nearly 31 billion VND.

VDB shares are also priced at VND900. Thus, the dividend is 4 times higher than the share price. Similar to CPH shares, CDB stock code is also in a state of illiquidity when the parent company, Dong Bac Corporation, holds 51% of the capital; Dong Bac Shipbuilding Industry Joint Stock Company owns 10% and then internal shareholders...

Or shareholders of Pho Yen Mechanical Joint Stock Company (stock code FBC) are also looking forward to the upcoming 2024 dividend season. At the end of 2024, this company will pay a cash dividend for 2023 at a rate of 200%, equivalent to 20,000 VND per share. Meanwhile, FBC's share price is only 3,700 VND and the dividend is 5.4 times the market price.

Last year, FBC had a profit after tax of nearly 76 billion VND, an increase of 4% compared to 2023 and recorded the highest profit after tax ever, nearly double the charter capital. This makes shareholders hope to continue to receive high dividends. Since starting trading in 2017, this enterprise has always paid high and regular cash dividends to shareholders from 30 - 65% per year, the dividend in 2022 is up to 120% and in 2023 is up to 200% - a record high in the history of the enterprise's operations.

Currently, FBC stock price remains unchanged at VND3,700 due to no transactions. Vietnam Engine and Agricultural Machinery Corporation (VEAM) holds 51% of the capital.

Source: https://thanhnien.vn/co-phieu-gia-tra-da-chi-tra-co-tuc-khung-185250511161600739.htm