Real estate businesses are busy paying dividends
In recent analysis reports, many research units have commented that the real estate market is receiving positive signals. The market is changing, many businesses are also planning to pay dividends to shareholders after a long period of silence.
Vietnam Exhibition Fair Center Joint Stock Company (VEFAC - stock code: VEF) is the enterprise that announced the highest dividend payment plan to shareholders in the market.
Accordingly, the company plans to pay a total dividend of up to 435% in cash, equivalent to VND43,500/share. Of which, the 2024 dividend is 135% (VND13,500/share), taken from the accumulated undistributed profit up to the end of 2024 and the interim dividend for the first quarter of 2025 is 300% (VND30,000/share), paid from the after-tax profit of the first quarter of the year.
The last registration date is June 13. The expected payment date is July 4. With more than 166.6 million shares outstanding, the total amount VEFAC needs to spend for this dividend is estimated at VND7,247 billion.
Another business that has prospered thanks to real estate has just announced a generous dividend payment: Hanoi Transformer and Electrical Materials Manufacturing Joint Stock Company (stock code: BTH).
This company plans to pay cash dividends in 2024 of up to 260%. Specifically, the company will divide into 2 dividend periods of 10% and 250%, equivalent to 25 billion VND and 625 billion VND respectively. The expected time to pay dividends to shareholders is November this year.
Another company that pays a large dividend is the Industrial Urban Development Joint Stock Company No. 2 (stock code: D2D). Accordingly, the company pays a cash dividend at a rate of 84%, meaning each share receives VND8,400. With more than 30.2 million shares in circulation, the company spent more than VND254 billion on dividends.
In 2023, this company will also pay dividends at a rate of 87%. In 2022, the dividend payment rate will be 30%.
Some real estate businesses pay large dividends (Chart: Moc An).
For Dat Phuong Group Joint Stock Company (stock code: DPG), after 2 years of paying a 10% cash dividend, this year the company will pay an additional 60% stock dividend. The total dividend payment for shareholders in 2024 is 70%.
The group of industrial park real estate enterprises has also paid dividends quite regularly over the past few years.
For example, Sonadezi Long Binh Joint Stock Company (stock code: SZB) has maintained a cash dividend payment rate of over 30% from 2022 to present. Even in 2024, the company planned to pay a dividend of 35% but the actual rate was 40%. The company plans to pay a dividend of 35% in 2025 according to the Resolution of the 2025 Annual General Meeting of Shareholders announced in April.
Similarly, IDICO Corporation - Joint Stock Company (IDICO - stock code: IDC) said it will pay 2024 dividends in cash at a rate of 35% and in shares at a rate of 15%. Of which, the company has provisionally paid 20%, equivalent to nearly 660 billion VND, to pay cash dividends to shareholders, the remaining dividend rate is 15% (nearly 495 billion VND) and 15% in shares. Two years ago, this company generously paid cash dividends of up to 40%. In 2025, the company plans to pay 35% dividends from after-tax profits in 2025.
Recently, Khang Dien House Investment and Trading Joint Stock Company (stock code: KDH) announced its plan to issue shares to pay dividends in 2024 to existing shareholders and issue shares under the employee stock option program (ESOP). The dividend payment rate in shares is 10% - similar to previous years.
Businesses are generous as profits soar
Dividends are the profits that a company shares with its shareholders, calculated based on the number of shares they own. Dividends are the way a company distributes a portion of its operating profits to its shareholders. The main purpose of this is to help shareholders receive a return on their investment in the company.
The two common forms of dividends currently paid by businesses are cash and stock (bonus shares). Of these, cash dividends are preferred by investors because this is “fresh money, real rice” in their accounts. Companies that are able to pay cash dividends regularly are also considered good companies when they generate enough free cash flow to pay dividends.
In 2024, many businesses recorded extraordinary profits. For example, VEFAC recorded cumulative revenue in 2024 at VND 4.6 billion, down 48.8% compared to 2023. However, VEFAC's after-tax profit reached more than VND 942 billion, 2.2 times higher than in 2023.
Similarly, in 2024, Hanoi Transformer and Electrical Materials Manufacturing Joint Stock Company recorded more than VND 1,814 billion in total net revenue, 1,723 times higher than in 2023. Profit after tax was VND 708 billion, 6,743 times higher than VND 105 million in 2023.
Industrial Urban Development Joint Stock Company No. 2 also had good business growth results in 2024. The company recorded revenue of more than 346 billion VND, an increase of 78%. In the whole year of 2024, this unit earned a profit of more than 88 billion VND, 3.4 times higher than in 2023 and double the set target.
In recent years, Vietnam has emerged as a bright spot in attracting FDI. The industrial real estate industry has benefited from this and achieved positive business results. Typically, many listed enterprises in this industry have grown impressively.
For example, IDICO recorded revenue in 2024 of more than VND 8,846 billion, an increase of 22% over the same period. Profit after tax for the whole year of 2024 was recorded at more than VND 2,392 billion, an increase of more than 44% compared to 2023. This is also a record profit for this enterprise.
Opportunity to increase capital when the market is rising
Unlike cash dividends, bonus stock dividends are chosen by companies that are in the process of development and want to reinvest in business operations.
This method allows the company to retain a portion of its profits to expand its operations, rather than paying them out in cash. When using this method, the company can issue new shares or use treasury shares (if any) to pay dividends to shareholders.
A special point when paying dividends by shares is that the company does not need to carry out procedures to issue or sell shares to the market. Instead, the company only needs to increase its charter capital corresponding to the total par value of the shares used to pay dividends after completing the payment.
History shows that when the market is in an uptrend, the real estate industry attracts cash flow and is also an opportunity for many businesses to pay dividends in stocks.
Data from Vietcap Securities Company shows that the Vn-Index increased by about 3% in the first 5 months of the year. However, real estate stocks increased by 45.2% - the highest among all sectors.
Real estate stock prices have increased sharply since the beginning of this year (Source: Vietcap).
Cash flow into real estate stocks comes from expectations of positive business prospects. Agribank Securities Company assesses that there are 3 main factors supporting the market recovery: Stable home loan interest rates; Policies/documents to remove legal obstacles; Promoting public investment and infrastructure development.
Lending interest rates are expected to remain stable at low levels, which will stimulate demand for loans in the economy . Lending interest rates, both old and new, are still low compared to pre-pandemic times.
In addition, the Government also directed commercial banks to implement solutions to help reduce lending interest rates. Credit capital for real estate loans is expected to increase in 2025, which will help home buyers and investors access capital more easily. This will not only support businesses in restructuring debt and implementing projects, but also improve investor sentiment and promote market recovery.
Securities companies also agreed that sales are expected to increase sharply for large, reputable real estate businesses that are implementing sales in cities and provinces on the outskirts of the center with good locations such as Vinhomes, Nha Khang Dien, Nam Long, and Dat Xanh.
The positive effects will help shareholders receiving stock dividends benefit when the market price increases. However, for shareholders of companies with unsatisfactory business operations or business difficulties, paying stock dividends is an unpleasant form of reward.
Agriseco Securities Company also gave a cautious assessment of the health of real estate companies with outstanding bonds. Accordingly, the pressure to pay corporate bond maturity will continue to increase. The value of bond maturity in the 2025-2026 period is estimated at VND490,000 billion.
Specifically, in 2025 it will be about VND250,000 billion, concentrated in the second half of the year and about VND240,000 billion in 2026. In 2025, about 45% of maturing bonds will belong to the residential real estate group, of which, it is estimated that over VND20,000 billion of bonds are at risk of late principal repayment, according to VIS Rating.
However, the forecasted improved payment capacity in 2025 will help businesses avoid default, concentrated in large investors, while remaining businesses with delayed interest payments are expected to continue to face difficulties, and poor credit records will make it difficult to access capital.
Source: https://dantri.com.vn/kinh-doanh/loat-dai-gia-vung-tien-tra-co-tuc-doanh-nghiep-bat-dong-san-da-hoi-phuc-20250627074407201.htm
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