Dividend plans warm the hearts of shareholders

LPBank plans to pay cash dividends in 2025 at a rate of 25%, equivalent to VND 7,468 billion. Photo: Duc Thanh

Bank shareholders happy with cash dividends

After a series of days of deep stock declines and modest recovery, shareholders of Tien Phong Commercial Joint Stock Bank ( TPBank , code TPB) were happy to witness an impressive price increase of 4.98% on May 12.

This impressive increase comes from the dividend effect that TPBank is preparing to pay. This bank announced that it will pay a cash dividend on May 23, with a 10% implementation rate, equivalent to each share receiving 1,000 VND.

TPBank plans to spend VND2,642 billion to pay dividends this time. The last registration date to close the list of shareholders receiving dividends is May 14, 2025. The ex-dividend date is May 13, 2025. As a result, buying power increased sharply at TPB in the session on May 12, pushing the stock price up 4.98% - the strongest increase of TPB in the past month.

Previously, Vietnam International Commercial Joint Stock Bank ( VIB ) closed the shareholder list on April 23 to pay cash dividends at a rate of 7%. The payment date is May 23. With a dividend rate of 7%, VIB is expected to pay VND2,085 billion.

2025 is a year when banks are busy planning to pay cash dividends. Not only TPBank and VIB, many banks plan to pay cash dividends this year, including Techcombank, MB, ACB, VPBank, SHB, LPBank, OCB. Of which, the most notable is Loc Phat Commercial Joint Stock Bank (LPBank, code LPB) with a plan to pay cash dividends at a rate of 25%, equivalent to VND 7,468 billion.

With the above rate, LPBank is the bank with the highest cash dividend rate in the market. Sharing at the General Meeting of Shareholders, Mr. Nguyen Duc Thuy, Chairman of LPBank's Board of Directors, said that the Bank's Board of Directors wishes to pay as high a dividend as possible in the coming years, next year it can pay a 20% cash dividend, or 5-7% in shares. It is known that May 20 is the last registration date to receive this dividend level.

Meanwhile, ACB plans to pay a dividend of 25% (10% in cash and 15% in shares); MB plans to pay a total of 35% (including VND1,831 billion in cash equivalent to 3%). The expected cash dividend levels of other banks are Techcombank 10%, OCB 7%, SHB 5%, VPBank 5%.

The total amount of money expected to be used to pay cash dividends of the above 9 banks is about 33,000 billion VND - a record high for the banking group. This number may increase further, as HDBank said that there is more than 10,134 billion VND of profit that can be used to pay dividends at a rate of 28%. HDBank's Board of Directors also said that the plan to pay a maximum cash dividend is 15%.

Previously, in 2024, 9 banks paid cash dividends to shareholders, namely VIB, ACB, HDBank, MB, VPBank, Techcombank, Eximbank, SHB, TPBank, with an estimated total amount of about 30,000 billion VND, much higher than in 2023 in terms of both the number of banks and the scale of cash dividend payments.

Spending thousands of billions of dong to pay dividends

In addition to the “real money” dividend plan from banks, investors will also receive many “huge” dividend payments in the coming time from large and small enterprises. Particularly in the week from May 12 to 16, 2025, a series of enterprises will finalize dividend rights.

On May 15, Vinamilk will close the list of shareholders to receive a 20% cash dividend, equivalent to VND2,000 per share, with the dividend payment date being May 23. This is the remaining dividend payment for 2024, and shareholders will still have one more payment scheduled for the third quarter at VND350 per share.

Many listed companies are listed in the list of stocks with high dividend rates and good liquidity, suitable for investors with low risk tolerance and defensive investment strategies, especially prioritizing during the period when the stock market may still face unpredictable fluctuations due to upcoming tax scenarios. These are Son La Sugar Joint Stock Company (code SLS), Quang Ngai Sugar Joint Stock Company (code QNS), Saigon Cargo Services Joint Stock Company (code SCS), PetroVietnam Fertilizer and Chemicals Corporation (code DPM), Vietnam Engine and Agricultural Machinery Corporation (code VEA)...

Previously, Vinamilk had paid two cash dividends in 2024 with a total payout of VND2,000/share. The total payout for 2024 is 43.5% - the highest payout since 2028. This dairy giant is famous for its regular annual cash dividend payout at a high rate. Vinamilk's recent annual general meeting of shareholders also approved a plan to pay cash dividends in 2025 equal to at least 50% of the consolidated after-tax profit plan for 2025.

Vietnam Airports Corporation (ACV) has also just submitted a written shareholder opinion on the plan to distribute undistributed accumulated after-tax profits as of December 31, 2023. Accordingly, the after-tax profit to be distributed is VND 21,191 billion. After allocating 30% of the profit to the annual development investment fund as prescribed, the remaining after-tax profit to be distributed as dividends is VND 14,059 billion.

ACV is seeking opinions on paying dividends in shares at a rate of 64.58% - the highest dividend rate of the Corporation since its equitization and listing. With this plan, ACV plans to issue an additional 1.4 billion shares in 2025, increasing its charter capital to VND35,830 billion.

Companies with high and regular dividends are always considered the most effective defensive investment channel, regardless of strong market fluctuations. Good annual dividends often come from large companies with stable business performance and sustainable financial potential.

According to Mirae Asset Securities Company's recommendation, for safe investment, stable dividends maintained at around 5%/year or more are attractive compared to average savings interest rates. Large cash payout ratios and low financial leverage help investors feel secure in holding for the long term. The ability to generate steady cash flow through dividends supports the "dividend reinvestment" strategy to help accumulate assets effectively. At the same time, this group is often less likely to be sold off during deep market declines, due to its distinct "defensive" characteristics.

Source: https://baodautu.vn/nhung-ke-hoach-co-tuc-lam-am-long-co-dong-d283343.html