Another stock priced at 700 VND but dividend 4 times higher

397 Joint Stock Company (stock code BCB) announced that May 30 is the last registration date to close the list of shareholders to receive cash dividends in 2024. The company will pay cash dividends at a rate of 28.10%/share, equivalent to 2,810 VND per share.

Notably, BCB shares on the stock exchange are priced at only VND700/share. Thus, the cash dividend yield on the market price of this stock is more than 400%, equivalent to 4 times. Although not equal to the rate of Phan Thiet Garment Joint Stock Company when the dividend is more than 20 times the stock price, BCB is also one of the rare enterprises that pay dividends many times the stock price.

Another company pays huge dividends 4 times higher than stock price

PHOTO: NGOC THANG

With 5.7 million shares in circulation, it is estimated that the company will spend about VND16 billion to pay dividends to shareholders this time. Of which, more than 50% of the money, equivalent to about VND8.16 billion, will flow to the parent company, Dong Bac Corporation under the Ministry of National Defense, when this unit owns 51% of BCB's capital.

In addition to the parent company, this enterprise has two other major shareholders, Quang Thanh Construction Company Limited (owning 20%) and Tho Huan Construction, Trade and Service Joint Stock Company (owning 11.46%) will receive VND3.2 billion and VND1.8 billion in dividends, respectively, in this period. Similar to some enterprises that pay high dividends, due to the concentration of shareholders, BCB shares have not had any transactions for nearly a year and the price has remained unchanged at VND700/share.

Since listing on UPCoM in 2018, the company's annual dividend rate has been at double digits. In 2024, the company's revenue will reach more than VND 1,070 billion, down 30% compared to 2023, but after-tax profit will be about VND 20 billion compared to the previous year and will exceed the set plan.

In the 2025 plan, BCB set a revenue target of nearly VND 912.4 billion, down 14.7% compared to 2024. However, pre-tax profit is expected to reach VND 25 billion, up 25% compared to 2024 and the dividend rate is also expected to be 28.07%.

Source: https://thanhnien.vn/them-mot-co-phieu-gia-700-dong-nhung-co-tuc-gap-4-lan-185250514115851987.htm