CITIC Gold’s dividend stock has increased by 3.26%, which is what many experts think.

CITIC Gold’s dividend stock has increased by 3.26%, which is what many experts think.

November 20, 2024 Catherine Williams - Chief Editor News

CITIC Financial Declares Dividend and Sees Stock Surge

CITIC Financial (2891) announced a dividend of 2 yuan on September 19. Following this news, the stock price rose over 3%, reaching a high of 38 yuan, its highest level in four months. The trading volume peaked at nearly 100,000 around 1:30 PM, making it the fourth-largest stock on the Taiwanese market.

The stock closed at 38.5 yuan, up 3.26%, with a total trading volume of 153,700 contracts. CITIC Gold is expected to provide cash dividends of 1 yuan and 1.8 yuan for the years 2023 and 2024, respectively, with a distribution rate exceeding 60%. The company reported an after-tax profit of 63.389 billion yuan in the first ten months of this year, surpassing last year’s earnings of 3.2 yuan per share.

The general manager, Gao Lixu, indicated there is potential for the dividend to increase to 2 yuan next year. However, the board will finalize this decision in April, depending on capital needs. The market responded positively, leading to an increase in the stock price.

Currently, the dividend yield at 38 yuan stands above 5%, with a potential yield of 5.25% if calculated at the peak intraday price. This has attracted both depositors and long-term investors, pushing trading volumes above 100,000 by mid-morning.

Cai Minhan, an associate director at Cathay Securities Futures Consultants, advised caution. He suggested investors should not chase rapidly rising prices but instead develop a profit-taking strategy. CITIC Financial is considered a stable, high-quality stock by legal entities. However, past concerns about consolidation and equity expansion had raised doubts among investors.

Market fluctuations in response to the dividend news have revived interest in CITIC Financial. Cai recommends maintaining a neutral view on new investments and avoiding chasing emerging themes. Although CITIC financials have performed well, investors should consider long-term investment strategies rather than quick gains.

In summary, CITIC Financial’s promising dividend announcement and stock performance signal a positive outlook, but investors are encouraged to remain prudent and strategic in their actions.