Attention financial stock holders! The dividends expected to be distributed by 4 state-owned financial holdings and 2 state-owned banks next year have come out! Whether investment friends want to add more money or receive it as soon as it’s good, now is the time to evaluate.
Some investors may ask, “This year is not over yet, why do you know how many dividends can be distributed next year?” The main reasons are:(1) Cash dividends are linked to the AFT treasury budget, which must be decided in advance. In addition, (2) large financial holding companies and banks can roughly estimate the amount of dividends that can be distributed next year based on profit levels from the first three quarters Therefore, next year the dividend payment figures can be confirmed preliminarybut if there is a plan for allocating shares, it will have to wait until confirmation is received from the board of directors next year.
How much cash dividends are allocated to the “4 gold and 2 silver”, let’s see!
Table 1. Financial holdings of official stock and banks that initially confirmed cash dividends
| A financial institution | 2022 Planned Cash Dividend | 2021 Distribution of cash dividends | 2021 Distribution of stock dividends | dividend yield |
|---|---|---|---|---|
| First Gold (2892) | 1.0 | 1.0 | 0.2 | 3.92% |
| Mega Gold (2886) | () 1.2 | 1.4 | 0.25 | 3.85% |
| He Kujin (5880) | 1.0 | 1.0 | 0.3 | 3.83% |
| Shogun (2801) | 0.5 | 0.5 | 0.1 | 2.92% |
| South China Gold (2880) | 0.5 | 0.78 | 0.34 | 2.27% |
| Enterprise Bank of Taiwan (2834) | 0.2 | 0.1 | 0.37 | 1.56% |
Data collection: Chen Weitai (Note: The dividend yield is calculated based on the closing price on 11/23)
Dividend yield less than 4%
Attached in Table 1 are the originally confirmed cash dividends next year for 4 state-owned financial holdings and 2 state-owned banks, and the current dividend yield is calculated using the closing price on November 23.
First of all, we look at the proposed cash dividends Compared to last year, there is only one increase: Taiwan Enterprise Bank (2834), but if you look at the current stock price, the dividend yield is the lowest.
Compared to last year, there are three companies that have the same cash dividend: First Gold (2892), Hekujin (5880), and Zhangyin (2801). Judging from the current stock prices of these three financial stocks, First Gold has the highest dividend yield, followed by Hekujin, but none of them is more than 4%.
Compared to last year, two cash dividends are decreasing: Mega Gold (2886) and Huanan Gold (2880) Judging from the current stock prices of these two financial stocks, the dividend yield is 3.85% and 2.27 % respectively.
Overall, the level of dividend payments of financial holding companies and state-owned banks is a bit disappointing, as with the current yield on 10-year US Treasury bonds at around 3.7%, this is not a good deal on for foreign capital to cover Taiwan stocks in the near future He said that our financial stocks do not have an absolute investment advantage, so we should pay attention to see if the cover of buying foreign capital will continue.
Private financial holdings also have the risk of shrinking interest rates
After reading the estimated dividend distribution figures for government-owned financial holdings and banks, I can’t help but worry about non-government-owned private financial holdings, because the Fed’s interest rate increase and the decline in bond prices has affected many private financial holdings. this year Loss of valuation financial assets. The valuation losses of these financial assets will be put in the deduction item of “other equity”. Please refer to Appendix 2 for the other equity losses of the five life insurance companies during the first half of the year.
Table 2. Other equity losses of 5 life insurance holding companies during the first half of the year
| The name of a financial holding | Accumulated EPS | Other equity in the first half of the year (100 million) |
|---|---|---|
| Cathay Gold (2882) | 4.03 | -3591 |
| Fubon Gold (2881) | 6.07 | -1853 |
| Development Fund(2883) | 1.23 | -926 |
| CITIC Gold (2891) | 1.67 | -885 |
| Shin Kong Gold (2888) | 0.71 | -665 |
Data collection: Chen Weitai
Some investment friends may not fully understand,Why do you have to worry about not being able to pay interest even though you are making money? The reason is that the Financial Supervisory Commission stipulates that if other equity is negative, the company must pay the book losses first, and the remaining surplus can distribute dividends. Therefore, although Fubon Gold (2881) and Cathay Gold (2882) have so much EPS on their books, the actual amount that can be distributed may be greatly reduced.
In response to this issue, Mr. Li Changgeng, general manager of Cathay Financial Holdings, said that evaluating the use of capital reserves to distribute dividends will try to satisfy investors. However, it is still unknown whether the FSC will use the financial holding company’s capital reserves to increase dividends and the amount in the end.
The focus of entering the market may not be the dividend but the spread
therefore,If the purpose is to save stocks, the current stage may not be the best time to intervene. But looking at it from another angle, this year may be the worst time for financial stocks. If the stock price has a chance to correct downwards, it cannot be dismissed as a good opportunity for medium and long-term investment.When entering the market at this time, the focus may be on capital gains (spread), rather than dividend income! Either way, I wish you the best in your investment!
About the Author_Chen Weitai
Having been part of the financial securities industry for more than 17 years, he is a qualified securities analyst, currently the chief investment officer of Zhongying Fortune, a financial consultant of CMoney Quanyao, a leading financial writer, and a lecturer at the Securities Foundation and Community University Zhongzheng, this week, Yahoo financial column, Shangzhou Fortune Net special author.
The investment mindset focuses first on the long-short cycle of the general economy, and combines fundamental stock selection and technical operations; he believes that “choosing the opportunity to enter the market” is the way to make a profit in stock market investment. There are currently 2 books: “Trust me, you can’t make enough money”, “The history of the Taiwan stock market”.
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