2018 AGMs promise heavy dividends

On the back of good performance in 2017, shareholders are looking at high dividends

Specifically, Vimeco JSC (VMC) stated that the firm would pay cash dividends to its shareholders on April 16. In 2017, the construction and real estate firm secured a total of VND2.27 trillion ($100.56 million) in revenue, a 56 per cent rise against the same category in 2016, and a total after-tax profit of VND231 billion ($10.23 million), which was eight times as high as in 2016.

A representative of Vimeco noted that the firm expected to issue bonus shares in the ratio of 1:1 to raise its charter capital from VND100 billion ($4.43 million) to VND200 billion ($8.86 million).

In particular, the firm planned to issue a collective 10 million shares at the starting price of VND10,000 ($0.44), commensurate with 20 per cent of the current market price (VND50,000 ($2.21) per share recorded on March 19).

Previously, several Vietnam-based firms, such as TV2, VCS, and SVI, paid unusually large dividends to shareholders with the dividend payout ratio of 60-80 per cent cash and bonus shares. To date, the highest payout dividend ratio of 660 per cent was paid by Vinacafe JSC (VCF).

Additionally, in the upcoming AGM on March 28, FPT Telecom JSC (FOX) planned to fix the payout dividend rate at 80 per cent, 30 per cent of which would be paid in cash and 50 per cent in shares.

The firm noted the total capital expended for the dividend payout plan mounted up to VND1.205 trillion ($53.38 million). After paying its shareholders dividends in shares, FOX's charter capital would grow from VND1.5 trillion ($66.45 million) to VND2.26 trillion ($100.11 million).

To add, the recent AGM of Power Engineering Consulting JSC 2 (HNX: TV2) had the dividend payout plan approved, which specified the dividend payout ratio of 110 per cent, in which 10 per cent will be cash and 100 per cent bonus shares, effective in the second quarter of 2018.

Due to the optimistic business performance accomplished in 2017, TV2 is currently at the top spot with the leading EFS of VND39,268 ($1.74) per share.

Le Duc Khanh, head of Investment Advisory at PetroVietnam Securities Inc, noted that over the past three years, the dividend payout rate offered by firms in the sectors of pharmaceuticals, construction materials, consumer goods, food processing, chemicals, steel manufacturing, and insurance tend to surpass the payout rate offered by firms in other sectors.