Lucrative dividend payments on offer amid COVID-19

Many companies stick to high dividend payments despite the impacts of COVID-19

So far this month, more than 71 listed firms have announced plans on dividend payment to shareholders, several of whom offer tempting payout ratios.

Along with this, with a payout ratio reaching 45 per cent, meaning VND4,500 (20 US cents) after each share, Masan Consumer Corporation (UpCOM: MCH) is expected to splash out about VND3.172 trillion ($138 million) on dividend payments.

Every year since 2016, the company has been paying dividend at a stable 45 per cent payout ratio.

In the first half of this year, Masan Consumer raked in net revenue amounting to VND10.029 trillion ($436 million), a 28 per cent jump on-year and post-tax profit touching VND1.867 trillion ($81.2 million), up 16 per cent.

In another case, a business with a long-lasting tradition of paying dividend to shareholders with payout ratio averaging 33 per cent annually since being listed in 2010, NET Detergent JSC (HNX: NET) has recently announced its cash-based payout ratio of 22 per cent to shareholders.

This means the company would spend more than VND48 billion ($2.1 million) on dividend payments.

The company’s performance in the first half was fairly impressive, despite COVID-19 implications.

Accordingly, NET Detergent saw a 36.4 per cent jump on-year in its net revenue to reach VND727 billion ($31.6 million), whereas its post-tax profit soared 112 per cent to VND74 billion ($3.2 million).

Two other firms also retaining the tradition of paying high dividends to shareholders are Dinh Vu Port Investment and Development JSC (HSX: DVP) and PetroVietnam Low Pressure Gas Distribution JSC (HSX: PGD – PV Gas D) with a payout ratio of 25 per cent.

Particularly, with 40 million stocks in circulation, Dinh Vu Port Investment and Development JSC is expected to splash out about VND100 billion ($4.35 million) on dividend payment for shareholders. In the first half of this year, the company reaped VND139 billion ($6 million) in net profit by virtue of higher financial earnings, albeit its net revenue in the period shed 18 per cent on-year to stand at VND237 billion ($10.3 million).

Since going on the bourse in 2009, the company has been paying dividend to shareholders stably with payout ratio averaging at 37 per cent. Meanwhile, since being listed in 2009, PGD has maintained the habit of paying dividend in cash to shareholders with payout ratio around 27 per cent.

Sonadezi Long Thanh JSC (HSX: SZL), operating in construction and real estate, has announced that it would pay dividend of 30 per cent in the form of cash.

With more than 18 million shares in circulation, the company is expected to put nearly VND55 billion ($2.4 million) into handling the task. Since going on the bourse, the company has often offered high dividends to shareholders with payout ratio averaging at 19 per cent.

Sonadezi Long Thanh has four big shareholders holding more than 78 per cent of its total stock value, including Industrial Zone Development Corporation, its parent company Sonadezi (56 per cent), America LLC (10 per cent), Dong Nai Province Investment Development Fund (6 per cent), and one individual Tran Canh Thong (6.43 per cent).

This year, the company has set the revenue target of more than VND409 billion ($17.8 million) and VND87 billion ($3.8 million) in after-tax profit, down 4 and 15 per cent on-year, respectively.

In the first half this year, Sonadezi Long Thanh raked in VND176 billion ($7.65 million) in net revenue, reaching 43 per cent of its full-year plan, but its after-tax profit was around VND49 billion ($2.13 million), 56 per cent of the full-year plan.