Lucrative dividends on offer this June

Vinamilk offers its shareholders a lucrative dividend of 50 per cent for 2017

June 12 will be the deadline for registration for second-round dividend payment with a ratio of 40 per cent at privately-held major steel maker Nam Kim Steel JSC (ticker NKG on HoSE), increasing the company’s full-year 2017 dividend payment ratio to 50 per cent.

NKG aims to maintain a similar dividend payout ratio this year, in both cash and bonus share format. Simultaneously, the company is set to achieve a production output of one million tonnes of steel products (840,000 tonnes of steel sheets and coated steel alone), VND17 trillion ($755 million) in revenue, and VND750 billion ($33.3 million) in post-tax profit, up 6 per cent on-year.

Petrolimex Petrochemical Corporation (ticker PLC on HNX) will close its shareholder list on June 15 to pay 2017 dividends in cash later this month at a ratio of 20 per cent.

Accordingly, the company will use around VND162 billion ($7.2 million), equalling 94 per cent of its total after-tax profit from last year, to pay dividend.

This year, PLC aims to post VND5.53 trillion ($245 million) in total net revenue and VND189 billion ($8.4 million) in after-tax profit, up 10 and 11 per cent on-year, and plans to use at least 80 per cent of its full-year after-tax profit to pay dividend for 2018.

On June 26, Vinamilk—Vietnam’s top dairy producer—will pay its remaining 2017 dividend in cash with the ratio of 15 per cent. With about 1.45 billion stocks in circulation, the company envisages spending more than VND2.1 trillion ($93.3 million) this time from its retained profits from the previous year.

After three payments, the company’s dividend payments for 2017 have reached 50 per cent, all in cash. This year, Vinamilk contemplates a similar payout ratio of 50 per cent for 2018, all in cash. The first round is slated to take place in the third quarter this year.

Also in the late second quarter or early third quarter of 2018, leading steel maker Hoa Phat Group (ticker HPG on HoSE) will distribute 606.8 million shares for 2017 dividend payment at a ratio of 40 per cent.

After the share distribution, the company’s charter capital will come to VND21.240 trillion ($944 million) from the current VND15.170 trillion ($674 million).

Danang Chemical Industry JSC (ticker DCI in UpCOM) has announced paying 2017 dividend at a record ratio of 288 per cent. The money is to come from the company’s undistributed after-tax profit collected before late 2017 (nearly VND67 billion or $2.9 million).

Of this, DCI has finalised its first-round payment at a ratio of 30 per cent and will continue paying the remaining dividend in three rounds with respective ratios of 30 per cent, 90 per cent, and 138 per cent, in the upcoming time.

This record dividend payment has astonished the market, as last year its performance was not so upbeat when it fell slightly short of its full-year revenue and after-tax profit targets.

Statistics by Petroleum Securities JSC show that the companies offering high dividends of at least 15 per cent belong to the sectors of pharmaceuticals, building materials, consumer goods, food, chemical, steel, and insurance, which generally promise rosier business prospects than other fields.

For a long time now, the stocks of companies operating in these “basic” sectors are the “favoured food” of experienced investors, particularly amidst the current volatile market conditions.