Opportunities from tickers with high dividend yield

14:45 | 25/03/2020
The stock market is in the doldrums due to the implications of the COVID-19 pandemic. The sharp decline in prices, however, is ushering in good opportunities for investors to grab tickers with attractive dividends.
opportunities from tickers with high dividend yield
There are multiple opportunities in tickers with attractive dividends

After closing 2019 with upbeat business performance, apparel maker Viet Thang Corporation JSC (HSX: TVT) has recently announced its 2019 dividend payment in cash at a ratio of 25 per cent.

Along with this, each shareholder will receive VND2,500 (10.8 US cents) in dividend per share. The date of closing the shareholder list is set at April 1 and the day for dividend payment is estimated on June 25. TVT closed at VND23,000 ($1) at the end of the March 24 trading session.

With about 21 million stocks in circulation, TVT would spend a round sum of VND52.5 billion ($2.28 million) on dividend payments this time. By the end of 2019, the company reportedly held VND208.3 billion ($9.05 million) in cash and deposits at banks, VND54.5 billion ($2.4 million) of which was deposits with terms of above three months. With the current ticker price, grabbing the ticker now would yield buyers a dividend/price ratio of around 11 per cent, significantly higher than the current deposit rate.

In addition, the company has a track record of stable dividend payments and has been reporting good business results in recent years.

The Ministry of Finance has cut 10-50 per cent of charges for nine securities services to assist investors and boost market liquidity.

In another case, on March 10, Noi Bai Cargo Terminal Service JSC (HSX: NCT) has closed the list of shareholders for the first round of dividend payments in 2019, setting payment at VND4,000 (17.39 US cents) per share. The time for payment is estimated on April 9, 2020. The company has maintained an appealing payout policy to shareholders for many years.

The total cash payment each shareholder received was VND9,000 (39 cents) in 2018, and the figures were VND10,000 (43 cents) in 2017 and VND11,000 (47.8 cents) in 2016. NCT closed the March 24 trading session at VND45,200 ($1.9).

In the industrial real estate field, Nam Tan Uyen JSC (UPCoM: NTC) has recently unveiled their profit distribution plan for 2019, in which the company envisages using 67.6 per cent of its total profit for dividend payments, equal to VND10,000 (43 cents) per share.

In last December, the company advanced VND5,000 (21.7 cents) per share in dividend payment. In 2018, each shareholder received a total of VND16,000 (69.57 US cents) in dividend payments. The dividend over price ratio of NTC often surpasses 10 per cent per year. NTC closed the March 24 trading session at VND139,200 ($6.05).

Many power sector businesses have also reported fairly attractive cash dividend ratios.

For instance, Can Don Hydro Power JSC (HSX: SJD) set dividend payment in 2019 at VND2,300 (10 US cents) per share in cash. Compared to the stock price of VND15,700 (68 US cents) at the end of the March 24 trading session, the dividend over price ratio of the ticker comes to around 15 per cent.

PetroVietnam Power Nhon Trach 2 JSC (HSX: NT2) has also set 2019 dividend payment at 25 per cent, equal to VND2,500 (10.87 US cents) per share. Meanwhile, the ticker closed the March 24 trading session at VND16,450 (71.52 US cents), meaning its dividend over price ratio surpassed 15 per cent.

The VNIndex has tumbled a total of 28.4 per cent since January 30 when the market returned from the Lunar New Year (Tet) holiday and the coronavirus outbreak (COVID-19) began exerting a heavy impact on China.

In this situation, the Ministry of Finance has cut 10-50 per cent of the charges for nine securities services such as stock trading and deposits, position and margin management, auctions, and listed covered warrant management.

The move aims to ease difficulties for investors and boost market trading liquidity as the pandemic has caused severe losses for investors and wiped out billions of dollars from the market, the ministry said.

By Lam Thuy

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