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Companies set to pay dividends

Update: March, 15/2014 - 10:14

HA NOI (VNS)— Sai Dong Urban Joint Stock Corporation (SDI) will spend VND997 billion (US$47.5 million) in cash to pay dividends to its shareholders at a ratio of 83 cent.

This means that each stakeholder will receive VND8,310 ($0.39) per share. SDI shares were traded at VND21,600 ($1.02) yesterday.

Approval of the corporation's shareholders assembly will be solicited from Sai Dong Urban's Management Board at the extraordinary meeting scheduled at the end of this month.

As a member of the real estate giant Vingroup, Sai Dong Urban Corporation, with charter capital of VND500 billion, invested in the Vinhomes Riverside project in Ha Noi's Long Bien District.

In 2013, Sai Dong Urban Corporation reported revenue of VND5.019 trillion ($239 million) and after-tax profit of nearly VND1.16 trillion ($55.23 million). This was 56.8 per cent and 274.5 per cent higher, respectively, than the previous year. The earnings per share of SDI was VND9,666 ($0.46).

Technology giant FPT's management board also passed a resolution to pay cash dividends at a ratio of 30 per cent for 2013, 10 percentage points higher than the goal of 20 per cent set at the FPT's annual shareholder meeting held that year.

Half of the dividends (15 per cent) were advanced last year. The rest will be paid to shareholders in the second quarter of this year if the general shareholders assembly approves the ratio.

Also, FPT's management board has targeted a dividend payment ratio of 20 per cent for 2014, together with a plan to issue shares for its workers from 2014 to 2017, with a value below 0.5 per cent of its charter capital each year.

FPT shares were traded over seven consecutive days, showing gains before stagnating yesterday.

A string of listed companies also announced dividend payout ratios recently, including CNG Viet Nam, Kinh Do Group, Song Hong Construction Company and Vicem Packaging Bim Son Joint Stock Company.

Local commercial banks are also gearing up to announce a dividend payment plan for 2013.

Sai Gon Thuong Tin Bank, or Sacombank, took the lead, with a dividend payment of 16 per cent. Half of this will be paid in cash and the rest in shares, so as to receive additional capital of VND1 trillion.

The Bank for Foreign Trade of Viet Nam, or Vietcombank, is expected to pay dividends in shares at a rate of 12 per cent.

Last year, Viet Nam Bank for Industry and Trade, or Vietinbank, also took the lead to pay dividends in cash at 16 per cent. This year, it is expected to pay a dividend in shares of 10 per cent only.

According to Phan Dung Khanh from Maybank Kim Eng Securities, dividend payments in shares are advantageous to businesses. Instead of having to set aside a huge sum of cash for shareholders, businesses can keep part of the cash to increase charter capital and can use that cash for other purposes.

Low profits were another reason why bankers are cautious as they set out to pay dividends for 2013. Le Hung Dung, chairman of Eximbank, told Vnexpress online that this year, his bank expected to pay dividends between 4.8 to 5 per cent.

He attributed this low dividend value to the pressure for capital preservation and said that this year, the bank had to set aside a large amount of capital for it. He assured investors that dividends would be higher next year.

According to many experts, unlike previous years, investors are likely to prefer receiving dividends in shares, thanks to the recovery of the stock market. He added that if the stock market recovers, the value of shares will also be higher.

Despite positive profits in 2013, some commercial banks have not yet announced their dividend payment plans. Senior leaders of the Military Bank and Sai Gon Ha Noi Bank have said that payment plans are being considered. — VNS


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