Securities Times | Total Dividends of SSE Companies Exceed 10 Trillion Yuan in Past Decade, Over 300 Companies' Cumulative Dividends Surpass Funds Raised through IPOs and Refinancing
Translated from Securities Times
Listed companies are pushing forward the implementation of their 2022 dividend plans. Taking the listed companies on Shanghai Stock Exchange (SSE) as an example, as of June 22, 2023, a total of 1,074 companies have published their equity distribution implementation announcements for the year 2022, accounting for nearly 50% of all companies that have released their equity distribution plans.
In 2022, the cumulative cash dividend of SSE companies reached RMB 1.72 trillion yuan, representing a year-on-year increase of over 12%. Among the 1,528 companies that distributed dividends, more than 70% had a dividend ratio exceeding 30%, accounting for 84% of all profitable companies.
In recent years, the SSE has actively promoted cash dividends by listed companies, aiming to guide them towards greater investor returns, strengthen shareholder return mechanisms, and continually enhance the level of cash dividends. Statistics indicate that over the past decade (2013-2022), SSE companies have cumulatively distributed dividends totaling RMB 10.12 trillion yuan, with the dividend amount steadily increasing each year. Presently, the distributed dividends of 327 SSE companies have surpassed the funds they raised through IPOs and refinancing combined.
Central SOEs Lead Cash Dividends in SSE Market in 2022
Over the years, cash dividends have become a regular practice, serving as a significant way for investors to participate in the companies' performance growth.
In 2022, a total of 1,528 SSE companies introduced cash dividend plans, with a collective dividend amount of RMB 1.72 trillion yuan, marking a year-on-year increase of over 12%. Notably, 164 companies disbursed dividends amounting to over RMB 1 billion yuan, while 26 companies disbursed dividends of above RMB 10 billion yuan.
Central SOEs emerged as the key players driving cash dividends among SSE companies. In 2022, out of all dividend-paying SSE companies, a notable presence of 215 central SOEs disbursed a cumulative amount of RMB 1.05 trillion yuan, among which 55 central SOEs disbursed dividends exceeding RMB 1 billion yuan, and 19 central SOEs disbursed dividends exceeding RMB 10 billion yuan. Industrial and Commercial Bank of China Limited, China Construction Bank Corporation, and China Mobile Limited accounted for cash dividend totals of RMB 108.2 billion yuan, RMB 97.3 billion yuan, and RMB 82.1 billion yuan, respectively.
Sustained and stable cash dividends serve as crucial benchmarks for evaluating the investment value of listed companies, and they provide an essential pathway for investors to reap returns. Based on the closing prices on June 21, 2023, a considerable cohort of 288 SSE companies boasted dividend yields of over 3% for the year 2022, with 41 of these being central SOEs. Impressively, 117 companies exhibited dividend yields surpassing 5%, including 21 central SOEs, with the likes of COSCO Shipping Holdings Co., Ltd., China Shenhua Energy Company Limited, CNOOC Limited, and Industrial and Commercial Bank of China showcasing dividend yields exceeding 6%.
The long-standing steadiness exhibited by central SOEs in terms of dividend yields forms the bedrock for reshaping their market valuation and has been favored by investors. Recently issued, the first batch of three CSI Guoxin Central SOEs Shareholders' Return ETFs was met with enthusiasm, warranting proportionate allotment based on the subscription results.
Banking and Coal Industries Show Higher Dividend Yields
The reporter has observed a significant improvement in both the consistency and growth of dividend payments among SSE listed companies. Over the past decade (2013-2022), the cumulative amount of dividends distributed by SSE companies reached RMB 10.12 trillion yuan, with an increasing trend each year. Notably, 36% of these listed companies have distributed cash dividends for ten consecutive years.
For instance, from 2019 to 2022, 107 SSE companies (including 40 central SOEs) consistently distributed cash dividends exceeding RMB 1 billion yuan for three consecutive years. Among those companies, 17 companies, including the six major banks, China National Petroleum Corporation, China Petroleum & Chemical Corporation, China Yangtze Power Co., Ltd., Kweichow Moutai Co., Ltd., and Ping An Insurance (Group) Company of China, Ltd., have maintained a dividend payout exceeding RMB 10 billion yuan for three consecutive years.
Regarding the dividend payout ratio, 764 companies have maintained a dividend payout ratio exceeding 30% for three consecutive years, while 117 companies have consistently achieved a dividend payout ratio exceeding 50% over the same period.
Looking at the dividend yield, 113 companies have achieved a dividend yield exceeding 3% for three consecutive years, with 35 companies maintaining a dividend yield exceeding 5% over the same period. Ten companies, including Xiamen C&D Inc., Daqin Railway Co., Ltd., Bank of Communications Co., Ltd., and Bank of China Limited, have achieved a dividend yield exceeding 5% for five consecutive years. Noteworthy sectors with higher dividend yields include the banking, coal, mining, and transportation industries.
From 2019 to 2021, Pingdingshan Tianan Coal Mining Co., Ltd. consistently distributed cash dividends amounting to over 60% of its net profit attributable to shareholders of the listed company. The total cash dividend amounted to RMB 3.286 billion yuan over the three years. In 2022, the company distributed a cash dividend of RMB 8.7 yuan per 10 shares, resulting in a total cash dividend of RMB 2.014 billion yuan and a dividend payout ratio of 35.18%.
A representative from Pingdingshan Tianan Coal Mining Co., Ltd. said that the company will continue to prioritize cash dividends as a way of rewarding shareholders. With comprehensive considerations and balanced coordination, the company will strictly adhere to relevant profit distribution systems, aiming to share the fruits of its corporate development with investors, thereby promoting the company's growth and providing returns to shareholders.
Dividend Payouts of Over 300 Companies Surpass Funds Raised through IPO and Refinancing
It is noteworthy that a significant number of SSE listed companies have already surpassed their equity financing scale in terms of cash dividend payments, indicating a more balanced approach to investment and financing among these companies.
Statistics reveal that currently, 327 SSE companies, including 65 central SOEs, have distributed dividends that exceed the total funds raised through their IPOs and refinancing efforts. 15 companies, including the four major banks, the three major oil and gas companies, China Shenhua Energy Company Limited, China Mobile Limited, and Baoshan Iron & Steel Co., Ltd., have made cumulative dividend payments that surpass their total capital raised by more than RMB 50 billion yuan.
As a listed central SOE, Daqin Railway Co., Ltd. has distributed nearly RMB 100 billion yuan in dividends over its 17 years of being listed, which is 1.5 times the total fund raised through its IPO and refinancing activities. In the past three years, the company's cash dividend ratios reached 65.75%, 58.54%, and 64.00% respectively.