Stocks with high dividend rates – The best choice in the market

Posted: 28-11-2018

When the stock market falls into a correction phase, stocks with high dividend rates on the market price become “storm shelter” because the profit margin is higher than deposit, and there is no need of large amounts of capital as real estate investment and it is more stable than many other investment channels.

Adjusting market, what is the smart investment strategy?

The popular investment channels that investors choose are real estate, gold, securities, virtual currencies (bitcoin), or the most stable one, which are savings deposits. However, 2018 did not seem to be an easy year for investors.

For real estate channel, the foundation soil market in localities expected to become special economic zone such as Phu Quoc, Van Don and Van Phong currently not too hot as at the beginning of the year. The apartment market also witnessed an increase in supply and the important thing was that real estate investment required large amounts of capital.

The world gold price is still around 1,200 USD / ounce and decreases by 12% since the peak in April. Meanwhile, the virtual currencies have a time of “dropping”, losing up to 80% of the value. Bitcoin - the most famous virtual currency dropped from the peak of nearly 20,000 USD / dong to the bottom of only 3,500 USD / dong earlier this week.

For the investment channel of depositing money in banks, interest rates of savings deposits at many banks are over 8% / year with long terms and high levels in recent years.

Meanwhile, Vietnam's stock market is going through a deep adjustment period and dragging many stocks down. Along with the decline of the score, the weak market liquidity shows a certain caution of investors.

VN-Index set a peak of 1,204 points on April 09th, 2018, and then fell sharply to the bottom of 900 points in July. Through many rising and falling sessions, the index is still fluctuating around the level of 900 points, corresponding to 25% of adjustment level.



Facing gloomy development of stock market and the slowdown of other investment channels such as gold, real estate and foreign currencies.... investors may choose stocks with high dividend rates to "avoid market storm".

Stocks with high dividend rates

There are many enterprises in Vietnam stock market with high and stable dividend payment over the years.

In the construction group, recruit Hung Thinh Incons JSC (HoSE: HTN) when they have just been listed to the stock market, they "aggressively" distributed a total dividend of 30%, equivalent to the total payment value of VND 75 billion. In which, the company expected to spend 15% in cash and 15% by stocks. The record date was December 03rd, 2018, the ex-dividend date was November 30th, 2018 and the time for dividend payment started from December 17th, 2018.

By the end of the third quarter of 2018, Hung Thinh Incons had nearly VND 269 billion of retained profits and a surplus of VND 45 billion of equity, ensuring the ability to pay in the coming time. HTN stocks are traded at 30,000 VND / share.

The 30% dividend payment is based on the impressive business results of Hung Thinh Incons. In 2017, the company recorded profit after tax of VND 110 billion, doubling the amount in 2016 and increasing 9 times in 2015. EPS 2017 reached VND 4,407.


HTN is currently the general constructor of nearly 30 projects, and this is a great strength to ensure a solid financial source for HTN


Compared to some companies in the same sector, HTN's dividend is quite attractive. Coteccons paid 50% dividend in cash for 2017 but with a market price at 150,000 VND /share, the dividend / market price is only equivalent to 3%. Tan Ky Construction Real Estate Trading Corporation (TKC) had a 10% dividend in cash compared to the market price of 29,000 VND / share.

In addition, many units also announced dividends distribution at an attractive level. Dong Phu Rubber JSC (HoSE: DPR) has recently approved the advance of 2018 dividend at the rate of 40% in cash, corresponding to the amount of about VND 160 billion. Dong Phu is an enterprise that usually pays dividends at a high level; the ratio of 2016 was 50% and of 2017 was 60%. With a stock's market price of about 35,000 VND / share, DPR's dividend rate on market price is 10% higher.

Nui Nho Stone JSC (HoSE: NNC) agreed to advance the dividend of 2018 in cash with the rate of 40%, corresponding to the amount of about VND 88 billion. Previously in September, the company just paid the remaining dividends in the previous year at the rate of 20% and used the development investment fund to pay 50%. Although the company has advanced dividend at rate of 40%, this level of payment was quite high on the market price of about 53,500 VND / share of NNC.


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