How long will the huge wave of dividends drag steel stocks up?

Steel stocks suddenly increased hot

Closing the session on June 9, VN-Index slightly decreased 0.11 points to 1,307.8 points; HNX-Index increased 1.81 points to 312.74 points; UPCoM-Index fell 0.11 points to 94.89 points.

Market liquidity decreased sharply compared to the previous session, the total matched value reached 14,086 billion dong; in which, matched value on HoSE dropped 24% to 11,876 billion dong.

Foreign investors net bought about 180 billion dong on HoSE, focusing on BSR, STB, DXG, DPM, DCM, PNJ…

Today, VCB pulled the main index back nearly 1.7 points. GAS, SAB, VNM, VPB, MSN, EIB, VHM, SBS, MBB put more pressure on the index.

The most notable in today’s session was the steel trade with an increase of 2.7% of HPG, 6.2% of HSG, 5.6% of SMC and the overbought ceiling at NKG and TLH.

The rest of the groups had a state of equilibrium, including Chemicals, Securities, Oil and Gas… Particularly, Food and Beverage, Banking, Retail, Insurance… all adjusted down slightly. With the stocks that had the most influence on the VNIndex, the upswing was HPG +2.74%, GVR +1.48%, VGC +6.97%, STB +3.24%, POW +3 .25%, VRE +1.64%; The downtrend can be seen in VCB -1.77%, GAS -1%, SAB -1.69%, VNM -1.13%…

Dividend wave of steel enterprises

The steel line suddenly reversed to increase hotly as soon as information about the dividend payment schedule was announced by many steel companies.

Specifically, Ho Chi Minh City Metallurgy Joint Stock Company (HoSE: HMC) has just announced a Resolution on the last registration date to exercise the right to pay dividends in 2021 up to 75%.

Accordingly, June 22, 2022 is the last registration to exercise the right to receive 2021 cash dividends at the rate of 45%/share (1 share receives VND 4,500). Thus, Vnsteel will have to spend more than 94 billion dong to pay cash dividends.

At the same time, this is also the deadline to receive 2021 stock dividends. Right exercise ratio 100:30. Each shareholder owning 1 share will receive 1 right to receive more shares. For every 100 rights to receive more shares, you will receive 30 new shares.

Similarly, Vicasa Steel Joint Stock Company (HoSE: VCA) has just announced the closing date of the list of shareholders to receive cash dividends in 2021.

Specifically, June 20 is the last registration date to actually receive the 2021 cash dividend at the rate of 30% (1 share receives 3,000 VND). The ex-dividend date is June 17, the dividend payment time is expected to be from June 28, 2022.

Thus, with nearly 15.2 million shares listed and in circulation, Vicasa Steel will have to spend VND 45.6 billion respectively to pay dividends to existing shareholders.

Also recently, according to the announcement of Hoa Phat Group Joint Stock Company (HoSE: HPG)This company plans to issue 1.34 billion shares to pay dividends to shareholders in 2021.

Specifically, Hoa Phat will issue 1.34 billion shares with a total issued value at par value of VND 13,418 billion. The right exercise rate is 30%, which means that a shareholder owning 10 shares will receive 3 new shares. Funds issued from undistributed after-tax profits on audited financial statements for 2021. Last registration date for rights allocation June 20. The implementation period is from June-August 2022.

The total number of HPG shares outstanding on the market is about 4.47 billion shares, after the issuance of more shares, the total number of issued shares of HPG to 5.8 billion shares.

Besides paying dividends in shares, HPG will also pay cash dividends at the rate of 5%, each shareholder owning 1 share will receive 500 VND. The total value of cash payments at face value is about 2,236 billion VND, the implementation time is in June-August 2022.

Previously, Nam Kim Steel Joint Stock Company (NKG) also closed the dividend for 2021 at the rate of 30%, of which 10% is in cash, corresponding to a shareholder owning 1 share will receive 1,000 VND, for a period of time. payment is expected on 5/7/2022; 20% in shares, corresponding to shareholders owning 100 shares will receive 20 new shares. Thus, if the stock dividend is paid successfully, the charter capital will increase from VND 2,194 billion to VND 2,632.8 billion.