Agriseco Research has recently published a list of stock recommendations for long-term dividend investments.
In their latest report, Agriseco Research stated that the VN-Index has decreased by nearly 10% since its short-term peak, while Q1 financial results are gradually being released, showing robust growth figures. As a result, market valuations are now reaching attractive levels.
Given the current low interest rates for bank deposits (major commercial banks report 1-year deposit rates ranging from 4.3% to 4.9%), a suitable strategy would be to acquire quality stocks at reasonable prices to benefit from cash dividends and potential future price appreciation.
Agriseco Research believes investors should consider stocks with a history of high and consistent cash dividends and a solid financial position. Additionally, companies operating in stable industries with minimal exposure to economic cycles should be prioritized.
Based on these criteria, Agriseco Research has identified six stocks, including two listed on HOSE, three on UPCoM, and one on HNX: VEA of Vietnam Engine and Agricultural Machinery Corporation, SMB of Saigon Beer-Central Vietnam Joint Stock Company, GHC of Gia Lai Hydropower Joint Stock Company, PAT of Vietnam Phosphate Apatite Joint Stock Company, DHA of Hoa An Chemical Joint Stock Company, and SED of Phuong Nam Education Investment and Development Joint Stock Company.
According to statistics, VEA stands out as a company specializing in automobile manufacturing, assembly, and sales, as well as the casting of machinery parts. The company has ample financial resources, with cash deposits accounting for nearly 48% of total assets. Backed by stable cash flow from operations, VEA has paid attractive cash dividends ranging from 40% to 100% over the past three years.
It is worth noting that the company will hold its 2024 Annual General Meeting of Shareholders on June 20, 2024. The record date for shareholder participation is May 20.
– SMB is a company specializing in the production and distribution of beer, alcohol, and soft drinks. The company maintains a solid capital structure with low debt levels. According to SMB’s 2024 cash dividend plan, a dividend of 35% will be distributed, corresponding to a dividend yield of 9.4% per year. Given that current 12-month bank deposit interest rates range from only 4.3% to 4.9%, SMB offers an attractive investment opportunity in the current low-interest-rate environment.
In 2024, SMB projects a production and consumption volume of 178.57 million liters, with total revenue reaching 1,378.85 billion VND. The company anticipates a pre-tax profit of 97.25 billion VND and a dividend payout of 35%. On April 24, 2024, the company will determine the record date for the 15% interim cash dividend for 2024. The payment date is scheduled for June 5, 2024.
– GHC operates in the power generation sector, owning two hydroelectric power plants and four solar power plants with total capacities of 28.2 MW and 56.1 MW, respectively. This industry is characterized by sustainability and has consistently demonstrated stable growth. In 2024, the company plans to pay a cash dividend of 25%, corresponding to a dividend yield of 8.7% per annum, almost doubling the current bank deposit interest rates…
For 2024, GHC forecasts total revenue of 351 billion VND, net profit after tax of 142 billion VND, and a dividend payout ratio of 15-25% in cash.
– SED is a company engaged in the production and distribution of educational equipment. In 2023, the company maintained stable operating performance, with a net profit after tax exceeding 41 billion VND, a 9% increase compared to 2022. SED continues to exhibit a healthy financial position, with enhanced capacity to meet short-term debt obligations. Moreover, the company has consistently maintained a high cash dividend payout ratio over many years, offering a dividend yield of approximately 7.7% per annum, presenting an attractive opportunity for dividend income.
In 2024, SED projects total revenue of 1,031 billion VND, pre-tax profit of 48.7 billion VND, and a dividend payout ratio of 15%.
– DHA, formerly known as Hoa An Stone Enterprise (1980), operates in the mining and processing of stone and construction materials. In 2023, the company’s net profit after tax surged by 83.4% year-over-year, reaching 95.94 billion VND, driven by increased stone production for public investment projects, an improvement in gross profit margin from 27% to 30%, and the reversal of financial reserves amounting to 25.26 billion VND. With stable operations and a sound financial structure, DHA has consistently maintained a high cash dividend payout ratio in recent years.
For 2024, DHA anticipates total revenue of 267.5 billion VND, pre-tax and after-tax profits of 47.94 billion VND and 38.352 billion VND, respectively. The company plans to distribute a cash dividend of 20-30%.
– PAT is a subsidiary of DGC, primarily engaged in the production, processing, and trading of yellow phosphorus. The company was listed on the stock exchange in 2022. Since its listing, PAT has consistently maintained a high cash dividend payout ratio.
In 2024, PAT forecasts total revenue of 1,678.54 billion VND, a net profit after tax of 230 billion VND, and a dividend payout of 70%.
PAT intends to distribute a cash dividend of 70% in 2024, corresponding to a dividend yield of 7.5% per annum, exceeding bank deposit interest rates. Investors may consider holding the company’s shares to benefit from dividend income during this period.
