Why does CSRC encourage listed companies to pay dividends in cash?

Cultivate the concept of long-term investment and enhance the attractiveness and vitality of the capital market.

Whether it is cash dividend or stock transfer, it is a way for listed companies to repay all shareholders. Let me talk about how to find such a company first.

Generally speaking, judging whether a company has a high distribution ability is not based on the size of the company and the nature of enterprise ownership, but mainly depends on the following two points:

First, whether there is a habit of high turnover, some companies are used to sending shares, such as Minsheng and Vanke; Some companies are used to paying dividends, such as Maotai and Changyu. There is a high distribution every year, with few exceptions.

Second, if the distributable profit per share reaches or exceeds 65,438+0 yuan, it has the ability to send 5 shares or 65,438+00 shares to cash 5 yuan; When the capital reserve per share reaches or exceeds 65,438+0 yuan, it has the ability to increase 5 shares for every 65,438+00 shares;

Then why do some companies like or tend to choose cash dividends, and some choose to give away shares?

One is determined by the nature of the industry. For example, Changyu and Maotai are all light asset company. They don't need to invest a lot of money every year to expand their production capacity, so the product cost is low and the gross profit margin is high. Products are in short supply, like Maotai, which receives money in advance and delivers it, with abundant operating cash flow and a lot of idle cash in hand. It is normal to choose to use cash dividends, which is also in the best interest of shareholders. Although Vanke is not an asset-oriented company, the products they provide need to use a lot of money, such as Vanke, where land costs and construction and installation costs account for a large proportion of the products, and they often hold land instead of cash; The capital adequacy ratio of a bank company is closely related to its loan scale, so it is the best choice to keep as much cash as possible. Therefore, most of them choose to pay dividends by transferring shares, which is also the best choice for shareholders.

Secondly, it is determined by the development stage of the enterprise. Let's take Changyu and Maotai as examples. Due to the limitation of product production cycle, production technology and production environment, their production capacity can not advance by leaps and bounds, but can only grow steadily. In this way, the inflow of funds is much more than the outflow, and the cash in hand is naturally abundant, so it is logical to choose cash dividends. Companies like Vanke and Minsheng are in the stage of rapid expansion. They have a high growth rate, so they need to seize the opportunity to do it on a large scale and seize market share, which requires a lot of money. The outflow of funds in operation is much more than the inflow, and they are short of money. Of course, it is best for shareholders to keep as much cash as possible in the form of dividends.

Generally speaking, high turnover means that the company's profits are considerable and the industry's development prospects are promising. It is necessary to continue to invest the money earned in the company's main business, so it is chosen to pay dividends by stock instead of cash. If the company has suffered serious losses or made little profit, but insists on donating shares, the meaning is obvious, and it is hoped that the stock price will be speculated through the theme of high donation. As investors, we need to distinguish them.

Through the above analysis, the landlord should know that there is no difference between the two methods, but the key is the understanding of the company and personal investment style.

Personally, I prefer to choose high-growth stocks, which is my opinion!