Choice data indicates that as of August 25th, 373 A-share companies have announced their interim dividend plans, with a combined dividend payout exceeding 160 billion yuan. With the mid-year report disclosures reaching their peak, over a hundred listed companies released relevant plans last week (August 19th to 23rd).

Not only has the number of companies planning to distribute dividends hit a new high, but several companies have also been very generous in their payouts. Some are proposing a dividend payout ratio as high as 80%, while others are planning a substantial cash distribution of "10 shares for 45", and there are also several companies with a total cash distribution exceeding one hundred million yuan. Additionally, the interim dividends of several A-share companies have entered the implementation phase. Companies including Founder Securities and Ping An Bank are introducing interim dividends for the first time.

Tian Lihui, Dean of the Institute of Financial Development at Nankai University, stated to First Financial that under the effective guidance of regulatory policies, and based on the improvement of listed companies' performance and profit enhancement, it is expected that the number of listed companies distributing dividends will continue to increase.

Nearly 400 companies are "crowding" to distribute dividends. As we enter late August and the A-share mid-year report disclosures peak, the number of listed companies announcing interim dividends is gradually increasing. On the evening of August 24th alone, dozens of companies such as Rui Neng Technology, Lepu Medical, and First Capital all "crowded" to release their dividend plans.

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Comparatively, the enthusiasm for interim dividends by listed companies this year has significantly increased. Wind data shows that in the past three years (2021 to 2023), the number of A-share listed companies implementing interim dividends were 186, 138, and 194, respectively.

In terms of progress, among the 373 companies that have disclosed their dividend plans, more than 70% (268) have had their plans approved by the board of directors, 93 are in the pre-disclosure phase, and 12 have been approved by the shareholders' meeting.

Which industries are the main forces in dividend distribution? Computers, electronics, pharmaceuticals, and chemicals are leading the way in dividends.

Wind data, based on the China Securities Regulatory Commission's industry classification, shows that the top three industries are computer, communication, and other electronic equipment manufacturing, specialized equipment manufacturing, electrical machinery, and pharmaceutical manufacturing, with 32, 29, and 26 companies respectively. In addition, the chemical raw materials and chemical products manufacturing industry, and the electrical machinery and equipment manufacturing industry also have more than 20 A-share companies planning to distribute dividends.

Which companies are planning substantial dividends? In terms of dividend payout ratios, companies such as Robam Appliances, Zhongneng Electric, and Hongya Numerical Control all state that the upper limit of their cash dividend payout ratio will not exceed 100% of the net profit for the corresponding period; Zhaomin Technology's interim cash dividend payout ratio upper limit is 80%; several other companies are planning a dividend payout ratio of 50% or more, including Marubi, Sert, and Selun Biotech.From the perspective of dividends per share, "Game Mao" - the nickname for the gaming industry leader - Jibitui is planning a "10 pay 45" distribution, which totals a proposed cash dividend payout of 323 million yuan; several other companies have dividends per share (including tax) exceeding 10 yuan - China Mobile is planning a "10 pay 23.789", Anjoy Food is planning a "10 pay 13.8", Pien Tze Huang is planning a "10 pay 11.5", and Donge Ejiao is planning a "10 pay 11.44".

Additionally, some companies are implementing both stock splits and cash dividends. Leidian Weili is planning a "10 for 4 shares and 3 yuan cash" distribution, while Jin Tian Guoji is planning a "10 for 4.5 shares and 5 yuan cash" distribution.

Furthermore, numerous banks and securities firms have already proposed mid-term dividend plans in the past two months. According to public data, by mid-June, more than 20 listed securities firms planned to conduct mid-term dividends, among which, proposals from Guojin Securities, Haitong Securities, and Capital Securities have been approved by shareholders' meetings.

Several companies are introducing mid-term dividends for the first time.

Currently, mid-term dividends for the year 2024 have been implemented by some companies. Wind data shows that Zijin Mining, Beixin Road Bridge, Goertek, and nine other companies have completed their mid-term dividends. Companies with higher cash dividends per share include Action Education with a "10 pay 10" distribution, Zhuochuang Information with a "10 pay 4.5" distribution, while Jidong Shares and Lixing Shares respectively have "10 pay 1.17" and "10 pay 1.2" distributions. Fudan Zhangjiang, Nanxing Shares, and ten other companies are waiting to implement their dividends.

Looking at the total cash dividends for the year, China Mobile plans to pay a dividend of 2.38 yuan per share (including tax) to its shareholders, totaling approximately 51 billion yuan in mid-term dividends.

Zijin Mining's total mid-term cash dividend exceeds 2.6 billion yuan. According to the company's announcement, it has completed the mid-term profit distribution, paying a cash dividend of 1 yuan (including tax) per 10 shares, totaling 2.658 billion yuan in cash dividends.

Market data also shows that Ping An Bank, China Unicom, Shanghai Rural Commercial Bank, and Shuanghui Development plan to distribute more than 2 billion yuan in mid-term dividends.

It is worth mentioning that many companies are introducing mid-term dividend plans for the first time.

Founder Securities, which has been listed for more than a decade, is introducing a mid-term dividend for the first time. The company recently disclosed plans to pay a cash dividend of 0.48 yuan (including tax) per 10 shares, with a total cash dividend payout not exceeding 395 million yuan (including tax). This marks the first time Founder Securities has introduced a mid-term dividend plan since its listing in 2011.China National Heavy Duty Truck Corporation (CNHTC) has recently introduced its first mid-term dividend plan in recent years. The company plans to pay a dividend of 0.66 yuan per share, with an estimated total dividend payout of approximately 1.822 billion yuan, representing a dividend payout ratio of 55%.

According to incomplete statistics, Ping An Bank and Shanghai Energy are both introducing mid-term dividends for the first time. Among them, Ping An Bank is initiating a mid-term profit distribution for the first time since 2012, proposing to pay a cash dividend of 2.46 yuan (including tax) for every 10 shares.

Policies continue to guide, leading to more enthusiastic dividends

The increase in cash dividends by listed companies this year is closely related to the continuous advocacy by regulators. Just recently, the regulatory authorities once again emphasized the guidance for listed companies to increase their dividend payouts.

According to a news release on the official website of the China Securities Regulatory Commission (CSRC) on August 25, the CSRC Party Secretary and Chairman Wu Qing recently held a special symposium in Beijing, where he had in-depth exchanges with representatives of 10 top institutional investors, including the National Social Security Fund, insurance asset management, bank wealth management, and private equity funds, to fully listen to their opinions and suggestions.

At the meeting, Wu Qing mentioned that it is important to guide listed companies to increase their dividends and repurchase efforts, and to encourage listed companies to use mergers and acquisitions, equity incentives, and other methods to enhance investment value.

In April, the new "Nine National Policies" explicitly required strengthened supervision of cash dividends by listed companies, restricting major shareholders from reducing holdings and implementing risk warnings for companies that have not paid dividends for many years or have low dividend payout ratios. At the same time, it increases the incentive for high-quality dividend companies and takes multiple measures to promote the improvement of the dividend yield.

As required, A-share listed companies should enhance the stability, continuity, and predictability of dividends, and promote multiple dividends per year, pre-dividend payments, and dividends before the Spring Festival.

"Under the promotion of the regulatory authorities, many listed companies have increased their dividend frequency, and investors' expectations for this are also increasing," said Tian Lihui.

He mentioned that strengthening the supervision of cash dividends will encourage companies to improve their governance structure, increase financial transparency and operational efficiency, focus on the effective allocation and use efficiency of capital, and enhance investors' confidence in the company's future development.Tian Lihui predicts that under the guidance of value investment philosophy, investors will increasingly value cash returns. To attract and retain investors, listed companies will also actively engage in market value management and proactively increase dividends.

He also warns that investors need to pay attention to the sustainability of company dividends, assessing whether they are based on stable profits and a healthy cash flow. If future dividends cannot be sustained or increased, it will cause stock price fluctuations.

"At the same time, it should also be seen that dividends will reduce the company's internal funds, affecting the potential for future expansion and reinvestment," he believes that listed companies should not sacrifice their financial health and debt-paying ability in the distribution of dividends. Investors need to assess the company's asset-liability situation.