Where Is The Crux Of The Problem Of Cash Dividends?

At present, it is the annual profit distribution season of listed companies. At the same time, while the stocks of high delivery companies are being hyped up by the market, a number of high dividend companies are also concerned by public opinion.

The largest amount of dividends is the non industrial and commercial bank, with a total dividend of 83 billion 148 million yuan.

In the face of a number of Blue-chip company's generous dividend schemes, the "calculus" companies that are "stubborn" and "only pull 10 Fen" or even "can't pull out 10 Fen" will inevitably be dwarfed.

Investment should pay attention to return, and listed companies also need to have a sense of return to shareholders.

Therefore, in the face of the annual profit distribution season, listed companies are "stubborn" or even "unable to pull out 10 Fen" for investors, which is of course a problem.

In fact, the proportion of such companies in the entire listed company is not low, and even the high pfer companies are also very tight on the issue of cash dividends. These companies are only using high delivery to hide their image of "iron chicken" on cash dividends.

There are two reasons why there are such "no iron" or "differential red" companies.

First, "no red can be divided".

On the one hand, a listed company is originally a loss or just a small profit. Such a company naturally has no red spots. On the other hand, although the listed companies are profitable, the profits of the listed companies are "made", without the corresponding capital flow, there is no red share.

Two is the lack of awareness of the return of shareholders in the listed companies.

Listed companies do not have money.

In particular, the refinancing system of listed companies is not linked to the dividends of listed companies, which makes the listed companies no longer afraid of dividends.

After all, for a listed company, even if there is no dividend or even loss of performance, companies can implement refinancing through private placement, so that listed companies are less motivated to cash dividends.

The two reasons mentioned above involve the construction of stock market system in the final analysis.

First, there are too many junk companies flooding the stock market, making the stock market short of the necessary investment value.

Two is the problem of imperfect financing system and delisting system.

For example, the garbage companies can be delisted in time, or even three consecutive years of non dividend payments or three years of dividend payments can not be mandatory to withdraw from the market, as well as the provisions of non dividend companies can not refinance (including fixed increase), then the phenomenon of listed companies can not be substantially reduced dividends.

So, is that right?

There is no question of cash dividends. Of course not.

The dividends of listed companies are obviously superior to those of irrespective of dividends.

Because dividends can at least increase the awareness of return shareholders of listed companies, at least suppress the fraud of listed companies, and increase the supply of funds for the market.

But the problem of cash dividends is also worth paying attention to.

First of all, in the face of cash dividends, investors in the two tier market are "no gains" or even "lose".

On the one hand is cash dividends "dividend" treatment, so that investors in the face of cash dividends have become no income.

On the other hand, it is the Levy of red profits and taxes, which allows investors to "lose" because of cash dividends, and the more dividends the listed companies receive,

The bigger the loss.

The dividend tax is unreasonable, which makes cash dividends lose the sense of return to investors. The existence of dividend tax is a distortion of value investment.

Secondly, cash dividends highlight the irrational ownership structure of A share listed companies.

A serious imbalance between the interests of the original shareholders.

Take the ICBC as the example, the profit distribution plan for 2015 is 2.333 yuan (including tax) for every 10 shares. The total share capital of the bank is 356 billion 400 million shares, with a total dividend of 83 billion 148 million yuan.

In the 83 billion 148 million yuan, Huijin and the Ministry of finance as the top two shareholders took 57 billion 630 million yuan, accounting for 69.31% of the total dividends, that is, the two largest state-owned shareholders took the dividend of the largest part of ICBC.

In addition, according to ICBC's A share issue price of 3.12 yuan / share, according to ICBC's dividend plan, the yield of A shareholders is 7.37%, while the initial shareholding cost of the two largest shareholders is determined according to the face value of 1 yuan, and the dividend yield calculated by this method is as high as 23.33%.

The yield of the two largest shareholders is much higher than that of the public shareholders, which is 3.12 times that of the public shareholders.

This problem is even more prominent in other A shares issued at a high price.

The problem of cash dividends will also arise. Besides the unreasonable need to remove dividend tax, it is also related to the institutional design of the A share market.

On the one hand, the controlling shareholders of listed companies hold a large number of shares, and the cost of holding shares is extremely low. On the other hand, there are few public shareholders holding shares, and they are issued at higher issuing prices or even super high issuing prices.

As a result, the public investors who pay a huge cost can only occupy the inferior position in the cash dividends of listed companies, which further highlights the inequity of cash dividends to investors.