China Shenhua made a big profit of 50.3 billion last year. This year, the company has generously donated 50.5 billion to shareholders, which means that holding 100 shares of China Shenhua can receive a dividend of 254 yuan.
If you hold a stock with a market value of 1 million, you can theoretically receive a dividend of 76,000. But when the dividend is distributed, you will find that the stock account with a market value of 1 million has become a stock market value of 924,000, the available capital is 76,000, and the account assets are still 1 million.
Dividends seem to just play a numbers game for us, does it make sense?
In terms of market value, it seems meaningless, because it does not increase the total assets of the account by one point, but it seems to be meaningful, because before the dividend, you held 0.15% of the equity of China Shenhua. After the dividend, you hold The proportion of equity has not changed, but the account has 76,000 more available funds!
To give you a simple example, if you raise an old hen, and it lays eggs, you have an old hen and one more egg; after laying eggs, its weight does drop in a short period of time, but as long as it eats normally, The weight can be regained.
In theory, if you want to get the dividend yield, you have to hold it for a year, and other conditions remain unchanged, the old hen can recover after eating for a year. In fact, this bond is similar. If you want to get the interest income of the bond, you have to hold it for one year.
Theoretically speaking, there are two basic purposes of making money. The first is to share it with shareholders, and the second is to invest in reproduction to make more money. But the ultimate goal of a company to make more money is to distribute it to shareholders. Enterprises choose one or two but the stage is different.
According to Buffett, if an enterprise’s ROE is lower than 15%, it means that the enterprise’s profit-making efficiency is not high, and the money should be divided! $China Shenhua(SH601088)$ $Conch Cement(SH600585)$
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