Don’t join in the fun, no matter how much Kweichow Moutai pays out, it has nothing to do with you or me
At the shareholders’ meeting in Moutai, Guizhou on June 9, the “2020 Profit Distribution Plan” was voted and approved by shareholders, that is, a dividend of RMB 192.93 (tax included) for every 10 shares. A total of 24.235 billion yuan of profit will be distributed, and the dividend profit will hit a record high. According to the statistics of Kweichow Moutai, Kweichow Moutai has distributed a total of 121.4 billion yuan in dividends over the past 20 years, which is 61 times the amount of funds raised.
The share price is 19.293 yuan, the distributed profit is 24.235 billion yuan, and the cumulative dividend is 121.4 billion yuan. Looking at this set of data alone, it is undoubtedly very eye-catching, and it is also a brilliant report card given to investors by Guizhou Moutai. If there are more such companies, the situation in China’s capital market will definitely be much better.
So, how to look at the dividend plan of Kweichow Moutai? How much do these dividends have to do with ordinary investors? Is this level of dividends high or low among A-share listed companies? Obviously, you can’t just talk about things, you have to take a look at it and see what the core of the dividend is.
To say that Kweichow Moutai’s dividends are not good, this is not objective and it is not seeking truth from facts. Because the accumulated dividends of 121.4 billion yuan, which is impossible for ordinary listed companies. What’s more, Kweichow Moutai is not a listed company with a particularly large share price. The 1.256 billion shares of listed companies are in the upper middle class, but the market value exceeds 2 trillion. How can such a company not be considered a high-quality listed company? The cumulative dividend has reached 121.4 billion yuan, and of course it is also a high-quality company in terms of dividends.
However, it must be said that all of this can only stay in the first 15 years, and the dividends in the first 15 years may be more or less related to ordinary investors. Although the stock price is as high as one hundred yuan, two to three hundred yuan, in any case, ordinary investors with good money can still buy hundreds of shares, or even thousands of shares or thousands of shares. In the next five years, even though the total amount of dividends is increasing, the actual earnings per share are getting less and less. Take this year’s dividend as an example, 19.293 yuan per share, and the price per share is as high as 2,000 yuan. In other words, it takes 2,000 yuan to get 19.293 yuan, and the distribution rate of one hundred yuan is less than 0.9%. Compared with some other high-quality companies, the dividend per share may be less than 10 yuan, but the stock price is mostly less than 100 yuan. In other words, the distribution rate of one hundred yuan is around 10%, and the lesser ones can reach around 5%.
More importantly, the stock price is as high as 2,000 yuan, and there may only be institutions that can set foot in Kweichow Moutai. Ordinary investors who want to buy Kweichow Moutai stocks can only look forward to the stock and sigh. Because 100 shares cost more than 200,000, how many investors can buy Kweichow Moutai with such courage? Even if it is hot money, facing the Kweichow Moutai stock, it will feel a little trembling. This also means that Kweichow Moutai’s dividends are basically a game for institutional investors and large households. Ordinary investors can only watch and become a crowd.
Therefore, while being excited about the high dividends of Kweichow Moutai, we must also see that Kweichow Moutai has become aristocratic just like their liquor, and has nothing to do with ordinary investors. It is unpredictable how long this stock price will maintain. But one thing is certain, as long as there is no problem with the company, the stock price will not come down. As long as the stock price does not come down, Kweichow Moutai can only be a game for institutional investors, and ordinary investors will not even have the feeling of onlookers in the end. Naturally, there is no need to rejoice about Kweichow Moutai’s dividends, it has nothing to do with you or me. No, it doesn’t matter at all.