BYD’s Dividend and Bonus Shares Plan
BYD’s stock has recently gained value as the company has revised its profit distribution plans and announced a comprehensive reward for its shareholders. These measures include not only a cash dividend but also the issuance of bonus shares and capitalization shares. Here are the details:
- Dividend: BYD plans to distribute a cash dividend of 39.74 RMB per ten shares. This is part of a new dividend plan aimed at returning more to shareholders.
- Bonus Shares: For every ten held BYD shares, eight additional bonus shares will be issued to shareholders. This is a direct reward for investors, showcasing the company’s commitment to supporting its stakeholders.
- Capitalization Shares: In addition to the bonus shares, shareholders will also receive twelve capitalization shares for every ten held shares. These new shares will be issued for free from the company’s capital reserves.
Impact on Share Capital
The implementation of this plan will increase BYD’s total share capital from 3.039 billion shares to 9.117 billion shares. This means an increase of over six billion outstanding BYD shares.
Market Reaction
The announcement was received very positively by investors. BYD’s stock rose by 4.90% in Hong Kong to 394.20 HKD, underscoring shareholders’ appreciation for these measures. This development shows that BYD is further solidifying its position as a leading company in the electric vehicle sector while emphasizing shareholder satisfaction.
Dividend History
BYD typically pays out a dividend once a year, with the distribution month being July. Last year, the dividend was approximately 3.97 HKD, and for the current year, a dividend of about 4.81 CNY is expected. This consistent dividend policy demonstrates BYD’s commitment to regularly returning a portion of its profits to its shareholders.
In summary, BYD is comprehensively rewarding its shareholders through a combination of cash dividends, bonus shares, and capitalization shares, thus enhancing its market attractiveness.