Introduction to BYD’s Dividend Distribution Plan
The BYD stock is currently highly celebrated as the company rewards its shareholders with a combination of dividends and bonus shares. These measures are part of a revised dividend distribution plan that indicates strong corporate performance and a close relationship with investors.
Details of the Dividend Distribution Plan
- Bonus Shares: For every ten BYD shares held, eight additional bonus shares are issued to shareholders. This represents a significant increase in the shareholders’ equity without any additional cost to them.
- Capitalization Shares: Additionally, shareholders receive twelve new shares for every ten shares held. These shares are drawn from the company’s capital reserves and are issued free of charge.
- Cash Dividend: Alongside the bonus shares and capitalization shares, shareholders will receive a cash dividend of 39.74 RMB per ten shares.
Impact on Share Capital
Through the issuance of bonus shares and capitalization shares, BYD’s total share capital increases from 3.039 billion shares to 9.117 billion shares. This corresponds to an increase of over six billion shares.
Market Reaction
BYD’s stock reacted positively to this announcement. In Hong Kong, the stock price rose by 4.90% to 394.20 HKD, and other markets also saw an increase of over 3%. This positive market reaction reflects investors’ appreciation for measures that indicate strong corporate performance and a close relationship with shareholders.
Significance for Shareholders
The combination of dividends and bonus shares demonstrates that BYD is committed to rewarding its shareholders and promoting their investments. This can strengthen investor confidence in the long term and enhance the attractiveness of BYD’s stock. The measures are also a sign of the company’s financial stability and growth potential, which could be particularly interesting for investors.