Vietnam’s dividend-paying stocks create buzz among investors

Cash dividend-paying stocks in Vietnam continue to capture attention from investors, particularly newcomers, to the stock market.

According to financial experts, dividends provide a stable income stream, especially during times of market volatility. Dividends are also seen as a tool to hedge against inflation.

On average, dividend-paying stocks tend to be less volatile than non-dividend-paying ones. Moreover, reinvesting dividends can help investors leverage the power of compound returns over time.

Well-performing stocks with high dividend payout ratios can also draw significant capital inflows. Data shows that many such stocks have posted strong gains following the announcement of dividend payments.

At its 2025 AGM on April 24, shareholders of FPT Online JSC (UPCoM: FOC) approved a 100% cash dividend for 2024, meaning shareholders will receive VND10,000 ($0.39) for each share held. With more than 18.4 million shares floating, the company is expected to disburse VND184 billion ($7.09 million) in dividends.

On Monday, FOC’s board of directors announced the record date for dividend entitlement as May 26, 2025, with payment scheduled for June 27, 2025. Following the announcement on dividend payout, FOC shares surged by 22.71% from April 24 to May 15.

Similarly, FPT Telecom JSC (UPCoM: FOX) on April 10 announced that it would pay a 30% cash dividend (VND3,000 or $0.12 per share) as the second tranche for 2024 on June 6, 2025, and issue over 246.2 million bonus shares at a 50% ratio. From April 10 to May 13, FOX shares rose by 12.59%.

Another notable example is Vietnam Exhibition Fair Center JSC (UPCoM: VEF), which climbed 14.29% in just five trading sessions from May 8 to May 13. On May 8, the board proposed to shareholders a 135% cash dividend from retained earnings (VND13,500 or $0.52 per share), and an additional 300% interim dividend (VND30,000 or $1.2 per share) from Q1/2025 profits - both to be paid in cash within six months of the AGM.

With 166.6 million floating shares, VEF may have to disburse over VND7.2 trillion ($277.45 million) in total.

Statistics also show that many stocks experienced good growth after announcing cash dividend payments, such as D2D of Industrial Urban Development JSC No. 2 (+7.79%), LPB of LPBank (+9.45%), and VNM of Vinamilk (+1.74%).

In addition, the market has also seen several "pennies" that offer very high cash dividend payouts.

For example, Hai Phong Funeral Services JSC (UPCoM: CPH) announced that May 16 is the ex-dividend date for its 2024 cash dividend. The dividend payout ratio is 19.6%, meaning shareholders will receive VND1,960 ($0.076) per share, several times higher than its current market price of VND300 per share.

Similarly, Dong Bac Coal Transport and Processing JSC (UPCoM: VDB) announced May 12 as the record date for its 2024 cash dividend at a rate of 35.66%. This means shareholders will receive VND3,566 ($0.14) per share, also significantly higher than its market price of VND900 per share.

Other companies with low market prices but high dividend yields include Pho Yen Mechanical JSC (UPCoM: FBC) and Phan Thiet Garment Export JSC (UPCoM: PTG), among others.

Notably, these stocks are currently illiquid, with no trading activity in recent times due to highly concentrated ownership.