Summary of Key Points
Recently, the A-share market has experienced fluctuations and adjustments. In addition to using share repurchases and increased holdings to stabilize the market, listed companies have also been actively implementing dividend policies:
- Since July, 9 companies have disclosed their 2026 mid-year dividend plans, with a total dividend amount exceeding 25 billion yuan.
- The 2025 annual report dividends are being distributed intensively; on July 28 alone, 20 companies paid out 10.7 billion yuan, with another 50 companies set to follow suit.
- Most of the companies distributing dividends have performed well financially, and some have even increased their dividend ratios or introduced mid-year dividends for the first time, making dividends an important tool for stabilizing the market.
I. Mid-Year Dividends: Who Are the Most Generous?
Since July, 9 A-share companies have announced their mid-year dividend plans, with Zijin Mining being the most generous—proposing to distribute 4.2 yuan per share, totaling 11.136 billion yuan in dividends, which is equivalent to giving shareholders a cash bonus of over ten billion yuan. Following closely are CATL (14.11 yuan per share, totaling 6.493 billion yuan) and Hikvision (5.5 yuan per share, totaling 5.041 billion yuan). These three leading companies account for more than half of the total mid-year dividend payments. Additionally, Tianshan Aluminum (3 yuan per share, totaling 1.369 billion yuan) has also joined the “billion-dollar dividend club,” while the dividends of the other companies range from 0.2 to 5 billion yuan. Overall, the main recipients of mid-year dividends are powerful companies within their respective industries.
II. Are Dividends Merited by Performance?
The performance of most companies distributing dividends is impressive:
- Leading Companies with Dual Growth: CATL reported revenue of 276.9 billion yuan (up 54.8%) and profit of 43.2 billion yuan (up 41.98%); Hikvision reported revenue of 46.8 billion yuan (up 11.97%) and profit of 7.896 billion yuan (up 39.57%), demonstrating strong profitability.
- Dark Horse Companies with Dramatic Growth: Yisheng Shares saw its profit increase by 4,897% year-over-year (nearly 50 times), and its revenue increased by 28%, indicating significant earnings growth.
- Companies with Expected Growth: Zijin Mining expects its profit to increase by 68% for the first half of the year, and Tianshan Aluminum expects a 101% increase; these companies are distributing dividends despite not yet releasing their mid-year reports, showing confidence in their performance.
- Few Exceptions: Dongfang Precision Engineering saw its revenue decrease by 21%, but its profit increased by 867% (possibly due to cost control or additional earnings); Wohua Medicine’s revenue decreased by 7.5%, yet its profit still increased by 51%. Overall, dividends are generally supported by solid financial performance and are not merely symbolic.
III. Annual Report Dividends are Being Distributed Intensively: 10.7 Billion Yuan in One Day—What Other Options Are There?
The 2025 annual report dividends are being distributed in a concentrated manner:
- Large Cash Payments on One Day: On July 28, 20 companies paid out a total of 10.7 billion yuan. Among them, China Railway Construction (4.074 billion yuan), Huayu Automotive (3.153 billion yuan), and Huaneng Mengdian (1.724 billion yuan) were the top three. Even securities companies like Guolian Securities and Dongxing Securities participated in the dividend distribution.
- Dividends Plus Stock Awards/Stock Consolidations: Some companies offer both cash and additional shares. For example, Youyou Green Energy offered 4 free shares for every 10 shares held plus an additional 8 yuan in cash; Zhidi Technology offered 3 free shares for every 10 shares held plus 3.5 yuan in cash, allowing shareholders to receive both cash and more shares.
- More to Come: From July 29 to 31, another 50 companies, including China Railway and Pianzaihuang, will continue to distribute dividends, providing investors with additional bonuses.
IV. Why Can Dividends Help Stabilize the Market?
Given the recent volatility in the A-share market, dividends have become an important part of a “market stabilization strategy”:
- Building Investor Confidence: Cash dividends show that companies are profitable and willing to share their profits, alleviating concerns that companies are only raising funds without giving back to shareholders, thus enhancing their willingness to hold shares.
- Sending Positive Signals: Companies like Shanghai Airport have proposed increasing their mid-year dividend ratios to 55% (distributing more than half of their earnings to shareholders), and Changchuan Technology is attempting mid-year dividends for the first time, sending a message to the market that “our company is in good shape, so there’s no need to panic.”
- Complementing Share Repurchases and Increased Holdings: Together with share repurchases and increased holdings, dividends help stabilize market sentiment by providing a sense of reward to shareholders and reducing panicked selling, thereby helping the market stop declining and stabilize.
In summary, the frequent distribution of dividends by listed companies not only reflects their financial strength but also serves as a practical measure to stabilize the market. For individual investors, receiving cash bonuses or additional shares is a tangible benefit.