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The latest high dividend yield potential stocks are here.

On August 27th, the dividend sector led the gains once again, with both the petroleum and petrochemicals, and coal indices rising by more than 1%, and the banking index increasing by 0.23%. The A-share prices of the four major banks reached new highs, with closing gains all exceeding 1%.

So far this year, bank stocks have shown strong overall performance, leading the market. Data indicates that the banking index has soared by over 20% year-to-date, outperforming all A-shares. Multiple stocks such as Nanjing Bank, Bank of Communications, and Agricultural Bank have accumulated gains of more than 40% within the year.

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The surge in the banking sector can be attributed to factors such as valuation repair, liquidity premium due to market risk appetite, and the pursuit of stocks with high certainty of dividend yields. At the same time, some stocks with high dividend yields have unexpectedly experienced significant adjustments. What are the underlying reasons for this?

Liba Shares' dividend yield exceeded 22% last year.

According to a survey by Securities Times · Data Treasure, based on the latest market value and the total dividends distributed last year, as many as 27 stocks have a dividend yield exceeding 10%. Among them, Liba Shares distributed over 500 million yuan in dividends last year, with the latest market value of 2.346 billion yuan, resulting in a dividend yield exceeding 22%. Quartz Shares distributed a cumulative total of over 2.5 billion yuan in dividends last year, with the latest market value of 12.513 billion yuan, resulting in a dividend yield exceeding 20%. The main reason Liba Shares and Quartz Shares can have such high dividend yields is due to the significant drop in their stock prices, with Liba Shares falling by more than 27% within the year, and Quartz Shares plummeting by nearly 57%.

Many of the companies that make the list also have high dividend yields because their stock prices have been severely beaten down, thus resulting in a higher dividend yield calculated based on last year's distribution. For instance, Wuhan Blue Electricity's stock price has fallen by nearly 50% within the year, with dividends exceeding 100 million yuan last year, and the latest market value of 1.009 billion yuan, resulting in a dividend yield of 10.2%.

In addition, stocks such as Qingju Technology, Sanwei Shares, and Jiangshan Oupai have fallen by more than 40%, while Tiangang Shares, Huayang Racing, and Hao Xiang Ni have fallen by more than 30%. The only stocks that have increased in price are Rong'an Real Estate and COFCO Sugar, among which Rong'an Real Estate distributed over 1 billion yuan in dividends last year, with the latest market value of less than 7.2 billion yuan, resulting in a dividend yield exceeding 14%; COFCO Sugar distributed nearly 1.9 billion yuan in dividends last year, with the latest market value of 17.517 billion yuan, resulting in a dividend yield close to 11%.

What is the true dividend yield?

In fact, the increase in dividend yield caused by the significant drop in some companies' stock prices is not truly reliable. For example, investors in Quartz Shares will definitely not receive a 20% dividend yield. The stock's dividend yield before ex-rights and ex-dividend did not reach this level, and investors who entered after the stock price plummeted cannot receive the dividends from last year; moreover, for recent investors to achieve such a dividend yield, this year's dividend distribution would need to reach the level of last year. Fundamentally, it is difficult for Quartz Shares to achieve this, as the company's net profit in the first half of this year was 257 million yuan, a year-on-year decrease of over 89%.Similar to Quartz Shares, it is not easy for many of the listed companies to truly achieve the aforementioned ultra-high dividend yield. Among the 15 companies that have disclosed their semi-annual reports, 13 companies have seen a decline in net profits, with 9 companies experiencing a drop of more than 30%. Among the 4 companies that have announced performance forecasts, 3 have predicted a decrease, and the decline is significant. Clearly, the widespread decline in the performance of the listed companies in the first half of the year means that it is very difficult for most companies to maintain last year's dividend distribution, and it also determines that it is difficult for most companies to meet the dividend yield target.

Revealing the individual stocks that may exceed an 8% dividend yield this year:

The method of calculating the dividend yield mentioned above often represents the past, and the actual dividend yield also needs to be linked to this year's performance. Data Treasure roughly calculates the latest dividend yield situation based on the institutional forecast of earnings per share and last year's payout ratio.

The dividend payout ratio was below 100% last year, as the probability of individual stocks having a payout ratio exceeding 100% for several consecutive years is not high;

The net profit in the semi-annual report, express report, and forecast mid-value year-on-year growth or decline is below 20%;

Companies without semi-annual report information have a net profit increase or decline of below 20% in the first-quarter report;

Institutional consensus predicts that this year's net profit will grow year-on-year.

After the above screening, a total of 20 individual stocks are expected to exceed an 8% dividend yield this year. From the perspective of the predicted dividend yield, the highest is Wujin Stainless Steel, with the company's payout ratio close to 85% last year. The institutional consensus predicts that this year's earnings per share will be 0.79 yuan, and according to the aforementioned payout ratio, this year's per-share payout will reach 0.67 yuan, with the latest stock price at 5.23 yuan per share, resulting in a dividend yield close to 13%. In addition, the predicted dividend yields of individual stocks such as Xinghu Science and Technology, Bohai Ferry, Chow Tai Seng, and No. 9 Company-WD are also all above 10%.

Some companies have a high predicted dividend yield due to a decline in stock prices, such as Wujin Stainless Steel, which has fallen by nearly 26%. On the other hand, some companies with a significant increase in stock prices have an increased predicted dividend yield due to a surge in performance. Among them, Xinghu Science and Technology's net profit in the first half of the year grew by nearly 120% year-on-year, and the institutional consensus predicts that this year's net profit growth will be close to 59%. According to last year's dividend payout ratio, the potential per-share dividend for this stock this year will reach 0.6 yuan, with the latest closing price at 4.95 yuan per share, resulting in a dividend yield of over 12%.