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The latest high dividend yield potential stocks are here.

On August 27th, the dividend sector once again took the lead in the market, with both the petroleum and petrochemical 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 more than 20% year-to-date, outperforming the A-shares. Multiple stocks such as Nanjing Bank, Bank of Communications, and Agricultural Bank have accumulated increases of over 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 preference, and the pursuit of stocks with high certainty of dividend yield. At the same time, some stocks with high dividend yields have unexpectedly experienced significant adjustments. What are the underlying reasons?

Li Ba shares had a dividend yield of over 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, Li Ba 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 of over 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 of over 20%. The high dividend yields of Li Ba shares and Quartz shares are mainly due to the significant drop in their stock prices, with Li Ba shares falling by more than 27% within the year, and Quartz shares plummeting by nearly 57%.

Many of the companies that made the list did so because their stock prices have been severely beaten down, thus resulting in a high dividend yield calculated based on last year's dividends. For example, Wuhan Blue Electricity fell by nearly 50% within the year, distributed dividends exceeding 100 million yuan last year, with 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 fell by more than 40%, while Tiangang Shares, Huayang Racing, and Hao Xiang Ni fell by more than 30%. The only stocks that rose in price were Rong'an Real Estate and COFCO Sugar, with Rong'an Real Estate distributing dividends of over 1 billion yuan last year, the latest market value of less than 7.2 billion yuan, resulting in a dividend yield of over 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 due to a significant drop in stock prices for some companies is not truly reliable. For instance, investors in Quartz shares will certainly 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's. Fundamentally, it will be 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 yields. Among the 15 companies that have disclosed their semi-annual reports, 13 have seen a decline in net profits, with 9 companies experiencing a drop of more than 30%. Out of the 4 companies that have announced performance forecasts, 3 are expected to decline, and the decreases are 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 dividends, which also determines that it is hard for most companies to meet the dividend yield target.

Revealing the stocks with a dividend yield of over 8% 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 per-share earnings forecasted by institutions and last year's payout ratio.

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

The net profit in the semi-annual report, express report, or forecast shows a year-on-year increase or decrease of less than 20%;

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

Institutions unanimously predict that this year's net profit will grow year-on-year.

After the above screening, a total of 20 stocks are expected to have a dividend yield of over 8% this year. From the perspective of predicted dividend yield, the highest is Wujin Stainless Steel, with the company's payout ratio last year close to 85%. Institutions unanimously predict that this year's earnings per share will be 0.79 yuan. Based on the aforementioned payout ratio, this year's per-share payout is expected to 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 stocks such as Xinghu Technology, Bohai Ferry, Chow Tai Seng, and No. 9 Company-WD are also over 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 a rising predicted dividend yield due to a surge in performance. Among them, Xinghu Technology's net profit in the first half of the year grew by nearly 120% year-on-year, and institutions unanimously predict that this year's net profit growth will be close to 59%. Based on last year's dividend payout ratio, the potential per-share dividend for this stock this year is expected to reach 0.6 yuan, with the latest closing price at 4.95 yuan per share, resulting in a dividend yield of over 12%.