Orient Commercial Bank (OCB) has issued a resolution approving the payment of a 2024 cash dividend. The last registration date to be eligible for the dividend is 18/7.

The dividend payment, totaling 1,726 billion VND, will be made from retained earnings after setting aside funds for various purposes. This translates to a 7% dividend yield, with each share receiving 700 VND.

This marks OCB's first cash dividend since its initial public offering in early 2021. Previously, the bank primarily distributed stock dividends or bonus shares to increase its charter capital.

This year, OCB is among nearly 10 banks announcing plans for cash dividend distributions. For shareholders, especially long-term investors, cash dividends are often the preferred option. According to VPS Securities, companies that consistently pay cash dividends tend to have sound and transparent financial positions. This is an attractive feature for investors seeking high returns, direct cash payments, and a sense of security and stability.

On the stock market, OCB shares are currently trading near 12,000 VND per share, a 7-8% increase since the beginning of the year.

Recently, the State Bank of Vietnam also approved OCB's charter capital increase through the issuance of shares from equity, up to nearly 1,973 billion VND. OCB plans to issue nearly 197.3 million shares to increase its share capital from equity sources, at an issuance rate of 8%, expected to be implemented this year. If successful, OCB's charter capital will increase from 24,658 billion VND to over 26,630 billion VND.

Quynh Trang