Good News For Stock Investors, Mirae Sekuritas Predicts Dividends Will Be More 'Flood' In 2022 Than In 2021

Illustration. (Photo: Doc. Antara)

JAKARTA - The IDX High Dividend 20 Index is expected to be brighter this year compared to 2021. This is due to a number of issuers paying out larger dividends, even above analyst expectations.

Mirae Asset Sekuritas analyst Handiman Soetoyo said that welcoming the dividend distribution season in early 2022 was quite bright. First, he saw the Nine-month 2021 profit from several issuers that experienced improvements.

"Looking at the profits and revenues in the three quarters of 2021 from key companies in the financial, commodities, health, logistics, and industrial sectors, it shows that their profits are generally increasing, which means they can pay out bigger dividends," he said in the research, quoted on Tuesday, January 1.

Several issuers distributed higher interim dividends, including PT Indo Tambangraya Megah Tbk. (ITMG) which distributed dividends of IDR 1,218 per share, much higher than 2020's only Rp307 per share. Second, with the improving economic situation, Mirae Asset believes that there will be a larger dividend distribution this year, from companies that also regularly distributed large dividends last year.

"Financial issuers are likely to pay higher dividends this year compared to last year. For the record, last year's full-year dividends in the banking sector were a bit disappointing because 2020 earnings were less than expected," he explained.

However, he mentioned that four major bank issuers, namely BBCA, BBRI, BMRI, and BBNI, have recorded a profit increase of around 30-85 percent throughout the 11 months of 2021. Mirae estimates that only Bank Mandiri (BMRI) will be able to distribute dividends above 4 percent in 2015. this. Furthermore, the new member of IDX High Dividend 20, Adira Finance (ADMF) is expected to provide a stable yield of 6.5 percent of its income.

Meanwhile, those looking for higher yields can bet on small-cap stocks such as LPGI and PANS which have shown consistently high dividend payouts in the last 10 years. Furthermore, commodity-related stocks are also expected to pay higher dividends compared to last year, such as ITMG and ADRO.

"Nevertheless, PTBA's dividend is still disappointing because of the high required capex," he said.

Similarly, the issuer which has just entered the index, Hexindo Adiperkasa (HEXA) is also expected to produce double-digit yields and can survive this year given its revenue which grows quite strongly.

Meanwhile, the stocks that Mirae Asset recommends to distribute dividends throughout 2021 from the IDX High Dividend 20 range are ADMF, ADRO, BMRI, BSSR, HEXA, HMSP, INDF, ITMG, MPMX, PTBA, TLKM, and UNTR.

"These stocks were chosen in terms of their consistency in paying dividends and their potential yield of at least 4 percent," Halim concluded.