JAKARTA – For investors who are motivated to become dividend hunters, every March and April there will be many General Meetings of Shareholders (GMS). One of the important agenda is the discussion of dividend distribution. In this month of Ramadan, dividends can be an alternative to increase the holiday allowance (THR).
Every investor has a variety of goals when buying shares. There are those who become short-term stock investors on a daily basis, known as traders. The goal is to get cash quickly from rising stock prices.
Dividend hunters are usually long-term investors. If the company we own experiences a profit, then we will get a 'splash' from the profit based on the number of shares owned.
The amount of dividends received by investors varies, it can reach trillions of rupiah if there are many shares owned and the amount of dividends distributed is also large. The greater the dividend, the greater the wealth owned by shareholders.
For daily investors, they will usually take advantage of the moment before the distribution of dividends, because the price of issuers who will distribute dividends will soar. However, novice investors should be careful with the dividend trap, which is a market phenomenon that appears before the distribution of dividends.
Towards the last date of purchase of shares or cum date share prices tend to rise. However, after one day later or exdate, investors will take profit so that the price declines.
Issuers that are still in the growth stage will generally share a smaller dividend yield. Some of their profits will be used for business development, such as technology companies. Meanwhile, established companies such as Unilever will provide higher dividend yields.
Dividend yield is the ratio of the amount of dividends that will be received by investors to the stock price. Investors will be more profitable if the dividend yield is high.
For example, issuer XYZ distributes a dividend of IDR 300 per share at a price of IDR 4000. So the dividend yield is IDR 300 : IDR 4000 = 7.5 percent.
The increase in sales and increase in net profit will affect the amount of dividends that will be distributed to investors.
Impact on the Stock ExchangeSo what is the impact of the dividend distribution of these issuers on the stock market? Considering the number of issuers who share issuers is not much.
Mirae Securities senior analyst, Teguh Kurniawan, who was contacted by VOI assessed that investors will respond positively to dividend distribution amid weakening stock prices. Moreover, issuers have not used their retained earnings maximally for expansion. The reason is that the economy is still slowing down.
Teguh believes that the dividend yield of at least 2-3 percent is quite attractive. But according to him, yield is not something that needs to be considered because it does not fully reflect the returns received by investors. Then look at the growth in dividends per share.
Unilever (UNVR) among investors is known to be generous in distributing its dividends, which is almost 100 percent of its net profit. That's because the company is not in its infancy.
Last year Unilever's net profit reached Rp7.16 trillion. Of that amount, as much as Rp. 7.13 trillion was distributed as dividends. Investors receive a dividend of IDR 187 per share with a dividend yield of 4.6 percent.
There are issuers who share their profits more than 50 percent of their profits, but some are not that big. Several issuers have announced that they will share their profits through PT. The Indonesian Central Securities Depository (KSEI) is Bank BCA, Bank BRI, Semen Indonesia, and Sido Muncul.
Investors who want to know which issuers pay large dividends, the Indonesia Stock Exchange has the IDX High Dividend index of 20, which contains 20 issuers that distribute large dividends.
The strengthening of the IDX High Dividend 20 index throughout 2022 was recorded to have strengthened by 11.4 percent. The return distributed is even greater than the Composite Stock Price Index (JCI) which shares a gain of 7.94 percent.
Of the 20 issuers, 12 issuers of the index have released their annual financial reports for the 2021 period. The strengthening of financial performance was due to the diversification factor carried out by residents of this index throughout the year.
PT Bank Rakyat Indonesia Tbk distributed the largest cash dividend, which was Rp. 26.4 trillion, while PT Indo Tambang Raya gave the largest dividend per share, which was Rp. 1,218 per share and cash at Rp. 3040 per share. PT Indo Tambang Raya's profit soared 12 times in 2021.
While Adira Dinamika Multifinance provides a dividend yield of 6 percent, Hexindo Adiperkasa provides a dividend yield of 19.43 percent, and Mitra Pinasthika Mustika with a dividend yield of 10 percent annually.
Investors who want to get large dividends, of course, need large investment funds as well. Like Lo Kheng Hong, nicknamed the Warren Buffet of Indonesia, he received dividends from several issuers, one of which was Gajah Tunggal with a share ownership of 5.1 percent.
Last year, Gajah Tunggal's total net profit was Rp320.37 billion, and the dividends distributed were 10.87 percent. It is estimated that Lo Kheng Hong will receive a dividend of IDR 1.77 billion.
Lo Kheng Hong also owns a 15.01 percent stake in Petrosa Tbk. In 2021, Petrosa will distribute dividends of Rp. 115 per share from its 2020 financial performance. The dividends received by Lo Kheng Hong are estimated at Rp. 17.41 billion.
Investors generally take advantage of dividends in addition to income as well as to reduce losses from a stock. For example, an investor loses 10 percent of ABCD's shares but the issuer distributes a dividend yield of 7 percent, meaning that losses can be minimized by only 3 percent.
Financial statements with positive performance will certainly have an impact on the distribution of dividends and provide attractive returns. Dividends distributed during the Ramadan period can certainly be additional income apart from THR.
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