AGM 2026 sees surge in stock dividends as banks and other firms announce high stock dividend ratios

Stock dividend payouts have become a broader strategic choice beyond simple cash distribution. They reflect long-term capital, growth, and risk management considerations in a changing environment. During the 2026 AGM season, spanning banks to large listed firms, there is a marked tilt toward stock dividends, attracting investor attention. The wave of stock-dividend announcements For example, in the banking sector, VPBank (VPB) is expected to distribute total dividends of more than 31%, with only 5% in cash; the remainder will be paid in stock. HDBank (HDB) plans to pay 30% entirely in stock, while MBBank (MBB) combines 10% cash with 15% stock. SeABank (SSB) is expected to pay over 20.5% in stock, MSB (MSB) and Nam A Bank (NAB) plan to issue 20% in stock, and KienlongBank (KLB) projects up to 29.5% in stock to bolster charter capital. VIB (VIB) keeps a 9% cash dividend but adds 9.5% in stock bonuses. Likewise, ACB (ACB) plans a total dividend of 20% with 7% cash and 13% stock. In the steel sector, Hoa Sen Group (HSG) is set to pay stock dividends for the 2024-2025 financial year at 30%. The total stock to be issued is about 186.3 million, with post-issuance shares around 807.3 million. Hoa Phat (HPG) plans a 15% dividend with 10% in stock and 5% in cash. In energy, GELEX (GEX) expects a stock dividend of 25% and an additional 20% stock bonus. In retail, FPT Retail (FRT) even after a reduced dividend rate still chooses 5% in stock rather than cash. In real estate, DIC Corp (DIG) plans a 6% stock dividend while planning to borrow and disburse substantial funds to projects such as Chi Linh Central and Bắc Vũng Tàu. Phát Đạt Real Estate Development (PDR) proposes issuing a 10% stock dividend and an additional offering to raise nearly VND 2,000 billion for M&A and new project development. Two-sided impacts of the trend Experts say the core reason for the rise of stock dividends is the need to increase charter capital. In banking, stricter capital adequacy rules push retained earnings to the top of priorities; many banks choose stock dividends to bolster capital, improve CAR, and create room for credit growth. This is especially important as lending is expected to rebound as the economy stabilizes, requiring banks to maintain a robust capital buffer to expand lending without breaching regulations. Capital increase is seen as an unavoidable trend for banks. A thicker charter capital not only provides a solid financial cushion to weather economic volatility and support technology investment and credit growth but also helps meet tougher regulatory standards. Not only in banking, many listed firms are adopting similar approaches. Stock dividends help preserve cash for reinvestment and expansion, especially when the cost of capital remains high and the business environment carries risks. Another factor is a shift in corporate governance thinking: whereas cash dividends were once a primary attractor for investors, many firms now prioritize long-term growth. Bonus stock does not reduce cash flow and can increase market capitalization and liquidity. Policy also plays a role. New regulations on capital adequacy make cash dividends harder to justify, favoring firms with solid financial fundamentals to pursue safer stock-dividend routes. In positive terms, retaining earnings for reinvestment can increase intrinsic value over the long term, and larger charter capital enables broader growth, benefiting the banking sector by strengthening competitiveness and risk resilience. Stock bonuses can also improve market liquidity as more shares are outstanding and trading activity rises. However, there are downsides: the risk of earnings-per-share (EPS) dilution if profits do not grow in line with the increased share count. This is particularly relevant for firms paying high stock-dividend ratios without robust, sustainable business performance. Additionally, stock dividends do not provide immediate cash to investors; some investors still favor cash payments, so the lack of cash dividends may reduce short-term appeal. Read more on related topics and other articles in finance and other sectors for broader context.