Dividends on VTB up shares in 2021 - size and register closure date

Statistical indicators

These indicators are calculated for 3 years.

Market analysis from VTB Group analysts

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Share price of “VTB – Global Dividend Fund”

The share price as of November 8, 2021 is 55.88 rubles, NAV is 408,308,514.44 rubles.

Recent price

The table “by month” shows the price for the last day of the month.

Change in unit value over 12 months

• Return for 12 months: 12.95%
• If you had invested 100,000 rubles on April 1, 2021, you would have received 112,947.51 rubles.

Here is a chart of changes in the value of the mutual fund "VTB - Global Dividend Fund":

• share profitability
• benchmark index return

Change in share value over 3 years

• Return over 3 years: 18.97%
• If you had invested 100,000 rubles on April 1, 2015, you would have received 118,969.06 rubles.

See the chart of changes in the value of the VTB Global Dividend Fund share for 36 months:

• share profitability
• benchmark index return

Dividend policy

Another nightmare of a VTB shareholder is the issuer’s unclear policy. Let's start with the fact that there is no direct VTB policy. The Charter stipulates that the company must pay at least 25% of net profit according to IFRS. As a state-owned company, VTB must pay 50% of net profit under IFRS.

Mr. Kostin (head of VTB) promised that the bank would pay 50% of profits by the end of 2021. Until this time, the bank distributed approximately 25-30% of profits, as stated in the Charter.

However, the Charter refers only to ordinary shares. Let me remind you that VTB’s capital consists of ordinary and preferred shares. All preferences and most of the customs belong to the state. It is clear that the bank will not offend its owner, so it actually distributes dividends among all types of shares, and in a very interesting way.

The bank makes sure that the dividend yield of each type of stock is the same. For preferred shares, such yield is determined in relation to the par value (0.01 rubles for the first type and 0.1 rubles for the second), and for ordinary shares - based on the average share price for the year.

And here’s another interesting article: Severstal dividends in 2021: should we expect a reduction in payments?

In effect, this means that each subsequent issue of ordinary and preferred shares reduces the dividend per share. Even if the bank pays stable dividends, the yield will fall only due to share dilution. In relation to minority shareholders, this is generally dishonest, since the preferred shares do not even go into circulation, but are immediately sold to the state at par.

Similar mutual funds

How do we determine the similarity of mutual funds to each other?

Show all mutual funds from the database

How to buy VTB shares and receive dividends

To purchase securities, you must open a brokerage account. This can be done from representatives of the MSE (Moscow Stock Exchange) - licensed brokers.

Best brokers

Reliable Russian brokers

The list of the best brokers includes the following companies: ZerichCapital, VTB 24, BCS, Aton, Alfa Bank, Promsvyazbank, Otkritie broker, Sberbank.

Warning about Forex and BO

Forex and BO are in no way connected with company securities. There are no regulators here.

Shares can only be purchased through brokers who are licensed by the Central Bank.

What will happen to VTB next?

In 2021, VTB seems to suffer more than other banks. About 80% of its profit comes from serving corporate clients. And now most businesses are closed, the percentage of bankruptcies is growing, as are non-repaid loans. Bloomberg analysts predict that VTB will decline in revenue by 18% and net profit under IFRS by 2.5 times.

In such conditions, the government decided not to suck dividends from the bank (after all, it would then have to give the bank money back in order to recapitalize it), but to immediately leave the money to form reserves.

Dmitry Pyanov, a member of the bank’s board, promises that by the end of 2020, VTB will return to the practice of paying 50% of net profit under IFRS. No not like this. I quote: “The bank allows the possibility of returning to the payment practice.” That is, maybe it will, maybe not. Considering how many times the bank has let its shareholders down, I'm leaning towards the latter. I think other shareholders do too.

And here’s another interesting article: How to save up for an apartment, even if you have a small salary

There is also a point - even if the bank returns to the practice of paying 50% of net profit, then what will be the size of this net profit? What if the bank decides to recapitalize by issuing another block of shares, which will be directly transferred to the government or other key shareholders?

Is it worth buying VTB shares?

• Yes, for the future 43%, 16 votes
  16 votes 43%

  16 votes - 43% of all votes

• Of course not! 43%, 16 votes

  16 votes 43%

  16 votes - 43% of all votes

• It's time to short! 8%, 3 votes

  3 votes 8%

  3 votes - 8% of all votes

• Yes, for the sake of dividends 5%, 2 votes

  2 votes 5%

  2 votes - 5% of all votes

Total votes: 37

09.08.2020

In general, all this is doubtful. I would not add VTB shares to my portfolio, especially since the Moscow Exchange has shares of more attractive financial sector issuers - Sberbank and Tinkoff (TCS Group). Given the paltry 2020 dividends and dubious prospects, I don't expect there to be a rally at VTB. More like a fall. But let's wait and see. Write in the comments what you think about it. Good luck, and may the dividends be with you!

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