TSMC’s Q2 dividend rate is only 30%, and the low dividend has become a high price for this matter | Anue Juheng – Taiwan Stock News

Taiwan Equity King TSMC (2330-TW) held the board of directors yesterday (9) to approve the distribution of the second quarter cash dividend of 2.75 yuan, and set the ex-dividend on 12/21 at the end of this year, including the 6th consecutive quarterly dividend of 2.75 yuan, many retail investors The expected quarterly dividend of RMB 3 failed again.

Moore Investment Advisor Zhang Yicheng pointed out that in the second quarter of this year, TSMC’s report card exceeded the financial forecast high standard, and the EPS profit of 9.14 yuan in the second quarter exceeded market expectations. The interest rate is as low as 30.08%. According to the latest financial estimates, the peak season of the third quarter will be better than that of the second quarter. If the interest rate in the next quarter does not increase from 2.75 yuan, then the next interest rate may be higher. If it falls below 30%, TSMC may be labeled as a low dividend and low yield.

Analyst Zhang Yicheng said that TSMC’s first quarterly dividend of 2.75 yuan was in the first quarter of 2021. At that time, the EPS earned 5.39 yuan in the quarter, and the conversion distribution rate of 51% still remained at the 50% mark. However, the quarterly dividend is not fixed. However, when EPS reaches a new high every quarter, the dividend rate will drop straight down.

At TSMC’s shareholders meeting in June, shareholders asked when the company would raise its dividend to 3 yuan. At that time, Chairman Liu Deyin said that the company was in a period of rapid growth and needed capital to be invested and reinvested. Once the growth slowed down, the dividend would increase. . In fact, it is also indirectly stated that the low interest distribution is the price of 3 years of capital expenditure of 100 billion US dollars. Behind the advanced manufacturing process and high growth, it is supported by a large amount of cash.

In addition, analyst Zhang Yicheng pointed out that TSMC’s quarterly dividend of 2.75 yuan is equivalent to a one-year dividend of 11 yuan. If this expectation is divided by the stock price of 500 yuan, the yield rate is only 2.2%, which is much lower than that of the United States. 10-year Treasury yield Between 2.7% and 2.8%, this is still the result of a decline in U.S. Treasuries from 3.5% in June. This will make it difficult for long-term funds pursuing yield rates to pay for the current TSMC situation, resulting in the dilemma that many legal entities cannot cut the lows, but it is difficult to increase their overweight. Therefore, TSMC must give more and stronger reasons to let Only when the legal person enters the market and chases the price will it have a chance to return to glory.

For more Taiwan stock analysis, you can join Zhang Yicheng’s analyst LINE@fan group to follow.

[Analyst Zhang Yicheng – foreign capital super-money line]

Legal person experience: Former foreign trader at Citi Trading Room, former foreign trader at Barclays Hong Kong

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