Which of the 23 Indonesian Dividend Issuers is the Most Generous and Worth Collecting During Pandemic?

JAKARTA – Amidst the COVID-19 pandemic which made the economy and business struggling, a number of companies listed on the Indonesian Stock Exchange are still able to distribute dividends.

Since the beginning of the year up until April 15, 2021, as many as 23 issuers has disclosed the amount of the cash dividend for the 2020 results. Nine of them came from the banking sector.

Cash dividends in this text are limited to cash dividends distributed by the company to its shareholders which are recorded from January to April 2021, according to the announcement from The Indonesia Central Securities Depository (KSEI).

Cash dividend information is surely the news that investors who favour return of investment/ROI over capital gains have been waiting for.

One of the indicators that investors can use as a guide when making investments decisions is dividend yield. The higher the dividend yield of a stock, the more collectible the shares are.

Some of the 23 issuers offer dividend yields of less than 2%. This dividend yield is calculated from the dividend per share by the closing price of the shares as of March 31, 2021.

The lowest dividend yield was recorded by PT Bank Neo Commerce Tbk. (BBYB), which was 0,05%. The dividend yield estimation comes from a cash comparison of Rp0.23 per share in 2020 to BBYB’s closed position of Rp494 on March 31, 2021.

Apart from BBYB, three other banking stocks are categorized as dividend yields estimated at less than 2%. They are PT Bank Negara Indonesia/BBNI (0.77%), PT Bank Maybank Indonesia/BNII (0.92%), and PT Bank Central Asia/BBCA (1.39%).

Cash dividend per share against share price as of March 31, 2021, in percent.
Source: KSEI, IDX, processed.

Meanwhile, 4 stocks generate dividend yields of above 4%. The top position is occupied by PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk. (BJBR) with an estimated dividend yield of 6.58%.

The dividend distributed by the West Java government-owned bank was Rp 95.74, while on March 31, 2021 the share price was at Rp1,455.

Other banking stocks that are included in the dividend yield category of 4% above is PT Bank CIMB Niaga Tbk. (BNGA). The dividend yield estimation is 4.43%.

Also on this category are health service provider issuers PT Prodia Widyahusada Tbk. (PRDA) with a dividend yield of 4.3% and building equipment issuers PT Arwana Citramulia Tbk. (ARNA) at 4.08%.

Increase / decrease in cash dividends per share in 2020 against 2019. Source: *KSEI*, processed.

As many as 14 out of 23 issuers recorded a decrease in the amount of cash dividends per share in 2019 compared to 2019. The deepest decline occurred in Bank Negara Indonesia (BBNI) of 78.65%. If last year BBNI distributed cash dividends of Rp206.24 per share, this year the state-owned bank only distributed Rp44.02 per share.

The decline of dividend is in line with the fall in BBNI’s net profit in 2020 by 79% to Rp3.28 trillion from the previous year’s net profit.

Similar to BBNI, the amount of cash dividends per share PT Bukit Asam Tbk. (PTBA) was also tumbled to 77.12%. Last year, the coal issuers distributed cash dividends for 2019 performance of Rp326.46, compared to this year’s Rp74.5.

A landslide in the amount of cash dividends corresponds to the drop in PTBA’s net profit in 2020 by 41.17% from 2019 (year-on-year/yoy).

Meanwhile, nine issuers recorded an increase in cash dividends.

PT Solusi Bangun Indonesia Tbk. recorded the highest increase in cash dividends that is 607.94%. The Indonesian Cement Group entity distributed a cash dividend of Rp25.48 per share. Throughout 2020, SMCB’s current year profit rose 30% yoy.

PT Aneka Tambang Tbk. (ANTM) follows with an increase in cash dividends of 493.61% to Rp16.74 per share. In 2020 this state-owned mineral mining issuer made a net profit of Rp1.15 trillion, skyrocketing 492.90% yoy.

Comparison of cash dividends per share 2019-2020, in rupiah.

In terms of the amount of dividends for each share, PT United Tractors Tbk. (UNTR) is the most generous in distributing dividends. The dividend value reaches Rp473 per share. However, this year the amount of cash dividends for each share distributed by the Astra Group issuers fell 41% yoy.

PT Bank Central Asia Tbk. (BBCA) also distributed quite tempting dividends of Rp432.

There are at least six issuers that distribute dividends above Rp100 per share. Namely UNTR, BBCA, MEGA, SMGR, BMRI, and PRDA. The remaining 17 issuers distributed dividends that are less than Rp 100 per share. The lowest is BBYB, which is valued at Rp0.23 per share.

Writer: GND