As the interest rate of bank deposits continues to decrease, the interest that can be obtained every year by saving money in the bank is very small. For example, the three-year interest rate of state-owned bank deposits is only 2.2%. The stock dividends of state-owned banks can reach more than 5% every year. So, does this mean that buying bank shares for dividends is more reliable?

[Data Map]

Is it reliable to buy a bank and get 5% dividend every year?

According to the profit distribution of the six state-owned banks in the previous year, the dividend rate reached more than 5%, the lowest was 5.3%, and the highest was 6.7%, which seemed much better than the existing banks.

Moreover, the profits of state-owned banks are stable, and there is no need to worry too much about the last meal. According to the dividend distribution of several state-owned banks over the years, there are basically cash dividends every year.

Take a state-owned bank as an example. If you buy it at the issue price when it was listed, you can recover all the investment costs in the ten years after the listing only by its cash dividends.

The current share price of the bank is about 4.6 yuan. Since the investment cost has dropped below 0 yuan, it is equivalent to a net profit of 4.6% yuan. After taking into account the gains from rising stock prices, the return on investment in the bank stock exceeded 8%, which is undoubtedly higher than the interest rate of the bank.

In addition, according to the dividend distribution of the bank over the years, its dividend per share also shows an upward trend. For state-owned banks, as long as the country's economy is growing, its assets can continue to grow, its profits can also continue to grow, so its dividend can also continue to grow.

As for the problem that the stock price will fall after dividends, it is not a problem in the stock of state-owned banks. Just like the state-owned bank mentioned above, although the dividend has exceeded its issuing price, the stock price has not fallen below 0 yuan, but has also risen a lot.

Because in the long run, as long as profits are stable, the stock price will fall due to dividends, and the rate will probably rise back. The reason why dividends cause stock prices to fall is that the company's assets will decrease after dividends. For state-owned banks, the assets reduced due to dividends every year may not be earned back in half a year.

It can be seen that buying a state-owned bank's stock, if you can get a dividend of about 5% every year, it is actually more reliable.

In addition, if you want to gain more benefits, you can also improve from the following aspects.

First of all, try to buy stocks when the bank stock price is low. The dividend yield is not only related to the amount of stock dividends, but also related to the cost of buying stocks. For example, for the same stock, when the purchase cost is 3 yuan, the dividend yield is 5%, while when the purchase cost is 6 yuan, the dividend yield is only 2.5%.

Therefore, try to buy when the stock price is low, and the dividend yield will be higher. If we can go further, we can continue to sell at a high price and absorb at a low price, which will reduce the cost of positions.

Secondly, dividend reinvestment strategy can be adopted. Dividend reinvestment is to continue to use the cash dividends received each year to buy bank shares, and this benefit is to enjoy compound interest growth.

If you buy a bank stock with 100000 yuan, the annual dividend rate is 5%. If you do not need to reinvest dividends, it will take 20 years to recover the cost. If the dividend is reinvested, the cost can be recovered in about 15 years.

Therefore, if it is to prepare for long-term investment, it is undoubtedly more advantageous to use dividend reinvestment.