Return on Sberbank shares for individuals: dividend payments and terms

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Storing up to 1.4 million in bank deposits is the safest financial decision, however, few investors can inspire such a decision. The key rate of the Central Bank continues its slow but steady decline, and with it the attractiveness of most banking products is falling. But you should not completely turn away from such a financial institution as a bank. You can become a shareholder. The profitability of Sberbank shares shows amazing stability against the backdrop of all economic and political events. Sberbank has been and remains one of the blue chips in the stock market of Russian companies. Most investors have Sberbank shares in their portfolio.

What makes up the profit?

Possession of a block and profitability of Sberbank shares suggests two ways to make a profit. This is the profit from the difference in the purchase price and the sale price, as well as the dividends paid. If you are counting on dividend income, you must be the owner of the share at the time the dividend register is closed. In the stock market, this date is called a dividend.cut-off. It must be borne in mind that when making a share purchase transaction, you do not become the owner immediately, but the next day or even the day after.

One more feature of the securities market, in particular shares, is connected with the dividend cutoff. As soon as the exact amount allocated for the payment of dividends becomes known, the shares instantly fall in price. The fall directly depends on the size of the established payments. This is called a dividend gap. Investors trading on the stock market are well aware of this feature, so they have information about the so-called dividend calendar.

Regular or Preferred

Those who have already been interested in the possibility of buying Sberbank securities know that the bank issues both ordinary and preferred shares. The return on Sberbank shares for individuals at first glance is the same, regardless of the type of paper. But the cost of one preferred share is significantly different from the cost of ordinary shares. What is its advantage? Dividend payouts for ordinary shares are not exactly known in advance and are set depending on the profit of the campaign for the past period. It is possible to predict, based on the previous values, how much the dividend income from holding a common share will be. Preferred shares are a different story. This is a fixed, known income from the payment of dividends, regardless of the success of the commercial activities of the enterprise.

Sberbank stock returns

Dividend Policythe largest bank in Russia one of the most stable. Shareholders receive regular payments. More importantly, as the share price rises, so does the percentage of dividends paid.

However, the main income is provided, of course, not by payments, but by the opportunity to speculate with the investor's portfolio of securities. Despite the fact that Sberbank shows stable growth, the share price of the largest bank still fluctuates, sometimes quite significantly. Experienced speculators are able to profit from this even more than 100%. In fairness, it is worth saying that such results are available only to aces, given the constant immersion in the stock trading market. What is the return on Sberbank shares for their ordinary holders? Let's try to understand on concrete examples.

What drives yield growth?

The average investor should not expect huge returns from long-term stock holdings. If we take into account only the benefit from dividends, the annual average return on a Sberbank share fluctuates between 4-5% for ordinary shares and about 6% for preferred shares. The figures are not the highest. Lower than deposit rates at many banks.

But the investor always reserves the right to win on the timely sale of a package of securities. The main thing is to choose the most suitable moment, both for buying and for selling. However, the main percentage of Sberbank shareholders, as statistics show, are adherents of conservative investment and earn on a steadyincrease in the bank's share price.

Yearly analysis

According to the results of the last 2017, PJSC Sberbank exceeded the forecasted profit by 20%. As a result, dividend payments have increased. And they will probably continue to grow. In any case, the payout rate remains at the level of 36%.

Of course, this year has been full of events both economic and political. But in all these vicissitudes, Sberbank remained stable, and sometimes showed tremendous growth. So, at the end of February, the price of one paper soared to a record 280 rubles. Good growth was shown by the value of shares in May and early July - in the region of 230 rubles. But in general, over the past year, the price and profitability of Sberbank shares remained at the same stable level. The share price both last October and now fluctuates around 190 rubles.

Analysis over 10 years

More interesting is the analysis of the profitability of Sberbank shares over 10 years. In general, unlike the Western market, the Russian securities market is not usually analyzed in this perspective. The economy is too young and unstable. And if, say, in the United States, securities purchased for 10-30 years are considered long-term investments, then with us it is a maximum of 3 years. But the good thing about Sberbank of Russia is that it is one of the most stable representatives of Russian blue chips and a favorite in the banking sector.

So, what was the return on Sberbank shares over the past years? As for the price of securities, the most difficult year, like for many other financial institutions, was 2014. The price dropped to almost 50 rubles. ButSberbank always quickly returns to its positions, for which speculative investors love it. Since the end of 2014, the price has been steadily creeping up. During the year, the price of the asset doubled, which is a very good and rather rare indicator for the stock market. What is even more interesting, according to all laws, such a systematic and active growth should be followed by a price decline or its fluctuation at approximately the same level, but the shares continued to grow, and by March 2016 they reached a value of 112 rubles. This corresponds to an annual income of as much as 140.16%.

As for the dividend income on Sberbank shares, over 10 years it has grown almost 12 times. Very revealing figures and a very impressive analysis. It should be said that such confident indicators are very rare not only for the Russian, but even for the international stock market.

Risks

The stock market is extremely dynamic. In the context of one trading day, the price of any security can change significantly both upwards and downwards. Sberbank shares are by no means an exception. At first, experienced investors recommend conservative trading without active speculation. Moreover, the securities of Sberbank of Russia PJSC are the best suited for these purposes, and will provide a decent income in almost any scenario.