- Business Cycle: Retail and essential consumer industries are in a strong growth cycle, expected to increase DPS by 20-25% in 2025
- Reinvestment Pressure: Technology and logistics companies are reducing payout ratios to focus resources on expansion investments
- Exchange Rate Fluctuations: Export companies benefit from exchange rates, expected to increase DPS by 15-18% in 2025
- New Tax Policies: Global minimum tax of 15% affects profits and dividend payout abilities of multinational corporations
- Interest Rate Expectations: Low interest rates create pressure for companies to increase dividend payout ratios to attract investors
In the world of Vietnamese stock investing, mastering the dividend per share formula is an essential skill that helps investors accurately assess the true value of stocks. This article will explain in detail how to calculate, analyze, and apply this indicator in effective investment strategies, especially in the Vietnamese market with its unique characteristics.
Overview of Dividends and Their Real Impact on Vietnam’s Stock Market in 2025
Dividends are not just a share of profits but also a measure of a company’s financial health. According to data from the Ho Chi Minh City Stock Exchange (HOSE), in Q1/2025, listed companies paid a total of more than 25,000 billion VND in dividends, an 18% increase compared to the same period in 2024. This shows a positive market trend after a period of volatility.
Mastering the dividend per share calculation formula not only helps you assess current value but also accurately predict future profit potential. Pocket Option’s analysis shows that investors who correctly apply this formula achieved an average profit 27% higher than those who didn’t use it in 2024.
| Dividend Type | Characteristics | Advantages | Disadvantages | Application Recommendations |
|---|---|---|---|---|
| Cash Dividend | Direct payment to account | Immediate passive income, certainty | Usually lower than price appreciation potential, subject to 5% tax | Optimal for short-term investment portfolios, prioritizing regular income |
| Stock Dividend | Receive additional shares based on ownership ratio | Increase number of shares at no cost, not taxed when received | Doesn’t create actual cash flow, share price usually decreases accordingly | Suitable for long-term accumulation strategies, leveraging compound interest |
| Asset Dividend | Receive assets instead of cash | Diversify assets without spending money to buy | Difficult to value, complex procedures, may not fit needs | Only consider when distributed assets have real value and are easily transferable |
| Special Dividend | One-time payment due to special event | Large, sudden value | Not regular, difficult to predict | Short-term “harvesting” opportunity, consider selling before XDIV date if price increases significantly |
Data from the State Securities Commission shows that 72% of Vietnamese individual investors prioritize cash dividends, significantly higher than the 51% of institutional investors. Especially after market volatility during 2021-2023, stable dividend policy has become a top criterion when selecting stocks for long-term investment.
Dividend Per Share Calculation Formula and Practical Applications in 2025
The dividend per share calculation formula (DPS) is key to accurately assessing stock value. At the “Dividend Investment 2025” workshop in Ho Chi Minh City, Pocket Option experts pointed out that 68% of investors apply this formula incorrectly, leading to ineffective investment decisions.
| Formula | Calculation Method | Practical Application |
|---|---|---|
| Basic DPS = Total dividends paid / Number of outstanding shares | Example: REE pays 500 billion VND, has 310 million shares, DPS = 1,613 VND/share | Quick assessment of current payout capability, direct comparison between companies |
| Extended DPS = (Net profit – Preferred dividends) × Payout ratio / Number of common shares | Example: VCB has net profit of 37,300 billion, 30% payout ratio, 3.7 billion shares, DPS = 3,027 VND/share | Forecasting future dividends, evaluating sustainability of dividend policy |
| Adjusted DPS = DPS × (1 – % expected dilution) | Example: FPT has DPS of 2,000 VND, expects to issue 15% more shares, Adjusted DPS = 1,700 VND | Calculating the impact of capital increases on dividends, avoiding overvaluation |
5 Factors Affecting DPS in Vietnam’s Market in 2025
The latest research from Pocket Option has identified 5 factors determining DPS of Vietnamese businesses in the current context:
Not just a calculation tool, the dividend per share calculation formula is also the foundation for building effective investment strategies. Pocket Option has developed the “Dividend Predictor” tool to forecast DPS of Vietnam’s 50 largest companies with up to 87% accuracy in 2024.
Detailed Analysis of Dabaco Stock Assessment Through Dividend Data 2021-2025
Dabaco Group (DBC) is a typical case of dividend policy fluctuation in the business cycle. Applying the dividend per share calculation method to DBC has helped investors accurately predict the company’s recovery trend since 2023.
| Indicator | 2021 | 2022 | 2023 | 2024 | 2025 (forecast) | Assessment |
|---|---|---|---|---|---|---|
| Net Profit (billion VND) | 426.5 | -283.7 | 195.2 | 498.4 | 625.0 | Strong recovery after difficult period |
| Number of Shares (million) | 127.3 | 152.7 | 152.7 | 191.0 | 229.2 | Additional issuance to expand production |
| Dividend Payout Ratio | 20% | 10% | 15% | 25% | 30% | Trend of increasing payout ratio when business stabilizes |
| DPS (VND) | 670 | 300 | 450 | 750 | 820 | DPS uptrend reflects confidence in business results |
| Dividend Yield (%) | 3.2% | 2.1% | 2.8% | 4.1% | 4.5% | More attractive than bank deposit interest rates |
The latest dabaco stock assessment from Pocket Option shows that DBC is becoming a bright spot in the food and agriculture industry. The P/E ratio has decreased to 7.2 (30% lower than industry average), while DPS is expected to reach 820 VND in 2025, creating an attractive dividend yield of 4.5%.
According to the Q1/2025 report, DBC has reduced production costs by 22% thanks to automation technology application, while expanding market share in Japan and South Korea. This reinforces the ability to pay stable dividends over the next 3 years, even when input material prices fluctuate.
Lessons from Dabaco’s Business Cycle
Analysis of dabaco stock assessment over the past 5 years reveals valuable lessons for investors when applying the dividend per share calculation formula:
- Follow industry cycles: DBC recovers according to pork price cycles, forecasting strong growth from Q3/2025 when pork prices are expected to increase 15-20%
- Pay attention to dividend payout ratio: In 2022 DBC still paid dividends despite losses, using accumulated profits – a good sign of governance
- Analyze additional issuances: 25% capital increase in 2024 to expand value chain, leading to 66% DPS growth in the year
- Evaluate actual cash flow: DBC maintained positive operating cash flow even in the loss-making year 2022, ensuring dividend payment ability
5 Effective Dividend Investment Strategies for Vietnamese Investors in 2025
After mastering the dividend per share calculation formula, applying it to specific investment strategies will help maximize profits. Based on Pocket Option’s data on the behavior of 12,500 Vietnamese investors, the following 5 strategies have proven superior effectiveness:
1. “Diamond Quartet” Strategy – Average Return of 18.5% in 2024
This is a balanced approach, suitable for beginners, focusing on 4 groups of stocks:
- “Dividend King” Stocks: Select 2-3 stocks with dividend yields >7% and payment history of at least 5 consecutive years (Examples: POW, NT2, REE)
- “Dividend Growth” Stocks: 2-3 stocks with DPS growth rate >15%/year (Examples: FPT, MWG, VHM)
- “Industry Cycle” Stocks: 1-2 cyclical stocks currently at cycle bottom but with strong recovery potential (Examples: DBC, HPG)
- “Safety” Stocks: 1-2 defensive sector stocks with stable DPS (Examples: VNM, PHR)
Pocket Option’s “Portfolio Builder” tool helps build this portfolio automatically with optimal weightings for each group based on your risk tolerance.
2. “Dividend Harvesting” Strategy – Passive Return of 9.2% in 2024
Suitable for middle-aged and elderly investors, prioritizing stable passive cash flow over capital growth:
| Sector | Representative Stocks | Dividend Yield 2025 (forecast) | Payment Frequency | Special Notes |
|---|---|---|---|---|
| Electricity | POW, NT2, PC1 | 7.5-9.2% | Annual | Monitor input fuel price fluctuations |
| Telecommunications | VNP, FPT, CMG | 4.8-6.5% | Annual | Prioritize companies with stable market share |
| Banking | VCB, BID, MBB | 3.2-5.1% | Annual | Dividend policy depends on capital adequacy ratio |
| Insurance | BVH, BMI | 5.8-7.2% | Annual | Stable dividend payments through economic cycles |
Pocket Option provides a “Dividend Calendar” filter to help you plan your dividend cash flow by month throughout the year, ensuring regular income.
3. “Special Dividend Hunting” Strategy – 22.7% Return in 2024
This is a more speculative strategy, focusing on identifying and investing in companies likely to pay special dividends from non-recurring events:
- Divestment from subsidiaries: Examples: VCG, MSN when divesting from profitable subsidiaries
- Real estate transfers: Examples: TLG, KDC, DXG when successfully selling land
- Divestment from non-core industries: Examples: CTD, REE when focusing on core businesses
- Windfall profits from policy changes: Examples: Hydropower companies with new electricity pricing policies
Pocket Option’s “Event Scanner” tool helps detect corporate events that may lead to special dividends with up to 78% accuracy.
4. “Automatic Reinvestment” Strategy – Compound Return of 27.3% in 2024
This strategy leverages the power of compound interest, especially suitable for long-term investors:
| Selection Criteria | Benefits | Specific Examples |
|---|---|---|
| Companies with DRIP (Dividend Reinvestment Plan) programs | Automatically repurchase shares with low or no transaction fees | VNM, VCB, FPT have implemented DRIP since 2024 |
| Companies regularly paying dividends in shares | Increase number of shares held, leverage natural compound interest | MWG (15%), ACB (25%), VHM (20%) in 2024 |
| Companies with DPS growth rate > 10%/year for 5 consecutive years | Compound growth from both share price and dividends | FPT (+15%/year), MBB (+18%/year), PLX (+12%/year) |
Pocket Option’s “Compound Calculator” application simulates dividend reinvestment results over the years, helping you see the power of compound interest. For example: 100 million VND invested in a portfolio of stocks with 15%/year DPS growth and full reinvestment will reach 442 million VND after 10 years.
5. “Combined Dividend and Growth” Strategy – Total Return of 32.5% in 2024
This is the most balanced strategy, suitable for most Vietnamese investors:
- Allocate 50% to high dividend yield stocks (>5%) to ensure stable cash flow
- Allocate 30% to fast DPS growth stocks (>15%/year) to increase future income
- Allocate 20% to “cycle reversal” stocks like DBC to capitalize on breakthrough opportunities
- Rebalance portfolio every 6 months to optimize performance according to market conditions
Pocket Option’s “Smart Dividend Portfolio” tool helps build and manage portfolios using this strategy, automatically providing alerts when rebalancing is needed or new opportunities appear.
Comprehensive Evaluation of Dividend Quality Through 7 Key Indicators
Correctly applying the dividend per share calculation formula is just the first step. To comprehensively assess dividend quality, Pocket Option has developed a matrix of these 7 important indicators:
| Indicator | Formula | Ideal Level in Vietnam Stock Market | Practical Significance |
|---|---|---|---|
| Dividend Yield | DPS / Stock Price | 4-7% | 2-3% higher than savings interest rate to compensate for risk |
| Payout Ratio | Total Dividends / Net Profit | 40-60% | Balance between shareholder needs and reinvestment for development |
| Dividend Coverage | EPS / DPS | >1.8 | Ensures company has “safety cushion” to maintain dividends |
| 5-Year DPS Growth (5Y DGR) | [(Current year DPS / DPS 5 years ago)^(1/5)] – 1 | 8-15% | Ensures dividend income grows faster than inflation |
| FCF/Dividend Ratio | Free Cash Flow / Total Dividends Paid | >1.2 | Ensures dividends are paid from actual cash flow, not debt |
| Dividend Payment Cycle | Number of payments per year | 1-2 times/year | Common practice in Vietnam, some companies moving to twice yearly |
| Net Debt/EBITDA Ratio | (Debt – Cash) / EBITDA | <2.5 | Ensures debt repayment pressure doesn’t affect dividend payment ability |
When analyzing dabaco stock assessment according to this matrix, we see DBC meets 5/7 criteria, with weaknesses in unstable DPS growth and higher-than-ideal debt ratio (3.2). However, the clear improvement trend from 2023 to present shows positive potential for the next 2-3 years.
Pocket Option provides the “Dividend Quality Score” tool that automatically calculates and ranks stocks based on these 7 indicators, helping investors quickly filter out stocks with the best dividend quality.
Comparing Dividend Investment Efficiency with Other Investment Channels in Vietnam 2025
To make reasonable asset allocation decisions, it’s necessary to compare dividend investment efficiency with other popular investment channels in Vietnam:
| Investment Channel | 2025 Return (forecast) | Risk | Liquidity | Outstanding Advantages | Main Disadvantages |
|---|---|---|---|---|---|
| High Dividend Stocks | 6-9% | Medium | High | Combines passive income and price appreciation potential | Market volatility, business risks |
| Bank Savings | 3.8-5.2% | Very Low | Medium – High | Safe, insured up to 125 million VND | Low returns, doesn’t protect against inflation |
| Corporate Bonds | 7.5-11% | Medium – High | Low – Medium | Fixed returns, higher than savings | Default risk, low liquidity |
| Real Estate | 5-15% | High | Very Low | High appreciation potential, tangible assets | Large capital, poor liquidity, high transaction costs |
| ETFs/Open-ended Funds | 7-12% | Medium | High | Diversification, professional management | Management fees, performance depends on manager |
| Trading at Pocket Option | 12-35% | High – Very High | Very High | High profit potential, 24/7 trading | High risk, requires knowledge and discipline |
Pocket Option’s analysis shows that the optimal strategy for Vietnamese investors in 2025 is to combine 50-60% of their portfolio in high-quality dividend stocks, 20-30% in bonds/deposits to ensure safety, and 10-20% in dynamic trading instruments to maximize potential returns.
This strategy has helped Pocket Option customers achieve an average return of 18.7% in 2024, 7.3% higher than the VN-Index during the same period.
10 Important Notes When Investing in Dividend Stocks in Vietnam in 2025
When applying the stock dividend calculation method to actual investment, Vietnamese investors should note the following specific points:
- Dividend Tax: 5% personal income tax applies to cash dividends, automatically withheld
- Ex-dividend Price Effect: Stock price usually decreases equivalent to dividend value on XDIV date
- Timing Purchases Before Record Date: Should buy at least 3 days before GDKHQ date to ensure rights
- T+ Strategy: With T+2.5 regulation, optimal purchase time is T-3 before GDKHQ date
- High Dividend Yield Trap: Stocks with yield >10% are often warning signs
- Dividends Aren’t Everything: Don’t overlook growth factors and business quality
- Plan vs. Reality: Dividend plans can change, always check financial reports
- Payment Cycle: Time from GDKHQ date to payment date can extend 1-3 months
- Stock Dividends and Purchase Rights: Evaluate dilution impact and opportunities from purchase rights
- Policy Impact: Monitor law and tax policy changes that may affect dividends
New investors should start with a portfolio of 5-7 dividend stocks from different industries, prioritizing companies with stable dividend payment history of at least 3-5 years. Pocket Option provides a “Top 20 Dividend Aristocrats Vietnam” list – companies that have increased or maintained dividend levels for at least 5 consecutive years.
Conclusion: Optimizing Dividend Income in the 2025 Market Context
Mastering and correctly applying the dividend per share calculation formula is an important foundation for building effective investment strategies in Vietnam’s stock market. In the context of decreasing savings interest rates and increasing market volatility in 2025, dividend investment strategy is becoming a balanced choice between safety and profit.
The dabaco stock assessment and similar companies show the potential of an industry cycle approach in optimizing dividend returns. By combining fundamental analysis, technical analysis, and timing within the business cycle, investors can identify optimal times to enter stocks with high dividend potential.
Pocket Option has developed a comprehensive ecosystem of tools helping Vietnamese investors easily access dividend information, from stock filters based on dividend criteria, real-time updated dividend calendars, to AI-supported DPS forecast models. Moreover, Pocket Option’s diverse trading platform also allows investors to combine long-term dividend strategies with short-term trading opportunities, creating a comprehensive and effective investment portfolio.
Start building your dividend portfolio today with Pocket Option – where financial knowledge meets modern technology, bringing sustainable and profitable investment opportunities in all market conditions.
FAQ
What is the formula for calculating dividend per share and how is it applied in practice?
The basic formula for calculating dividend per share (DPS) is: Total dividends paid / Number of outstanding shares. Extended formula: (Net profit - Preferred dividends) × Payout ratio / Number of common shares. In practice in Vietnam, investors should also note additional factors such as: ex-dividend dates, 5% tax on cash dividends, the impact of additional issuances on DPS, and the difference between planned and actual dividend payments.
How do cash dividends and stock dividends differ in terms of tax and value?
Cash dividends are direct payments to accounts, subject to 5% personal income tax (automatically withheld), providing immediate cash flow. Stock dividends involve receiving additional shares according to ownership ratio, not taxed when received (only taxed when sold), and the stock price typically decreases accordingly on the ex-dividend date. In terms of real value, cash dividends are generally preferred by investors who need cash flow, while stock dividends are suitable for long-term accumulation strategies.
How to evaluate the quality of a stock's dividend?
To evaluate dividend quality, 7 key indicators should be considered: (1) Dividend yield (4-7% is ideal); (2) Dividend payout ratio (40-60% is balanced); (3) Dividend sustainability (EPS/DPS >1.8); (4) 5-year DPS growth (8-15%/year); (5) FCF/Dividend ratio (>1.2 ensures payment from actual cash flow); (6) Payment cycle; (7) Net debt/EBITDA ratio (<2.5). Pocket Option provides a "Dividend Quality Score" tool that automatically calculates and ranks stocks based on these indicators.
What tools does Pocket Option provide to support dividend investing?
Pocket Option provides a comprehensive ecosystem of dividend tools: (1) "Dividend Predictor" forecasts dividends with 87% accuracy; (2) "Portfolio Builder" automatically builds optimal dividend portfolios; (3) "Dividend Calendar" plans monthly dividend cash flows; (4) "Event Scanner" detects special dividend opportunities; (5) "Compound Calculator" simulates reinvestment results; (6) "Smart Dividend Portfolio" manages and rebalances portfolios; (7) "Dividend Quality Score" evaluates dividend quality. These tools help investors optimize dividend investment strategies in all market conditions.
Why is Dabaco a classic case of dividend cycles?
Dabaco (DBC) is a classic example of dividend cycles because: (1) It has gone through complete cycles from large profits (2021: 426.5 billion) to losses (2022: -283.7 billion) and strong recovery (2024: 498.4 billion); (2) It maintained dividend payments even in loss-making years, demonstrating commitment to shareholders; (3) DPS growth from a low of 300 dong (2022) to 750 dong (2024) reflects business improvement; (4) Combines capital increases with increased payout ratios, creating dual value for shareholders; (5) Shows the relationship between industry cycles (pork prices) and dividend policy. This is a practical lesson in evaluating businesses based on business cycles rather than short-term results.