Bank of Beijing: Surprising returns and the potential for investors
Bank of Beijing: Surprising returns and the potential for investors
The joy of the stock exchange can often be increased by clever investments in stocks. A remarkable example of this has been the Bank of Beijing Co., Ltd. (Shse: 601169), whose share price has increased by 30 % over the past three years. This increase is in a sharp contrast to a general market decline of around 17 % (without dividends). Such developments raise questions and invite you to take a closer look at the long -term performance of the company.
An interesting approach to the stock exchange is the explanation of Benjamin Graham, which described the markets as an "election machine" in a short perspective and a "scale" in the long run. This perspective suggests that the courses from shares should reflect the fundamental corporate profits over time. With the Bank of Beijing, the result per share (EPS) increased by an average of 1.3 % per year, which led to an increase in the share price. This price increase of 9 % per year exceeds the EPS growth rate, which indicates that market participants assess the company more positively than three years ago.
The importance of dividends
If you evaluate the overall performance of a share, it is important to take into account not only the price growth, but also the dividend payments. For the Bank of Beijing, the overall interest rate of shareholders (Total Shaleholder Return, TSR) results from 58 % over the past three years that the dividends make up a significant part of the yield. This number exceeds the previous stock increase and illustrates that the dividend payments have a decisive influence on the attractiveness of this share.
Over the period of one year, the shareholders of the Bank of Beijing recorded a remarkable total return of 32 %, which supports the assumption that the company has recently improved. In comparison, the annualized return over the past five years was only 7 %. This recent growth could be seen as an indicator that the company is becoming continuously stronger.
However, it remains to be mentioned that we did not analyze the dividend history of the Bank of Beijing in this context. If you want to invest in the stock, you should therefore also the view current report on dividends . In summary, it can be said that the Bank of Beijing has taken a gratifying development in recent years. The fact that the dividends contributed significantly to the entire return shows that not only the price growth is important for investors. A detailed analysis of the current financial situation and future perspectives of the bank is advisable to make informed decisions.
Kommentare (0)