Bank stocks in the market, because of their high profits and dividends, are also a good choice if they are held for a long time to eat dividends, especially those of several state-owned banks. So, if you save 1 million to buy ICBC's **, is it feasible to go to work just by eating dividends?
ICBC is a leading enterprise in the banking industry, not only the bank with the largest assets in China, but also the bank with the most profits. Because of this, ICBC's first-class dividends are also relatively large and stable, and it has been working tirelessly to distribute cash dividends every year for ten years.
For example, in 2023, the dividend amount of ICBC will reach 108.1 billion yuan, which is the enterprise with the most dividends on the A** field and the only enterprise with dividends of more than 100 billion yuan.
So, if you buy 1 million yuan of ICBC, how much interest can you get every year?
At present, ICBC's ** is about 5 yuan, and 1 million can buy about 200,000 shares. ICBC's dividend plan for 2023 is 305 yuan, 200,000 shares can be divided into 6A dividend of 10,000 yuan is equivalent to a dividend of 5,000 yuan per month.
I have to say that this ** interest rate is still very good. If you keep the money in the bank, the interest may be less than half. And I believe that there are many people whose annual income has not yet reached 60,000 yuan, because the per capita disposable income in China in 2023 will not reach 40,000 yuan.
Therefore, as long as ICBC's dividends can remain stable, and it does not pursue a high-quality life, it is not impossible to buy 1 million ICBC's ** and live only on interest without going to work, but there are still some prerequisites.
First of all, it needs to be held for a long time. One thing you need to know is that dividends don't equal earnings. Because after the dividend is paid, the stock price will be lowered accordingly, and if the stock price fails to rise back to before the dividend, then the income will be less than the dividend, and it may even be negative.
Of course, as long as you don't sell it, even if it is a negative return, there will be no actual loss. Dividends are actually paid to the account and can be withdrawn.
Therefore, as long as you hold ** for a long time and the dividends are stable, no matter what the income is, it will not affect the dividend income. However, if you want to sell often, unless you can sell high and buy low, your income may be very unstable, and there may even be actual losses.
In addition, if you sell within one year after dividends, you also need to pay personal income tax, with a maximum tax rate of 20%, and a dividend of 60,000 yuan must be paid up to 1$20,000 tax. Not only is this not cost-effective, but it will also affect the quality of life if you live on interest. If it is held for a long time, there is no need to pay individual income tax.
Secondly, the dividend growth rate can be higher than the inflation rate. Due to inflation, money will continue to depreciate. Because it seems that the income of 5,000 yuan a month can still be lived, but in another one or two decades, it may not be at all.
For example, 20 years ago, with an income of a few hundred yuan a month, life could be enjoyable, but now a few hundred yuan a month, it is good to be able to eat enough.
Therefore, if dividends do not rise all the time, relying on dividends to make a living, the quality of life will become lower and lower under inflation, and finally even unsustainable.
If the quality of life is to remain unchanged at the current level of 5,000 yuan per month, then the dividend growth rate should not be at least lower than the inflation rate.
However, it is impossible to determine whether or how much dividends will rise. So living on bank dividends, in fact, there is still a lot of uncertainty.
In addition, there is one of the most important premises, that is, you have to save up to 1 million first.