--- title: "Dividends and Dividend Yield: Ex-Date Price Adjustment on HOSE" description: A practical guide to cash and stock dividends, VSDC T+2 settlement rules, ex-dividend price adjustment on HOSE, dividend payout ratio, and 2026 tax rules. url: https://ginity.vn/en/blog/dividends-and-dividend-yield canonical: https://ginity.vn/en/blog/dividends-and-dividend-yield markdown: https://ginity.vn/en/blog/dividends-and-dividend-yield.md language: en datePublished: 2026-10-27T00:00:00+07:00 dateModified: 2026-10-27T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: learn name: Learn investing url: https://ginity.vn/en/learn tickers: - VNM - VDS sources: - name: Vietnam Securities Depository and Clearing Corporation url: https://vsdc.vn/vi/sd/tAPN4Gez5anGD8ztNn7I_w title: Corporate Action Processing Regulations (Decision No. 38/QD-HDTV) - name: Vietnam Securities Depository and Clearing Corporation url: https://vsdc.vn/vi/ad/197038 title: "VNM: Payment of the Remaining 2025 Cash Dividend" - name: Vietnam Securities Depository and Clearing Corporation url: https://vsdc.vn/vi/ad/187729 title: "VNM: Payment of the Remaining 2024 Dividend and First 2025 Interim Cash Dividend" - name: Vietnam Securities Depository and Clearing Corporation url: https://vsdc.vn/vi/ad/201621 title: "VDS: 2025 Stock Dividend Distribution" - name: Government of Vietnam url: https://vanban.chinhphu.vn/?docid=218684&pageid=27160 title: Decree No. 253/2026/ND-CP Guiding the Law on Personal Income Tax - name: Government of Vietnam url: https://vanban.chinhphu.vn/?docid=200447&pageid=27160 title: Law on Enterprises No. 59/2020/QH14 - name: Government of Vietnam url: https://vanban.chinhphu.vn/?docid=202222&pageid=27160 title: Decree No. 155/2020/ND-CP Guiding the Law on Securities - name: Vietnam Dairy Products Joint Stock Company url: https://www.vinamilk.com.vn/investor/reports/shareholder title: Vinamilk Shareholder Announcements and Disclosures 2026 publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # Dividends and Dividend Yield: Ex-Date Price Adjustment on HOSE > A practical guide to cash and stock dividends, VSDC T+2 settlement rules, ex-dividend price adjustment on HOSE, dividend payout ratio, and 2026 tax rules. Gini · Learn investing · 2026-10-27 · https://ginity.vn/en/blog/dividends-and-dividend-yield _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - Cash dividends are calculated as a percentage of the VND 10,000 par value per share, such as Vinamilk's 18.5% rate in 2026 yielding VND 1,850 per share. - Under VSDC T+2 settlement rules, the ex-dividend date occurs exactly 1 business day prior to the official record date. - Reference prices on HOSE are adjusted downward on the ex-dividend date, directly deducting cash dividends such as VND 1,850 per share from the prior closing price. - Personal income tax on cash dividends is withheld at a 5% rate under Decree 253/2026/ND-CP, whereas stock dividends incur tax upon subsequent transfer. ## Economic Substance of Cash and Stock Dividends A dividend represents corporate after-tax earnings distributed to equity holders after statutory liabilities and reserves. In corporate finance, distribution choices balance capital returns to shareholders against retaining earnings for operational growth. On Vietnamese exchanges, listed firms distribute earnings primarily through cash dividends and stock dividends. According to the [Law on Enterprises No. 59/2020/QH14](https://vanban.chinhphu.vn/?docid=200447&pageid=27160), a cash dividend involves transferring liquid capital directly into the brokerage accounts of registered shareholders. In Vietnam in 2026, cash dividend rates are calculated on the statutory par value of VND 10,000 per share rather than the prevailing exchange market price. For example, in 2026 a declared dividend of 10% corresponds to VND 1,000 per share, while an 18.5% rate equals VND 1,850 per share. Accounting rules require that paying cash dividends directly reduces cash balances on the balance sheet while decreasing retained earnings within equity. In contrast, a stock dividend distributes additional common shares to existing shareholders proportionately. This transaction represents an internal equity reclassification: retained earnings are reclassified into paid-in charter capital. A stock dividend generates zero cash exit from the firm, preserving total assets and total equity. However, outstanding share count expands, diluting book value per share while keeping each investor's percentage ownership unchanged. Regarding statutory issuance criteria, according to [Decree No. 155/2020/ND-CP of the Government](https://vanban.chinhphu.vn/?docid=202222&pageid=27160) issued on 31/12/2020 guiding the Law on Securities, an enterprise issuing stock dividends must possess sufficient funding from retained after-tax earnings verified in its latest audited financial statements. | Comparison Metric | Cash Dividend | Stock Dividend | |---|---|---| | Corporate Cash Flow | Direct reduction in cash reserves paid out to shareholders | Zero cash exit; liquidity is preserved for business expansion | | Total Shareholders' Equity | Decreases by the aggregate amount of cash distributed | Remains unchanged (charter capital rises, retained earnings drop) | | Outstanding Shares Count | Remains constant | Expands proportionally based on the distribution ratio | | Relative Ownership Stake | Unchanged for each equity holder | Unchanged for each equity holder | | Ex-Date Reference Price | Decreased by the exact cash dividend amount per share | Adjusted downward proportionally by the share dilution ratio | | Personal Income Tax Timing | 5% tax withheld at source upon cash distribution | Deferred upon receipt; 5% tax applied on par value upon stock sale | *Source: Compiled from VSDC regulations and Decree 253/2026/ND-CP* ## T+2 Settlement Cycle, Record Date, and Ex-Dividend Date According to the [Corporate Action Processing Regulations at VSDC](https://vsdc.vn/vi/sd/tAPN4Gez5anGD8ztNn7I_w) enacted under Decision No. 38/QD-HDTV on 29/04/2025 by VSDC, the record date serves as the legal cutoff point for compiling the official list of securities holders entitled to receive dividends. At the close of business on the record date, VSDC finalizes the shareholder register across depository accounts. The Vietnamese equity market operates on a standard T+2 settlement schedule. Under this rule, a trade executed on day T completes clearing and ownership transfer on day T+2. Consequently, the ex-dividend date occurs exactly 1 business day prior to the record date. If an investor purchases shares on the ex-dividend date (day T), settlement completes on day T+2 after the record date has closed. Therefore, buyers on the ex-dividend date do not appear on the depository list and will not receive that distribution. Conversely, an investor holding shares prior to the ex-dividend date who executes a sell order on the ex-dividend date remains entitled to the dividend, as settlement concludes on day T+2. According to a VSDC corporate disclosure dated 17/06/2026, [Vinamilk announced the payment of its remaining 2025 cash dividend](https://vsdc.vn/vi/ad/197038) at an 18.5% rate (representing VND 1,850 per share against the standard VND 10,000 par value), establishing a record date of 29/06/2026 and a payment date of 17/07/2026. In the 2026 Vinamilk case, the record date was Monday, 29/06/2026. Because weekends are non-trading days, the preceding business day was Friday, 26/06/2026, serving as the ex-dividend date. Investors buying VNM shares on 26/06/2026 were not entitled to the payout. Securing the VND 1,850 dividend required purchasing shares no later than Thursday, 25/06/2026. ## HOSE Reference Price Adjustment Mechanics and Formulas The downward adjustment on an ex-dividend date is an administrative correction maintaining equitable pricing between buyers and sellers. When an equity trades ex-dividend, rights to corporate distributions detach from the share. In cash dividends, the firm disburses funds, lowering net assets. In stock dividends, an expanded share count divides corporate net worth across more units. Without price adjustments, ex-date buyers would pay full value for an asset stripped of entitlements. In Ginity's standardized analytical framework, the general formula for technical reference price adjustments on HOSE on the ex-date for dividends and rights issues is formulated as follows: ```text According to the technical reference price adjustment formula on HOSE: P_adj = (P_prior + I * P_issue - C) / (1 + I + R) Formula parameters: - P_adj: Adjusted reference price on the ex-dividend date. - P_prior: Closing price on the trading day immediately preceding the ex-date. - C: Cash dividend amount per share (in VND). - R: Stock dividend ratio (decimal). - I: Rights offering ratio at subscription price P_issue. ``` In situations where a corporation distributes purely cash dividends (setting R = 0 and I = 0), the calculation simplifies to: ```text According to the formula for cash dividends: P_adj = P_prior - C ``` According to Ginity's illustrative calculation for Vinamilk's June 2026 dividend distribution: Assuming on the June 25, 2026 trading session immediately preceding the ex-dividend date, VNM concluded trading at an illustrative closing price of 58,300 VND per share. The cash dividend amounted to 1,850 VND per share. For the June 26, 2026 ex-dividend session, the theoretical calculation yields 56,450 VND per share (58,300 minus 1,850). Under HOSE trading rules for shares priced at 50,000 VND or higher, the minimum tick size is 100 VND; therefore, 56,450 VND was rounded up to the 100 VND tick to establish the official reference price of 56,500 VND per share on the June 26, 2026 ex-dividend date. According to Ginity's portfolio model for an investor holding 1,000 VNM shares before the ex-dividend date: Total initial portfolio value on June 25, 2026 was 58,300,000 VND (1,000 shares at the 58,300 VND closing price). On the ex-dividend date June 26, 2026, the portfolio held 1,000 shares at the adjusted reference price of 56,500 VND (worth 56,500,000 VND) plus an entitlement to 1,850,000 VND in cash payable on July 17, 2026. Due to the 50 VND upward tick-size rounding adjustment, total portfolio value at the reference price stood at 58,350,000 VND prior to trading fluctuations on June 26, 2026. When a corporation distributes a stock dividend without cash (setting C = 0 and I = 0), the pricing formula simplifies to: ```text According to the formula for stock dividends: P_adj = P_prior / (1 + R) ``` According to a VSDC announcement published on October 21, 2026, [Viet Dragon Securities Corporation processed corporate actions](https://vsdc.vn/vi/ad/201621) distributing its 2025 stock dividend at a 10:1 ratio on a 10,000 VND par value basis, with a record date of November 2, 2026. According to Ginity's hypothetical illustrative scenario: With a 10:1 distribution ratio, parameter R equals 0.1 (10%). The record date was Monday, November 2, 2026, making Friday, October 30, 2026 the ex-dividend date. Assuming a hypothetical closing price of 22,000 VND per share on October 29, 2026 before the ex-date, the theoretical reference price on October 30, 2026 would adjust to 20,000 VND per share (22,000 divided by 1.1). According to Ginity's hypothetical portfolio model: An investor holding 1,000 VDS shares before the ex-date has total initial capital of 22,000,000 VND on October 29, 2026 (1,000 shares at the hypothetical 22,000 VND price). The investor receives 100 additional dividend shares upon distribution, expanding holdings to 1,100 shares. At the adjusted reference price of 20,000 VND on October 30, 2026, total value equals 22,000,000 VND (1,100 times 20,000 VND), preserving initial capital. ## Dividend Yield, Payout Ratio, and Personal Income Tax Obligations In fundamental analysis, dividend data supply two key capital allocation indicators: dividend yield and payout ratio. Dividend yield measures cash returns relative to market price: ```text According to the dividend yield formula: Dividend Yield = (DPS / P) * 100% ``` According to annual dividend yield calculation principles: DPS represents total cash dividends distributed per share across the full fiscal year, and P represents market price at the calculation point. Under disclosure from [VSDC on October 2, 2025](https://vsdc.vn/vi/ad/187729), Vinamilk distributed its first 2025 interim cash dividend of 2,500 VND per share (paid on October 24, 2025). Combined with the remaining fiscal year 2025 cash dividend of 1,850 VND per share (paid on July 17, 2026), total cash dividends for fiscal year 2025 reached 4,350 VND per share (a 43.5% payout on par value). Based on the illustrative June 25, 2026 price of 58,300 VND per share, VNM's annual dividend yield for fiscal year 2025 stood at 7.46% (4,350 divided by 58,300). Taking only the remaining 1,850 VND installment distributed in 2026 against the illustrative 58,300 VND price yields 3.17%, reflecting the standalone yield of that specific payment. Dividend yield allows investors to evaluate recurring cash streams against fixed-income alternatives, particularly bank deposit interest rates. The dividend payout ratio evaluates the portion of annual net earnings distributed to shareholders: ```text According to the dividend payout ratio formula: Dividend Payout Ratio = (Total Cash Dividends Paid / Net Profit After Tax) * 100% = (DPS / EPS) * 100% ``` According to capital allocation theory in corporate finance: Profit retained supports operational commitments, represented by retention ratio b, where b = 1 - Dividend Payout Ratio. Firms maintaining high cash payout ratios typically operate in mature sectors with stable market shares and modest capital expenditure needs. Conversely, growth firms maintain lower payout ratios or prioritize stock dividends to preserve liquid capital for expansion. Regarding personal taxation, according to [Decree No. 253/2026/ND-CP of the Government](https://vanban.chinhphu.vn/?docid=218684&pageid=27160) issued on June 30, 2026 with effect from July 1, 2026 detailing the Law on Personal Income Tax, capital investment income earned by individual investors is subject to a 5% personal income tax rate. Withholding and tax declaration responsibilities are structured as follows: According to regulations for cash dividends, the income-paying organization (the enterprise distributing dividends) is responsible for withholding 5% personal income tax before paying out income to individual shareholders. For example, on a 1,850 VND cash dividend from Vinamilk in 2026, withheld tax equals 92.5 VND (5% of 1,850 VND). The investor receives net cash of 1,757.5 VND per share into their account. According to regulations for stock dividends, individual investors are not required to pay personal income tax immediately upon crediting. When the investor subsequently sells or transfers those shares, the depository institution is responsible for declaring and paying 5% personal income tax on capital investment on behalf of the individual (calculated on the standard 10,000 VND par value per share, or on the actual transfer price if lower than par value), plus applicable securities transfer tax as prescribed by tax regulations. ## Four Common Misconceptions About Dividends and Corporate Actions Market participants frequently encounter four misconceptions regarding equity dividends: First, according to exchange price mechanics, some investors assume receiving dividends creates free incremental capital. As proven in reference price calculations, a stock's price is adjusted downward on the ex-date by the detached dividend. If market quotes remain flat, investor wealth remains unchanged, minus 5% tax withholding. Second, many assume holding shares until the record date or payment date is required to secure entitlements. In reality, holding shares through the close of the trading day immediately preceding the ex-dividend date secures legal entitlement. Selling on or after the ex-dividend date preserves dividend rights, as settlement concludes on day T+2. Third, some believe receiving stock dividends automatically multiplies personal wealth. Stock dividends divide existing equity into more pieces: share count expands while per-share market value is adjusted down proportionately, leaving total equity unchanged. Fourth, according to equity market convention, many investors confuse nominal dividend rates with cash dividend yield on market price. When a corporation announces a 20% cash dividend in 2026, this rate is calculated on the 10,000 VND par value, equaling 2,000 VND per share. If an investor purchases that stock at a market price of 100,000 VND per share in 2026, the actual cash dividend yield received is 2% (2,000 divided by 100,000), substantially below the 20% headline rate. Second, assuming shares must be held until the record date or payment date to secure entitlements. Ownership is locked if shares are held through the close of the business day before the ex-dividend date. Selling on the ex-dividend date does not forfeit the dividend. Third, assuming stock dividends multiply portfolio wealth. A stock dividend expands share count while diluting book value per share. Investors hold more shares, but each share represents a smaller slice of unchanged equity, keeping total market valuation flat. Fourth, according to official listing standards, some confuse a company's declared dividend percentage with the effective return on market price. When an issuing company announces a 20% dividend in 2026, this figure applies strictly to the VND 10,000 par value, producing VND 2,000 per share. If an investor purchased that stock at a market price of VND 100,000 in 2026, the effective dividend yield is 2% (VND 2,000 divided by VND 100,000), rather than the headline 20% figure stated in the corporate resolution. ## Official Channels for Tracking Dividend Disclosures To monitor dividend calendars accurately, market participants consult official regulatory and corporate channels: First, the VSDC portal at `vsdc.vn` under Corporate Actions, publishing verified notifications on record dates and payment timetables across listed entities. Second, the public company information disclosure system (IDS) managed by the State Securities Commission, alongside HOSE and HNX disclosure feeds hosting shareholder remuneration resolutions. Third, dedicated investor relations portals of listed firms. Market participants can track shareholder meeting resolutions and dividend notices directly through the [Vinamilk Shareholder Information Portal](https://www.vinamilk.com.vn/investor/reports/shareholder) maintained throughout 2026. Fourth, licensed trading portals from brokerages, where corporate action tools display pending record dates, estimated cash dividends, and unsettled stock distributions. ## Sources - Vietnam Securities Depository and Clearing Corporation: [VNM: Payment of the Remaining 2024 Dividend and First 2025 Interim Cash Dividend](https://vsdc.vn/vi/ad/187729) (02/10/2025) - Vietnam Securities Depository and Clearing Corporation: [Corporate Action Processing Regulations](https://vsdc.vn/vi/sd/tAPN4Gez5anGD8ztNn7I_w) (29/04/2025) - Vietnam Securities Depository and Clearing Corporation: [VNM: Payment of the Remaining 2025 Cash Dividend](https://vsdc.vn/vi/ad/197038) (17/06/2026) - Vietnam Securities Depository and Clearing Corporation: [VDS: 2025 Stock Dividend Distribution](https://vsdc.vn/vi/ad/201621) (21/10/2026) - Government of Vietnam: [Decree No. 253/2026/ND-CP Guiding the Law on Personal Income Tax](https://vanban.chinhphu.vn/?docid=218684&pageid=27160) (30/06/2026) - Government of Vietnam: [Law on Enterprises No. 59/2020/QH14](https://vanban.chinhphu.vn/?docid=200447&pageid=27160) (17/06/2020) - Government of Vietnam: [Decree No. 155/2020/ND-CP Guiding the Law on Securities](https://vanban.chinhphu.vn/?docid=202222&pageid=27160) (31/12/2020) - Vietnam Dairy Products Joint Stock Company: [Vinamilk Shareholder Announcements and Disclosures 2026](https://www.vinamilk.com.vn/investor/reports/shareholder) (17/06/2026) --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._