economy

Mirae Asset: Facing Trade Wars, High Dividend Stocks Are The Choice

Mirae Asset Sekuritas Indonesia advises investors to focus on high-dividend stocks amid the growing risks from the global trade war.

"There are 80 stocks that could be good options for investment gains during this uncertain stock market this year," said Handiman Soetoyo, Head of Proprietary Investment at Mirae Asset, during the Media Day on January 14, 2025.

At the event titled "Secure Greater Returns with Dividend Stocks in 2025," he mentioned that these 80 high-dividend stocks are spread across various sectors, excluding the property sector.

Among these, Mirae Asset's top five picks are PT BPD Jawa Timur Tbk (BJTM), PT Bank Rakyat Indonesia Tbk (BBRI), PT Bukit Asam Tbk (PTBA), PT Perusahaan Gas Negara Tbk (PGAS), and PT Trans Power Marine Tbk (TPMA).

These five stocks are expected to contribute significantly to the total predicted dividends of Rp 322.4 trillion (-11.4%) for listed companies this year.

The 2025 dividend forecast is lower than the previous year mainly due to unusual events last year, particularly the special dividend from PT Alamtri Resources Indonesia Tbk (ADRO) amounting to Rp 41.53 trillion.

He added that these high-dividend companies are likely to offer attractive dividends this year, especially based on their historical dividend payments from last year.

In 2025, Handiman noted that the total dividends distributed by companies listed on the Indonesia Stock Exchange in 2024 reached a record high of Rp 364.2 trillion (+1.9% YoY).

This Rp 364.2 trillion dividend for 2024 includes dividends for the 2023 fiscal year, along with interim dividends. He mentioned that the peak dividend season typically occurs from March to June and throughout the fourth quarter.

In 2024, the finance and energy sectors continue to be the top contributors to dividends, with major players like ADRO, BBRI, PT Bank Central Asia Tbk (BBCA), and PT Bank Mandiri Tbk (BMRI).

"This confirms that these sectors remain the most attractive for investors seeking dividends," he said.

Last year, the number of listed companies distributing dividends increased to 342 (up from 323 in 2023), thanks to more new issuers entering the stock market.

However, despite the increase in numbers, the ratio of dividend-paying companies to the total listed companies fell to 38.3% in 2024 (down from 39.4% in 2023) due to fewer new companies paying dividends.

In 2024, ADRO and BBRI were the largest dividend payers by value, with Rp 54.4 trillion and Rp 48.1 trillion, respectively. In terms of dividend yield, the top dividend payers were ADRO at 49.4%, PT Golden Energy Mines Tbk (GEMS) at 20.5%, and PT Baramulti Suksessarana Tbk (BSSR) at 19.8%.

With significant dividend payments from BBRI and other state-owned enterprises (SOEs), the total dividend contributions from these companies to the government exceeded the target, reaching Rp 86.4 trillion by November 2024.

Of this amount, SOEs listed on the stock exchange contributed 68.6% of the total dividends paid to the state treasury. The banking sector among SOEs remains dominant, contributing 57.4%.

"Considering the increasing target for SOE dividend revenue in 2025, set at Rp 90 trillion, we believe that listed SOEs will continue to provide substantial dividends this year," said Handiman.

At the same event, Rully Arya Wisnubroto, Head of Research & Chief Economist at Mirae Asset, expressed optimism that the Indonesian capital market will remain positive in 2025.

Tag: Mirae Asset Sekuritas Indonesia