VPD Announces Record 23% Cash Dividend for 2025, Payment in July 2026

Overview

VPD (CTCP Phát triển Điện lực Việt Nam) has announced a record cash dividend of 23% for the 2025 fiscal year, with payment scheduled for July 15, 2026. The dividend comes on the back of a 23% profit increase in 2025, but the company has set a cautious 2026 business plan forecasting a 41% decline in net profit.

Key Facts

• VPD will pay a cash dividend of 23% (VND 2,300 per share) for 2025, the highest since listing.
• Record date for the dividend is June 15, 2026; payment date is July 15, 2026.
• With 106.6 million shares outstanding, total dividend payout is approximately VND 245 billion.
• Largest shareholder EVNGENCO1 (36.65% stake) will receive about VND 90 billion; foreign shareholder Tepco Renewable Power Singapore (30% stake) will receive about VND 73 billion.
• In 2025, VPD reported revenue of VND 695 billion (+19% YoY) and net profit of VND 262 billion (+23% YoY), a three-year high.
• For 2026, VPD targets revenue of VND 530 billion (-24% YoY) and net profit of VND 155 billion (-41% YoY), with a planned dividend of 13%.
• In Q1 2026, VPD posted revenue of VND 107 billion (-27% YoY) but net profit of VND 30.5 billion (triple YoY), completing ~20% of full-year targets.

What Happened

VPD announced a record cash dividend of 23% for the 2025 fiscal year, with the record date set for June 15, 2026, and payment on July 15, 2026. This is the highest dividend since the company listed on HOSE. Over the past decade, VPD has consistently paid cash dividends, with 20% and 16% in the two prior years.

The strong dividend is supported by 2025 results: revenue of VND 695 billion (+19% YoY) and net profit of VND 262 billion (+23% YoY), the highest in three years. However, the company has set a cautious 2026 plan, targeting revenue of VND 530 billion (-24%) and net profit of VND 155 billion (-41%). The company expects to maintain a 13% cash dividend for 2026.

Market Context

VPD shares closed at VND 24,700 on May 26, 2026, up 0.82% with low volume of 6,200 shares. The stock trades on HOSE in the energy sector. The record dividend yield of approximately 9.3% (based on current price) is attractive, but the cautious 2026 guidance may temper investor enthusiasm. The Q1 2026 profit surge (triple YoY) provides some near-term support, but the full-year target implies a sharp slowdown.

Strategic Significance

VPD’s record dividend underscores its strong cash generation and commitment to shareholder returns, supported by stable operations as a power generation company linked to EVNGENCO1. However, the sharp 2026 profit guidance decline suggests management expects lower electricity output or pricing, possibly due to maintenance, lower demand, or regulatory changes. The dividend policy shift from 23% to 13% for 2026 aligns with the profit outlook. For long-term investors, the key question is whether the 2026 plan is overly conservative or reflects structural headwinds.

What to Watch

• Q2 2026 earnings release to assess if the profit decline materializes as guided.
• Any updates on power purchase agreements or output targets from EVNGENCO1.
• Changes in electricity pricing or regulatory policies affecting VPD’s revenue.
• Dividend payment execution and any special dividends for 2026.
• Foreign ownership trends given Tepco’s significant stake and potential interest.