TDW Plans 29% Cash Dividend for 2025, Sets Dividend Roadmap Through 2029

Overview

Thủ Đức Water Supply JSC (HOSE: TDW) has announced a proposed cash dividend of 29% for 2025 profits, significantly above its initial plan of 12%, and laid out a detailed dividend roadmap through 2029. The company also set modest 2026 business targets and plans to elect two independent board members at its upcoming AGM on April 22, 2026.

Key Facts

• TDW proposes a 29% cash dividend for 2025 profits, equivalent to 2,900 VND per share, paid in two installments (1,600 VND and 1,000 VND) plus an additional 300 VND from retained earnings.
• The 2025 dividend rate is increased from the initial plan of 12%.
• Dividend roadmap: 14% for 2026, 10% for 2027, 18% for 2028, and 25.2% for 2029, partly funded by over 45.3 billion VND in retained earnings from prior years.
• Historical dividends: 2,420 VND/share (2022), 3,390 VND/share (2023), 3,380 VND/share (2024).
• 2026 targets: revenue of 1,391 billion VND (+2.6% YoY), net profit of 61.3 billion VND (+1.5% YoY).
• Water sales volume target: 113.9 million cubic meters, with a water loss rate target of 10%.
• Two major shareholders hold 95.17% of capital: Saigon Water Supply Corporation (51%) and REE Water Co., Ltd. (44.17%).

What Happened

According to documents for the 2026 Annual General Meeting (AGM) scheduled for April 22, 2026, TDW’s board proposes a cash dividend of 26% from 2025 profits, plus an additional 3% from retained earnings, totaling 29% or 2,900 VND per share. This is a significant increase from the originally planned 12%.

The company also outlined a dividend roadmap for 2026-2029, with rates of 14%, 10%, 18%, and 25.2% respectively. The dividends for 2027-2029 will be funded from retained earnings accumulated before 2024, amounting to over 45.3 billion VND.

For 2026, TDW targets revenue of 1,391 billion VND (+2.6%) and net profit of 61.3 billion VND (+1.5%). The company plans to supply 113.9 million cubic meters of water and maintain a water loss rate of 10%.

Additionally, the AGM will elect two independent board members for the 2022-2027 term to comply with legal requirements on board composition.

Market Context

TDW shares trade on HOSE with a highly concentrated shareholder base. The stock has historically offered high cash dividends, with yields often exceeding 20%. The 2025 dividend proposal of 29% reinforces this trend. The company’s modest 2026 growth targets reflect the mature nature of the water utility sector, where revenue and profit growth are typically stable but low.

Strategic Significance

TDW’s aggressive dividend policy, supported by strong retained earnings and a dominant state shareholder, provides a clear income stream for investors. The dividend roadmap through 2029 offers visibility, though the reliance on retained earnings for future payouts may limit reinvestment. The addition of independent board members could improve governance, but the concentrated ownership structure means minority shareholders have limited influence.

What to Watch

• Approval of the dividend plan and roadmap at the AGM on April 22, 2026.
• Execution of 2026 business targets, particularly revenue and profit growth.
• Water loss rate performance and its impact on margins.
• Any changes in shareholder structure or dividend policy beyond 2029.
• Regulatory developments affecting water tariffs or privatization.