BBRI's Jumbo Dividend Payout: Should Retail Investors Reinvest or Take Profits?
JAKARTA, KOMPAS.com - The distribution of a jumbo dividend by PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) amounting to Rp 346 per share for the 2025 fiscal year poses a dilemma for retail investors: re-entering to pursue compounding (dividend reinvestment) or realising profits at this point.
Compounding is the process where profits obtained, whether from dividends or capital gains, are not taken but reinvested to generate new profits in subsequent periods.
With a yield of around 10.4 per cent based on the closing price of 15 April, BBRI’s dividend is one of the most attractive in the market.
Azharys Hardian, Investment Specialist at PT Korea Investment and Sekuritas Indonesia (KISI), stated that investors have two main approaches.
On one hand, the dividend can be reinvested in the same stock to capitalise on the long-term compounding effect.
On the other hand, the funds can be redirected to pursue opportunities in other sectors experiencing strengthening alongside the IHSG rally.
“Retail investors have two options: realising profits to chase momentum in other sectors rebounding in line with the IHSG rally, or sticking to a compounding strategy,” said Azharys when contacted by Kompas.com on Wednesday evening (15/4/2026).
According to him, the choice is not about right or wrong, but about how investors manage opportunity costs amid constantly changing market conditions.
In a market situation undergoing sector rotation, profit opportunities come not only from dividends but also from capital gains. “This choice is not about right or wrong, but about how well one can optimise opportunity costs amid the current market dynamics,” he explained.
In terms of potential returns, reinvesting in the same stock offers repeated dividend stability, making it suitable for investors with an income investing strategy. However, for investors seeking more aggressive returns, redirecting funds to sectors undergoing rotation can provide higher short-term price appreciation opportunities.
He added that in the current market conditions, strategy flexibility is key.
Investors need to adjust dividend fund allocations according to their annual return targets and individual risk profiles. “Ultimately, the key is aligning the dividend cash flow with the annual return target one aims to achieve,” he concluded.
Furthermore, regarding the dividend trap phenomenon that often emerges after the cum date, Azharys views it as frequently misunderstood.
The share price decline after the ex-date is a normal mechanical adjustment in line with the dividend amount distributed, not a signal of fundamental weakening.