Philippine companies with highest dividends

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Which companies in the Philippines have reported highest dividends in 2019? This is the question I’d like to answer in this article.

Related: Blue chip stocks with the highest dividends 2019

What is a dividend?

When you buy a stock from the Philippine Stock Exchange, dividend is one way that you gain from your investment and earn passive income.

We know that companies earn profit from the business. And they have a choice to put it back to the business for expansion, improving operations, hiring the best talent, etc.

They also have a choice to give part of their profit to their shareholders in the form of dividend. When they do so, it is usually announced via the Philippine Stock Exchange website under Dividends and Rights.

Among investment funds, the First Metro Philippine Equity Exchange Traded Fund (FMETF) also gives out dividends.

How are dividends paid?

There are two ways that you can get paid.

  • stock
  • cash

In stock dividends, you don’t receive cash. Instead you will be given more shares in proportion to your investment. The bigger capital you’ve put into the company, the more shares that you get as your dividend.

The downside is that the company would issue more shares, and the effect is that the value of each issued share is diluted or lessened.

So instead, most companies prefer to give out dividends in the form of cash. It is then credited to your account with your stock broker.

There are also three dates that you need to remember.

  • Ex-dividend date
  • Record date
  • Payment date

Ex-dividend date is the date set by the stock exchange when the list of stockholders eligible to receive the dividend is finalized. If you want to purchase the stock to get the dividend, then the sale must be done before the ex-dividend date.

Record date is the date set by the company when the names of stockholders who will receive the dividends must be on the books. The ex-dividend is usually a few days before the record date.

Payment date is the date when the dividend is issued.

Dividend yield

When comparing companies, it is best not to compare them with the amount of dividend that they issue. Why? Because the face value of the amount may not reflect your true return.

Instead, a better way is to compare the dividend yield. The dividend yield is the result of the stock price divided by the dividend amount.

To better understand this, think of Company X whose stock is priced at ₱10 and Company Y priced at ₱20. Suppose that Company X declares of P1.50 and Company Y declares ₱2.00 dividends respectively.

Which do you think gives you more money? You would think that it’s Company Y because it’s higher in value.

The math tells a different story.

PriceDividendYield
Company X10.001.5015%
Company Y20.002.0010%

From the table, you can see that you have a better deal with Company X. Your dividend represents 15% of the price you paid for one share. In Company Y, you only receive 10%.

You can also think of it differently. For every peso that you invested, you get 15 cents in dividend under Company X and only 10 cents under Company Y.

Philippine companies with highest dividends

The data below is grabbed from aggregate stock website and accuracy is not guaranteed. Some of the items below are preferred shares as reflected in their names. Please see company’s latest dividend issuance from the Philippine Stock Exchange.

The companies are arranged from highest to lowest dividend yield. The stock prices are updated as of stock’s last trading day up to 2019 and dividends declared in 2019.

TickerCompanyPriceDividendYield
ABAAbaCore Capital Holdings, Inc.0.780.2025.64%
SPCSPC Power Corporation8.191.1013.43%
PRF2BPetron Corp. – Perpetual Pref. Series 2B1,049.00102.879.81%
PRF2APetron Corp. – Perpetual Pref. Series 2A1,000.0094.509.45%
SHLPHPilipinas Shell Petroleum Corporation32.803.009.15%
LRPLeisure and Resorts World Corp.-Pref1.000.099.00%
MWCManila Water Company, Inc.10.360.918.78%
PLCPremium Leisure Corp.0.570.058.77%
GMA7GMA Network, Inc.5.330.458.44%
PHNPhinma Corporation10.060.807.95%
CEBCebu Air, Inc.89.507.007.82%
ANSA. Soriano Corporation6.420.507.79%
SMC2CSan Miguel Corporation Series 2-C Pref.77.506.007.74%
PNX3BPhoenix Petroleum – Non-Voting Pref. 3B106.708.117.60%
TELPLDT, Inc.988.0072.007.29%
PNX3APhoenix Petroleum – Non-Voting Pref. 3A102.307.437.26%
DMCDMCI Holdings, Inc.6.610.487.26%
PPCPryce Corporation5.060.367.11%
CHIBChina Banking Corporation25.051.767.03%
MWPMegawide Const. Corp. – Perpetual Pref.100.307.037.01%
SMC2FSan Miguel Corporation Series 2-F Pref.75.805.116.74%
PSBPhilippine Savings Bank57.503.756.52%
SMC2GSan Miguel Corporation Series 2-G Pref.76.004.936.49%
DDPRDoubleDragon Properties Corp. Pref.100.506.486.45%
SMC2ISan Miguel Corporation Series 2-I Pref.75.204.756.32%
SMC2HSan Miguel Corporation Series 2-H Pref.75.054.746.32%
SMC2ESan Miguel Corporation Series 2-E Pref.77.004.746.16%
BELBelle Corporation1.990.126.03%
SMC2DSan Miguel Corporation Series 2-D Pref.75.004.465.95%
CDCCityland Development Corporation0.850.055.88%
SCCSemirara Mining and Power Corporation22.001.255.68%
FBP2San Miguel Food and Beverage Perp Pref 2997.0056.575.67%
CEUCentro Escolar University7.090.405.64%
SHNGShang Properties, Inc.3.200.185.63%
LANDCity and Land Developers, Inc.0.770.045.19%
GTPPBGT Capital Non-Voting Perpetual Pref ”B”1,000.0050.955.10%
PRF3BPetron Corp. – Perpetual Pref. Series 3B1,055.0053.545.07%
MERManila Electric Company317.0016.065.07%
PSEThe Philippine Stock Exchange, Inc175.008.805.03%
FJPF and J Prince Holdings Corp. ”A”3.990.205.01%
SGISolid Group, Inc.1.220.064.92%
PIPPepsi-Cola Products Philippines, Inc.1.920.094.69%
GTPPAGT Capital Non-Voting Perpetual Pref ”A”990.0046.304.68%
COLCOL Financial Group, Inc.18.420.854.61%
GLOGlobe Telecom, Inc.2,020.0091.004.50%
EUROEuro-Med Laboratories Phil., Inc.1.600.074.38%
APAboitiz Power Corporation34.201.474.30%
CROWNCrown Asia Chemicals Corporation2.150.094.19%
CLICebu Landmasters, Inc.4.830.204.14%
NIKLNickel Asia Corporation3.390.144.13%
FLIFilinvest Land, Inc.1.500.064.00%
CICConcepcion Industrial Corporation30.001.204.00%
ROCKRockwell Land Corporation2.040.083.92%
ICTInt’l Container Terminal Services, Inc.128.605.003.89%
PMPCPanasonic Manufacturing Phils. Corp.5.430.213.87%
ABSABS-CBN Corporation15.800.553.48%
AUBAsia United Bank Corporation53.101.803.39%
VLLVista Land and Lifescapes, Inc.7.730.263.36%
STISTI Education Systems Holdings, Inc.0.600.023.33%
LBCLBC Express Holdings, Inc.13.500.453.33%
DMPA1Del Monte Pacific Ltd A-1 Pref. (USD)10.000.333.30%
UBPUnion Bank of the Philippines57.701.903.29%
MACAYMacay Holdings, Inc.6.190.203.23%
COSCOCosco Capital, Inc.6.840.223.22%
DMPA2Del Monte Pacific Ltd A-2 Pref. (USD)10.280.333.21%
MPIMetro Pacific Investments Corporation3.480.113.16%
BPIBank of the Philippine Islands87.902.703.07%
DNLD and L Industries, Inc.9.500.293.05%
ATIAsian Terminals, Inc.18.500.563.03%
RFMRFM Corporation5.300.163.02%
FPHFirst Phil. Holdings Corp.68.952.002.90%
MRSGIMetro Retail Stores Group, Inc.2.110.062.84%
FPHPCFirst Phil. Holdings Corp. Series C Pref490.0013.752.81%
REGRepublic Glass Holdings Corp.2.950.082.71%
LPZLopez Holdings Corporation3.710.102.70%
GSMIGinebra San Miguel Inc.38.001.002.63%
MBCManila Broadcasting Company11.500.302.61%
PCORPetron Corporation3.860.102.59%
AEVAboitiz Equity Ventures, Inc.51.501.322.56%
LTGLT Group, Inc.11.980.302.50%
ALCOArthaland Corporation0.810.022.47%
FGENFirst Gen Corporation24.150.552.28%
VVTVivant Corporation15.120.342.25%
CHICebu Holdings, Inc.6.800.152.21%
URCUniversal Robina Corporation145.003.152.17%
RCBRizal Commercial Banking Corp.23.000.492.13%
TECB2Cirtek Holdings – Pref B-2 (USD)0.960.022.08%
EEIEEI Corporation9.800.202.04%
FEUFar Eastern University, Inc.890.0018.002.02%
PGOLDPuregold Price Club, Inc.39.750.802.01%
MVCMabuhay Vinyl Corporation3.500.072.00%
KPHKeppel Philippines Holdings, Inc. ”A”5.180.101.93%
FBSan Miguel Food and Beverage, Inc.85.001.601.88%
CPGCentury Properties Group, Inc.0.550.011.82%
RLCRobinson Land Corporation27.550.501.81%
CAConcrete Aggregates Corp. ”A”65.001.151.77%
EAGLEEagle Cement Corporation14.860.261.75%
MEGMegaworld Corporation4.010.071.75%
PRF3APetron Corp. – Perpetual Pref. Series 3A1,031.0017.181.67%
ACRAlsons Consolidated Resources, Inc.1.210.021.65%
IPOiPeople, Inc.9.490.151.58%
SECBSecurity Bank Corporation195.003.001.54%
MBTMetropolitan Bank and Trust Company66.301.001.51%
PRCPhilippine Racing Club, Inc.8.850.131.47%
PRMXPrimex Corporation2.090.031.44%
SMCP1San Miguel Corporation Series 1 Pref.75.501.061.40%
HIHouse of Investments, Inc.5.200.071.35%
BLOOMBloomberry Resorts Corporation11.300.151.33%
ACPB1Ayala Corp. Class ”B” Series 1 Pref.499.006.561.31%
PNXPhoenix Petroleum Philippines, Inc.11.940.151.26%
MACMacroasia Corporation16.500.201.21%
MAXSMax’s Group, Inc.12.400.151.21%
JFCJollibee Foods Corporation216.002.581.19%
CNPFCentury Pacific Food, Inc.15.180.181.19%
ALIAyala Land, Inc.45.500.521.14%
STRVistamalls, Inc.5.660.061.06%
ACAyala Corporation785.508.301.06%
RRHIRobinsons Retail Holdings, Inc.80.000.720.90%
ALHIAnchor Land Holdings, Inc.8.950.080.89%
WLCONWilcon Depot, Inc.18.000.160.89%
SMSM Investments Corporation1,043.009.120.87%
SMCSan Miguel Corporation164.001.400.85%
SMPHSM Prime Holdings, Inc.42.100.350.83%
FDCFilinvest Development Corporation13.000.100.77%
BDOBDO Unibank, Inc.158.001.200.76%
LFMLiberty Flour Mills, Inc.41.650.300.72%
SSISSI Group, Inc.2.780.020.72%
JGSJG Summit Holdings, Inc.80.800.370.46%
MFINMakati Finance Corporation2.480.010.40%
GTCAPGT Capital Holdings, Inc.847.003.000.35%
SEVNPhilippine Seven Corporation142.000.500.35%
SBSSBS Philippines Corporation9.260.020.22%
MFCManulife Financial Corporation849.001.000.12%
SLFSun Life Financial, Inc.1,825.002.100.12%

Should you buy company stocks with dividends?

Again as with all things related to investment, buying dividend-paying stocks is a personal choice.

Advantages of dividend

Of course, when you receive a dividend the benefit is immediately clear.

You get something in return for your capital. Your investment increases not only through the appreciation of the stock price, but also with the dividend that you receive.

Purchasing stocks with high dividends can also be a way to diversify your portfolio.

Most of the companies that give out dividends are usually utility companies like power, water, or telecommunication. They may be stable and mature companies with arguably less room to expand and in regulated industries, but they do have lots of recurring income that they can afford to give away.

Disadvantages of dividend

Here are some of its disadvantages.

  • tax
  • non-guaranteed
  • non-compounding
  • less business capital
  • hype
  • liquidity

Tax. Upon receiving dividends, you would be taxed at 10%.

Non-guaranteed. They also vary depending on the income of the company. The schedule of distribution—that is, the date when it is going to be issued—is also not guaranteed. So they may not be as reliable as interest earned in savings account, time deposit, bonds or long term negotiable certficate of deposit (LTNCD).

Non-compounding. Cash dividend is money that is deposited to your account, and it’s not going to earn any interest or help in getting compounding return from your investment.

So it’s up to you to invest it back, which when you do would then incur charges that further diminishes your capital.

Less business capital. Dividends take away money that could’ve been used for the business.

Some investors would prefer to not receive dividend at all. They might want the company to use all the profits earned in a way that would improve the business like investing in research and development, purchasing state-of-the-art technology, expanding in new markets, etc.

All of these would translate to more value for shareholders, which in the long run is reflected on the price of the stock.

Hype. Another factor to look into is that a struggling company might announce a huge dividend pay-out to attract investors and inflate its stock price. After the hype, you may be left with a company stock that has little fundamental worth.

Liquidity. Some stocks might have liquidity issue. It might be difficult to buy or sell them should you choose to.

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