Globe Telecom board approves cash dividend for shareholders-A A +A
Tuesday, August 12, 2014
GLOBE Telecom said its board approved last Aug. 5 a cash dividend of P18.75 per common share for the third quarter. The dividend is payable to shareholders on record as of Aug. 19, with payment date set on Sept. 4.
The cash dividend represents an annualized dividend yield of 4.3 percent based on a share price of P1,735.
“Our dividend yield remains relatively competitive as the average dividend yield of firms included in the PSE index is only about two percent while government five and seven-year benchmark rates are at three percent and four percent, respectively. This also reflects the strength of the company’s ability to sustain cash flow generation as well as our commitment to sustainable and competitive dividend distribution policy,” said Globe chief finance officer Albert De Larrazabal.
He said that based on Globe closing price of P1,735 as of July 31, year-to-date share price appreciation is about 5.8 percent.
Coupled with the 4.3 percent dividend yield, the year-to-date total shareholder return is about 10 percent.
Globe reported a core net profit of P7.6 billion in the first half of the year, an 18 percent jump from P6.4 billion a year earlier, underpinned by strong performance of its mobile, broadband and fixed line data services. Service revenues in the first half of the year totaled P47.7 billion, up seven percent from P44.5 billion a year earlier.
Recently, Globe received a citation from Finance Asia, a leading financial publication in the region, for its commitment to a strong dividend policy. The citation was based on a poll conducted to determine Asia’s top companies. The survey involved votes from investors and analysts across the region.
The company was also cited as one of the top companies in Asia by institutional investment publication Alpha Southeast Asia. Globe Telecom was specifically cited for having the most consistent dividend policy. PR
Published in the Sun.Star Cebu newspaper on August 13, 2014.