Globe cash dividend payments to reach P8.6B by 3Q 2012

TOTAL cash dividend payments of leading telecommunications company Globe Telecom will reach P8.6 billion by September this year, representing about 86 percent of its 2011 core net income.

Globe Telecom’s Board of Directors recently approved the declaration of the second semi-annual cash dividend of P32.50 per common share payable on September 18, 2012 to shareholders on record as of August 28, 2012.

Last March 16, Globe also issued a cash dividend of P32.50, bringing total cash dividend payments this year to P65 per common share.

This year’s payout is also higher by P400 million compared to P8.2 billion dividends in 2011 which was equivalent to 84 percent of prior year’s net income.

“We at Globe take pride in the company’s consistent performance over the years and in increasing shareholder value. It has always been our aim to provide superior returns to our shareholders and these cash dividends show our commitment to achieving this vision,” said Ernest L. Cu, president and CEO.

Earlier, data from Thomson Reuters StarMine showed that Globe was able to offer the highest dividend yield of 8.3 among 39 stocks in the Philippines.

Under the amended Globe dividend policy, shareholders will receive 75 percent to 90 percent of prior year’s core net income instead of reported net income.

Core net income excludes all foreign exchange and mark-to-market charges, as well as non-recurring items such as accelerated depreciation charges arising from its IT transformation and network modernization programs. The policy change ensures that dividends and yields remain competitive.

Over the years, Globe continues to provide one of the highest dividend yields in the local market and among telecom companies in the region, thereby, earning it the top spot in the Most Consistent Dividend Policy award of Alpha Southeast Asia and Commitment to a Strong Dividend Policy award of FinanceAsia last June 2012. (PR)