Dividends paid by listed companies reached 402 billion pesos in 2021

Iris Gonzales – The Filipina Star

February 7, 2022 | 00:00

MANILA, Philippines — Dividends paid by listed companies reached 402.18 billion pesos last year, up 17.3 percent from the 342.88 billion pesos declared in 2020, according to the latest data. of the Philippine Stock Exchange (PSE).

Going forward, PES Chairman Ramon Monzon said the PES would introduce a dividend yield index in the first half to highlight companies that offer high dividends.

“With approximately 40% of publicly traded companies paying dividends to their common stockholders, we felt it necessary to showcase companies that provide high dividend income to investors by offering a dividend yield index,” he said. he declares.

Monzon said the gradual reopening of the local economy has allowed businesses to generate better revenues, which has resulted in bigger dividends for shareholders.

“We expect earnings growth for publicly traded companies to continue to improve to provide stable dividend income for equity investors,” Monzon said.

The dividend payout for 2021 translates into dividend yields of 2.58% for 2021 and 2.5% in 2020.

That compares with a dividend yield of 1.16% in India, 1.29% in Japan and 3.37% in the UK, according to data from SIblis Research.

For PSEi companies, cash dividends paid by 28 of the top 30 index members last year amounted to 157.58 billion pesos, providing ordinary shareholders with a dividend yield of 1.72%.

In 2020, 29 PSEi constituents distributed 157.05 billion pesos in cash dividends, offering a dividend yield of 1.76%.

Of the six PES sectors, financials recorded the largest dividend with 187.55 billion pesos.

Among the listed companies that paid dividends were real estate investment trusts (REITs), namely AREIT Inc., DDMP REIT Inc., Filinvest REIT Corp., RL Commercial REIT Inc. and MREIT Inc.

These REITs have a total cash dividend payout of 5.77 billion pesos, which translates to a dividend yield of 2.16%, even though three of the five REITs have only been listed for an average of four month.

REITs are a new asset class that have allowed investors to participate in real estate assets simply by buying into companies.

“REITs have become a favorite asset class for investors due to their dividend mandate. With more REITs expected to list this year, including non-real estate REITs, investors will have more choice of companies that can provide passive income,” Monzon said.

According to the PSE, 108 listed companies out of 276 declared dividends last year compared to 105 out of 271 the previous year.

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