Globe Telecom said its board approved last November 11, 2014 a cash dividend of P18.75 per share for holders of the company’s common shares in line with its commitment to continue delivering value to its shareholders.
The dividend is payable to shareholders on record as of November 25, while payment date has been set on December 11. The cash dividend represents an annualized dividend yield of approximately 4.4% based on the company’s closing share price of P1,685 as of October 31, 2014.
According to Globe Chief Finance Officer Albert de Larrazabal, the company’s yield of 4.4% continues to be competitive as the average dividend yield of firms included in the PSE index is only about 2%. On the other hand, government five and seven-year benchmark rates are both approximately at 4%, respectively. Based on a Globe share price of P1,685 as of October 31, 2014, year-to-date share price appreciation is about 2.7%. Coupled with the 4.4% dividend yield, the total shareholder return is 7.1%.
Globe led industry growth in the first nine months of the year, posting record-breaking revenues of P72.7 billion, 8% higher than the P67.3 billion reported in the same period last year, driven by robust expansion of both mobile and broadband customer bases, the strong demand for data connectivity, and the successful execution of various innovative and relevant promotions during the period.
Core net income jumped 22% in the January to September period to P11.6 billion while net profit surged 198% to P10.5 billion as a result of improvement in EBITDA, coupled with lower depreciation expenses and non-operating charges.
Early this year, 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. Globe was also cited as one of the top companies in Asia by institutional investment publication Alpha Southeast Asia for having the most consistent dividend policy.