PSE to launch dividend yield index

The Philippine Stock Exchange is launching the dividend yield index within the first half as part of efforts to attract income seeking equity investors.

The new index will track the performance of high dividend paying listed corporations.

Companies distribute a portion of their profits as dividends, while retaining the remaining portion to reinvest in the business.

Data culled by the PSE showed that the amount of cash dividends paid out by public listed companies to common shareholders reached P402.18 billion last year, up 17.3 percent from the previous year. This translated to dividend yields of 2.58 percent.

Dividend yield is the ratio of dividend per share to price per share.
The cash dividends paid by 28 of the 30 main index members amounted to P57.58 billion, giving common shareholders a 1.72 percent dividend yield. According to the PSE, 108 of 276 PLCs gave out cash dividends last year compared with 105 of the 271 in 2020.

Among the six sectors in the PSE, financials had the largest dividend payout at P187.55 billion.

“With around 40 percent of PLCs giving out dividends to their common shareholders, we deemed it necessary to showcase companies that provide high dividend income to investors by coming up with a Dividend Yield Index,” said PSE president and CEO Ramon S. Monzon.

“The gradual reopening of the local economy allowed companies to generate better income, which resulted in bigger dividends for shareholders. We hope that earnings growth among PLCs continues to improve to ensure steady dividend income for stock market investors,” Monzon added.

Real Estate Investment Trusts AREIT, Inc., DDMP REIT, Filinvest REIT Corp., RL Commercial REIT and MREIT recorded an aggregate cash dividend payout of P5.77 billion, resulting in 2.16 percent dividend yield, even as three of the five REITs were only listed for an average of four months.

“REITs have become a preferred asset class among investors because of its dividend mandate. With more REITs expected to list this year, including non-property REITs, investors will have a wider selection of companies that can provide passive income,” Monzon said.

SOURCE: Bilyonaryo

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Stocks Performance under each Philippine President (PSEi Doubled in Size During Pres Aquino's Term)

1. During the time of Pres. Cory Aquino, the first 1,000 breakout level of the PSEi was recorded on July 2, 1987, a little over a year after she assumed the presidency.

2. During the administration of Pres. Fidel Ramos, Philippine stocks achieved two new breakout levels just three months apart. The PSEi’s 2,000-point level was reached on September 13, 1993 while the 3,000-point level was reached on December 23, 1993.

3. During the administrations of Pres. Joseph “Erap” Estrada and Pres. Gloria Macapagal Arroyo (GMA), the PSE never reached any new 1,000-point milestone.

The sluggish performance of the Philippine stock market was partly due to market meltdowns resulting from the aftermath of the Asian financial crisis in 1997 (during Pres. Estrada’s term) and the subprime mortgage and global economic crisis in 2007 (during Pres. GMA’s term). Both major events imposed a heavy toll on Philippine stocks lasting almost two decades.

4. It took the PSEi a long 17 years, from 1993 to 2010, to increase by just 1,000 points from 3,000 to 4,000 level.

5. While it took the PSEi 17 years to go from 3,000 to 4,000, it only took less than two years to jump from 4,000 to 5,000 points. This happened during the administration of Pres. Noynoy Aquino when the local index grew from 4,000 in September 2010 to 5,000 in March 2012.

6. Philippine stocks managed to breach the 1,000-point hurdle five (5) times from the 4,000 level in 2010 to 8,000 level in 2015. During this time, under the term of Pres. Noynoy Aquino, the PSEi doubled its value from 4,000 to 8,000 points.

7. It took the local stock market index three years (from March 2015 to January 2018) to reach a new milestone from 8,000 to 9,000 points. The 9,000-point level was reached on January 26, 2018, almost two years into the administration of Pres. Rodrigo Duterte.

8. In 2020, Philippine stocks plummeted alongside global markets because of the COVID-19 pandemic. The PSE suffered its biggest one-day decline of -13.34% on March 19, 2020 following the national government’s announcement of lockdowns and mobility restrictions.

SOURCE: Pinoy Money Talk

 

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