Globe Telecom’s board has approved a cash dividend of P37.50 per common share, following a double-digit rise in the company’s core net profit for 2013.
In a statement, Ernest Cu, Globe president and chief executive officer, said that, “On an annualized basis, the dividend represents a 12-percent improvement from last year’s distribution.”
He noted that, “It is equivalent to 86 percent of 2013 core net income, consistent with our dividend policy of issuing between 75 percent [and]90 percent of prior year’s core net income.”
The company said that dividend is payable to shareholders on record as of February 26, while payment date has been set on March 20.
Based on current share price, the company’s dividend yield of 4.6 percent remains competitive against yields of government securities and Philippine-listed companies. This reflects both the strength of Globe’s cash flows and its commitment to a sustainable and competitive dividend distribution.
Globe reported a core net profit of P11.6 billion for 2013, the highest core net over the last four years as the company’s revenues reached a fresh record of P90.5 billion, underpinned by strong performance of its mobile, broadband and fixed line data services.
Last year, Globe was recognized by the regional publication Alpha Southeast Asia Magazine as one of the Philippine companies with the most consistent dividend policy on their 3rd annual Southeast Asia Institutional Investor Corporate Awards.
The company was also cited by FinanceAsia Magazine’s annual poll of Best Managed Companies for its commitment to a strong dividend policy.
“Starting in the second half of the year, Globe will distribute quarterly dividend payments to enable better cash management and liquidity planning and provide a more consistent dividend distribution to our shareholders,” Cu said.