High Dividend-Paying Stocks in the Philippines (2012)

Here is an update to our article on the top stocks in the Philippines with the highest dividend payout in 2011. Last year, we wrote about companies traded on the Philippine Stock Exchange (PSE) that do not only provide income through price appreciation but also through dividend income.

As we have mentioned before, investors must also consider the dividends paid by companies when computing one’s potential income. Most newbie investors seem to be too concerned on capital appreciation that the dividend component of a stock is forgotten.

Dividend income as additional income stream

Like what we explained in the article How are profits made in the stock market?, dividend income is one of several ways that an investor can make money from a stock. Sometimes, dividends even compensate for losses due to a stock’s price declines.

I remember buying PLDT (Stock Code: TEL) shares several years ago during its peak price of P2,800. Two or three years later, the global recession came and my TEL stock tumbled and traded for a measly P2,300. That’s an 18% paper loss on my part.

It was surely heartbreaking but the good thing was, PLDT is one of the companies in the local market that pays dividends generously. In the past, TEL’s dividend payout rate has ranged from 8-10%, which compensated for the paper loss I was incurring.

Dividends as compensation for price decline losses

Annual dividends are fixed income that an investor can already lock in. Factoring that into the computation of one’s total income from stocks, they could very well compensate for any losses brought about by price declines.

I have been holding on to my TEL stock for almost a decade now and, due to its high dividend policy, even if its stock price would tumble back to P2,300, I am already in profit because of the dividends which I have already earned and locked in through the years.

Having said that, I would just like to remind our readers to look into a company’s dividend payout policy when investing because dividends — regardless of the form (may be cash or stock) — provide real, tangible income to investors on top of the income from  capital appreciation.

Here now is our updated list of PSE stocks with the highest payout ratio in 2012.

Top Dividend-Paying PSE Stocks  – 2012

Rank	Company	Code	2012 Cash Dividends per Share	Dividend Yield
1	MANILA BULLETIN PUBLISHING CORPORATION	MB	P0.05 per share	7.4%
2	I-REMIT INC.	I	P0.1995 per share	7.2%
3	CENTRO ESCOLAR UNIVERSITY	CEU	P1.00 per share	6.8%
4	ASIAN TERMINALS INC.	ATI	P0.55 per share	6.3%
5	REPUBLIC GLASS HOLDINGS CORP.	REG	P0.15 per share (regular); P0.15 per share (special)	6.3%
6	SUNLIFE FINANCIAL INC.	SLF	C$1.44 per common share	6.0%
7	NATIONAL REINSURANCE CORP. OF THE PHILIPPINES	NRCP	P0.10 per share	5.9%
8	GLOBE TELECOM	GLO	P65.00 per common share	5.8%
9	CITY & LAND DEVELOPERS, INC.	LAND	P0.15 per share	5.5%
10	MANILA BROADCASTING CO.	MBC	P0.18 per share	5.5%
11	SEMIRARA MINING CORP	SCC	P12.00 per share	5.5%
12	BDO LEASING & FINANCE INC.	BLFI	P0.05 per share	5.0%
13	A SORIANO CORP.	ANS	P0.50 per share (regular); P0.50 per share (special)	4.9%
14	CALAPAN VENTURES INC.	H2O	P0.20 per share	4.9%
15	GMA NETWORK INC.	GMA7	P0.40 per share (regular); P0.26 per share (special)	4.7%
16	PHIL. LONG DISTANCE TEL. CO.	TEL	P48.00 per share (special); P123.00 per share (regular)	4.6%
17	MANILA ELECTRIC CO.	MER	P8.10 per common share	4.6%
18	MANULIFE FINANCIAL CORP.	MFC	C$0.52 per common share	4.4%
19	BOGO-MEDELLIN MILLING CO.	BMM	P5.00 per common share	4.3%
20	ABOITIZ POWER CORP.	AP	P1.32 per share; P0.22 per share (special)	3.7%
21	PHINMA CORP.	PHN	P0.40 per share	3.6%
22	PANCAKE HOUSE INC.	PCKH	P0.1469 per share	3.6%
23	PNOC EXPLORATION CORP.	PECB	P0.75 per share	3.4%
24	PETROENERGY RESOURCES CORP.	PERC	P0.20 per share	3.4%
25	SPLASH CORP.	SPH	P0.06 per share	3.4%
26	PHILIPPINE SAVINGS BANK	PSB	P2.40 per share	3.4%
27	NICKEL ASIA CORP.	NIKL	P0.80 per share	3.3%
28	METRO PACIFIC TOLLWAYS CORP.	TOL	P0.27 per share	3.3%
29	TRANS-ASIA OIL & ENERGY DEV'T	TA	P0.04 per share	3.3%

Source: Bloomberg (as of December 3, 2012)

Read these other interesting articles!

• Dividend Yield of PSE index (PSEi) stocks in 2012
• Top 10 PSE Stocks with High Dividend Yield (2011)
• Tax on Cash Dividends in the Philippines
• What are Ex-Date, Ex-Dividend Date, Record Date?
• Forum Discussion: Stocks and Stock Trading

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