Home / Stock Trading / High Dividend-Paying Stocks in the Philippines (2012)

 
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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

Stocks, Mutual Funds, Forex, Finance Philippines

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

RankCompanyCode2012 Cash Dividends per ShareDividend Yield
1MANILA BULLETIN PUBLISHING CORPORATIONMBP0.05 per share7.4%
2I-REMIT INC.IP0.1995 per share7.2%
3CENTRO ESCOLAR UNIVERSITYCEUP1.00 per share6.8%
4ASIAN TERMINALS INC.ATIP0.55 per share6.3%
5REPUBLIC GLASS HOLDINGS CORP.REGP0.15 per share (regular); P0.15 per share (special)6.3%
6SUNLIFE FINANCIAL INC.SLFC$1.44 per common share6.0%
7NATIONAL REINSURANCE CORP. OF THE PHILIPPINESNRCPP0.10 per share5.9%
8GLOBE TELECOMGLOP65.00 per common share5.8%
9CITY & LAND DEVELOPERS, INC.LANDP0.15 per share5.5%
10MANILA BROADCASTING CO.MBCP0.18 per share5.5%
11SEMIRARA MINING CORPSCCP12.00 per share5.5%
12BDO LEASING & FINANCE INC.BLFIP0.05 per share5.0%
13A SORIANO CORP.ANSP0.50 per share (regular); P0.50 per share (special)4.9%
14CALAPAN VENTURES INC.H2OP0.20 per share4.9%
15GMA NETWORK INC.GMA7P0.40 per share (regular); P0.26 per share (special)4.7%
16PHIL. LONG DISTANCE TEL. CO.TELP48.00 per share (special); P123.00 per share (regular)4.6%
17MANILA ELECTRIC CO.MERP8.10 per common share4.6%
18MANULIFE FINANCIAL CORP.MFCC$0.52 per common share4.4%
19BOGO-MEDELLIN MILLING CO.BMMP5.00 per common share4.3%
20ABOITIZ POWER CORP.APP1.32 per share; P0.22 per share (special)3.7%
21PHINMA CORP.PHNP0.40 per share3.6%
22PANCAKE HOUSE INC.PCKHP0.1469 per share3.6%
23PNOC EXPLORATION CORP.PECBP0.75 per share3.4%
24PETROENERGY RESOURCES CORP.PERCP0.20 per share3.4%
25SPLASH CORP.SPHP0.06 per share3.4%
26PHILIPPINE SAVINGS BANKPSBP2.40 per share3.4%
27NICKEL ASIA CORP.NIKLP0.80 per share3.3%
28METRO PACIFIC TOLLWAYS CORP.TOLP0.27 per share3.3%
29TRANS-ASIA OIL & ENERGY DEV'TTAP0.04 per share3.3%

Source: Bloomberg (as of December 3, 2012)

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