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

[TABLE=171]

Source: Bloomberg (as of December 3, 2012)

Read these other interesting articles!

About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

8 thoughts on “High Dividend-Paying Stocks in the Philippines (2012)”

  1. Stephen: I am interested in your Letters in the Mail subscription. I am a high faculty English teacher, and i assumed this could possibly be a fantastic way to obtain my students to write responding into the letters. Nonetheless, I have to be certain that the topics from the letters is going to be appropriate for my students 9, 10, and 11th graders. Will you please comment on what the topics is going to be in general? Thank you.

    Reply

Leave a Comment