Philippine Stocks That Pay Quarterly Dividends

Income through dividend stocks is a great way of building passive source of income.

In search for regular dividend payers

Unfortunately, not all publicly listed companies in the Philippine Stock Market (PSE) pays dividends. Additionally, it is also disappointing to know that only a handful of these companies pay regular dividends to its shareholders. Majority of the few dividend stocks are semi-annual and annual payers. In other words, if your goal is passive income through dividends choices are very limited.

In contrast, investors in countries such as the United States of America (US) and Canada are very fortunate they can build their portfolio and receive dividends more frequently such as quarterly or even monthly.

Pay yourself first and develop the right temperament

If you are an investor with a long-term horizon it doesn’t matter how frequent you receive dividends. What’s important is you invest regularly. 

Establish strong fundamentals and develop a habit of investing regularly. Don’t let your emotions in investing overpower your decisions during market downturn.  Ask yourself, "Have I done my own research and laid down my solid fundamentals before partnering with this company? "  If the answer is Yes, then you will be able to avoid the strong temptations to sell your investments unnecessarily. A savvy and intelligent investors take this as an excellent buying opportunity.

Receiving regular dividends not a lost cause after all for Philippine investors

Philippine investors are relieved to know that there are two companies that have been proven to pay their shareholders quarterly for a couple of years now.

Certainly, these two companies will be a great addition to your portfolio if regular dividend income is your main objective.

On top of that, these two companies are among the top 30 blue-chip companies of the Philippine Stock Index.

What are these two companies?

Globe Telecom Inc is a household name that most of the Filipinos are familiar with. It is a telecommunication company that provides mobile, home phone and internet services. The company is valued at P 245.9 billion pesos.

Sector: Communication Services

Industry: Telecom Services

Key Facts:

Price = P 1840 / share

PE Ratio = 13.21

Return on Equity (ROE) = 27.56% Trailing Twelve Months (TTM)

Debt/Equity Ratio = 0.03 TTM

3 Year Revenue Growth = 8.01

3 Year Net Income Growth = 4.16

Dividend Yield = 4.92%

Payout Ratio = 60.3 TTM

Note: Shareholders are expecting to receive dividends quarterly (March, June, September, and December)

BDO Unibank Inc. is the biggest bank in the Philippines valued at P 666.72 billion pesos. It is a full-service bank that provides a variety of products and services. BDO is a member of SM Group one of the large conglomerate companies in the Philippines.

Sector: Financial Services

Industry: Banking

Key Facts:

Price = P 152 / share

PE Ratio = 15.64

Return on Equity = 12.86% TTM

Debt/Equity Ratio = 0.50 TTM

3 Year Revenue Growth = 16.39

3 Year Net Income Growth = 9.49

Dividend Yield = 0.79%

Payout Ratio = 12.2 TTM

Note: Shareholders are expecting to receive dividends quarterly (March, June, September, and December)

What are these stats mean?

Those figures above showed that these two companies are not overvalued trading at PE equal or below 15 and have very minimal debt with both D/E ratio of under 0.50.

With increasing revenues and net income growth in the last 3 years, excellent return on equity (ROE) to its shareholders, and payout ratio of under 60, there is no doubt that you have two of the most solid and stable dividend stocks in the Philippine Stock Market (PSE).

Having said that, “Past performance does not guarantee future results.” In any case, exercise due diligence on all your investment decisions.

 

Final Thoughts

Globe Telecom and BDO Unibank are two excellent companies that you can now add to your portfolio if you are planning to build your regular passive income through dividends.

 

 

4
Let us know in the comments

avatar
1 Comment threads
3 Thread replies
1 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
Rommel FaunillanMay TuckerMay Tucker Recent comment authors
  Subscribe  
newest oldest
Notify of
May Tucker
Guest
May Alabastro

How do you invest with them?