Consumer powerhouse San Miguel Food and Beverage (SMFB), which is embarking on a share sale of as much as P141.8 billion this year, has committed to pay as much as 60 percent of yearly recurring earnings as dividends to shareholders.
Based on materials for an investors’ presentation, SMFB was pitching to be a major consumer proxy play in the stock market, being the “largest consumer player in the Philippines with proven business model, extensive and efficient distribution network and compelling financial profile.”
SMFB said its liquidity and leverage profiles remained stable and attractive, allowing the company to set a cash dividend policy of up to 60 percent of the prior year’s recurring net income.
This dividend commitment is higher than the average payout among publicly-listed companies in the stock market.
The most generous in the market so far is Pilipinas Shell Petroleum Corp. which has a cash dividend policy of up to 80 percent of prior year’s earnings while everybody else pays 40-50 percent in dividends, said Eagle Equities president Joseph Roxas.
Among retail investors, Roxas said “older ones usually like higher dividend payments while younger ones have more appetite for risk so they prefer capital appreciation.”
The presentation also outlined SMFB’s expansion program for various business units.—DORIS ABADILLA