PLDT, ICTSI, MetroBank given top investment weighting in new PSE dividend yield index
MANILA, Philippines – Telco giant PLDT Inc., International Container Terminal Services Inc. (ICTSI) and Metropolitan Bank & Trust Co. (Metrobank) received the top rank in the Philippine Stock Exchange’s recently launched dividend yield index.
Out of 20 companies in the index, the three companies were given the largest investment weight of 10 percent for consistently paying high-yielding dividends. Other selection criteria included liquidity, free float, and financials.
According to the PSE, the index selection criteria and methodology were benchmarked against peer exchanges such as Thailand, Indonesia, Taiwan and Hong Kong.
“This affirms PLDT’s balanced approach to capital management, where we continue to provide consistent returns to our shareholders even as we manage our investment in capex and keep our leverage at prudent levels,” Alfredo S. Panlilio, President and CEO, said in a statement.
PLDT has consistently paid out dividends from its annual earnings. This was in line with its dividend policy of 60 percent payout on telco core income.
In 2021, PLDT’s cash dividends translated to a yield of 5 percent based on its year-end closing price.
The PSE launched the dividend yield index and a new MidCap index last March 28.
The former was designed to showcase the mid-sized companies while the latter highlights the companies that consistently give high-yielding dividends.
“Ever since, we only have the main composite, All Shares and sectoral indices in the PSE. These thematic indices are long overdue and we are pleased to finally make available the first two sets of new indices,’ PSE president and CEO Ramon S. Monzon said.
“In developing these indices, we consulted with market participants to ensure that the selection criteria and methodology are acceptable to those who want to track or benchmark on the new indices,” he added.
Both indices have 20 constituents and the index members as of the February 2022 recomposition stemmed from a review of companies from January to December 2021.
The companies included in the PSE Mid Cap Index were AREIT Inc., Bloomberry Resorts Corp., Cebu Air Inc., Century Pacific Food Inc., Cosco Capital Inc., DoubleDragon Corp., DMCI Holdings Inc., D&L Industries Inc., Filinvest Land Inc., GMA Network Inc., AllHome Corp., Manila Water Company Inc., Nickel Asia Corp., Petron Corp., Philippine National Bank, Philex Mining Corp., Robinsons Retail Holdings Inc., Semirara Mining and Power Corp., Pilipinas Shell Petroleum Corp., and Vista Land & Lifescapes Inc.
The companies included in the PSE dividend yield Index were Aboitiz Equity Ventures Inc., Aboitiz Power Corp., AREIT Inc., Bank of the Philippine Islands, DMCI Holdings Inc., D&L Industries Inc., Globe Telecom Inc., GMA Network Inc., ICTSI, LT Group Inc., Metrobank, Manila Electric Co., Metro Pacific Investments Corp., Nickel Asia, Robinsons Land Corp., Robinsons Retail Holdings Inc., Semirara Mining and Power Corp., Security Bank Corp., PLDT, and Universal Robina Corp.
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