Powerchip Semiconductor Corp (力晶半導體), the nation's biggest maker of computer memory chips, yesterday said it planned to increase its cash dividend to NT$1.5 per share after last year's record high earning -- marking a three-year distribution high.
The cash dividend would be more than doubled from NT$0.55 per share in 2005. Powerchip distributed a cash dividend of NT$1 per share after its 2004 earnings.
The yield is about 7.41 percent based on the stock's closing price of NT$20.25 yesterday.
"The cash dividend hike will be encouraging news for investors [in the short term] because of the high yield," said Wang Wanli (
Powerchip's board yesterday also approved the proposed distribution of a 10 percent stock dividend for each common share as well as the company's 2006 financial results.
Powerchip said early this year that net income spiked to NT$27.33 billion, or NT$4.48 per share, last year on higher chip prices, compared to NT$6.43 billion, or NT$1.14 a share, in 2005.
The board of Powerchip also gave the go-ahead for the issuance of NT$7.87 billion worth of new common shares this year, mostly for employee bonuses.
Both plans must still be approved by the annual shareholder's meeting on June 15.
Nanya Technology Corp (南亞科技) has said that it would distribute a cash dividend of NT$3.3 per common share and a 3 percent stock dividend.
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