Far EasTone Telecommunications Co Ltd (遠傳電信), the nation’s No. 3 telecoms operator, yesterday said it aimed to stick to its 100 percent payout ratio in the next few years to ensure shareholders’ return on investment.
Yesterday, Far EasTone’s shareholders gave the green light to a plan to deliver NT$3 per share in cash dividends based on the telecoms company’s net profit of NT$8.88 billion (US$297 million), or NT$2.47 per share, plus an additional NT$0.531 per share from the company’s accumulated profits.
Based on the company’s closing share price yesterday of NT$65.90, Far EasTone’s cash dividend of NT$3 per share would translate into a dividend yield of 4.55 percent.
“It is the company’s long-term policy to deliver stable cash dividends,” chairman Douglas Hsu (徐旭東) told reporters on the sideline of the shareholders’ meeting.
The company would use part of its accumulation profits to invest in 4G technology, Hsu said.
Hsu called on the government to allow local WiMAX license holders to switch to Long Term Evolution (LTE) technology when it auctions eight LTE licenses in the future. Far EasTone now holds a WiMAX license.
The telecoms operator also said its three-year goal to increase the number of subscribers to 7 million next year was attainable, president Yvonne Li (李彬) said.
The company had 6.69 million mobile users as of March 31.
Shareholders also approved a private placement proposal to sell 440 million shares for NT$17.78 billion, or NT$40 a share, to strategic investors.