Shares of Siliconware Precision Industries Co (矽品精密), one of Taiwan’s leading integrated circuit packaging and testing services providers, moved higher yesterday morning on a dividend payout ratio of more than 90 percent, dealers said.
The shares climbed 1.23 percent to NT$32.95 yesterday, outperforming the TAIEX, which lost 0.20 percent.
“Such a high dividend payout ratio was largely the result of the company sitting on large cash-equivalent funds,” Grand Cathay Securities (大華證券) analyst Mars Hsu (徐振家) said. “The high ratio is expected to raise the return on the equities and make Siliconware investors happy.”
In a statement released on Thursday, Siliconware said its board of directors had proposed a cash dividend of NT$1.67 per share based on last year’s results. Based on its earnings per share of NT$1.82, the payout ratio is 91.75 percent.
Based on the stock’s closing price of NT$32.55 on Thursday, the proposed cash dividend represents a dividend yield of 5.13 percent.
The dividend is expected to cost the company NT$5.14 billion (US$172.039 million) in cash, Siliconware said. In addition, the board of directors has also proposed paying NT$469 million in cash bonuses to its employees and giving NT$48.13 million to its board of directors and supervisors.
Last year, Siliconware posted NT$5.62 billion in net profits, or earnings per share of NT$1.82, compared with NT$4.84 billion in net profits, or earnings per share of NT$1.55, the previous year.
Last year, Siliconware’s consolidated sales totaled NT$64.66 billion, up 5.6 percent from 2011.