Sat, Mar 23, 2013 - Page 14 News List

Siliconware shares soar on generous dividend payment

Staff writer, with CNA

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.

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