Sat, Jul 02, 2016 - Page 12 News List

Average dividend yield in Taiwan hits 4.6 percent

Staff writer, with CNA

The average dividend yield provided by Taiwanese listed companies last year hit 4.6 percent, greater than those recorded in several major markets in the region, as well as that seen on Wall Street, the Taiwan Stock Exchange (TWSE) said on Thursday.

Dividend yield is a ratio of a company’s cash dividend per share to its share price. When a listed company records a higher dividend yield, investors who own the stock enjoy a higher return.

Dividend yields grew even higher this year, the TWSE said.

The exchange said that Taiwan’s average dividend yield as of the end of May stood at 4.69 percent, making the local equity market more attractive to investors.

As of Friday last week, a total of 545 listed companies on the local main board recorded a more than 3 percent dividend yield. The 545 firms accounted for 62 percent of total listed firms in the market, with the dividend yields of 19 among the 545 surpassing 10 percent as of that date, the TWSE said.

A total of 146 companies listed on the main board have decided to distribute more than NT$3 in cash dividend per share based on their earnings per share for last year, which indicated that the 146 companies had solid bottom lines.

Among the 146 companies, smartphone camera lens supplier Largan Precision Co (大立光) decided to distribute NT$63.50 in cash dividend per share, while PC maker Asustek Computer Inc (華碩) and USB maker Voltronic Power Technology Corp (旭隼) are each to pay NT$15 in cash dividends.

In the old economy sector, Yulon Nissan Motor Co (裕隆日產), which sells cars under the Nissan brand, is to distribute NT$12.5 in cash dividends, while Hotai Motor Co (和泰汽車), the local sales agent for Japan’s Toyota Motor Corp, is to give NT$12 in cash dividends, the TWSE said.

While high dividend yields have made the local equity market competitive, the price-to-earnings ratios of many listed companies in the local equity market have been low and their turnover ratios have lagged behind their regional counterparts, as many investors lacked confidence in the health of local listed firms, in particular in the old economy sector, the TWSE said.

The TWSE said that it is determined to hold more investor conferences to help investors gain a better understanding of the local equity market.

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