Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has increased its cash dividend to NT$6 per share on its third quarter earnings, a move analysts described as an attempt to make its shares more attractive.
In a statement issued on Tuesday, the world’s largest contract chipmaker said its board of directors approved a proposal to provide a cash dividend of NT$6 per share after posting a record high net profit of NT$452.3 billion (US$14.56 billion), or earnings per share of NT$17.4, in the July-to-September quarter.
The NT$6 payout is up from NT$5 for its second-quarter earnings.
Photo: CNA
TSMC said the ex-dividend date is set for March 17 next year, with dividends to be paid on April 9.
TSMC shares yesterday rose 0.68 percent to close at NT$1,475, off a high of NT$1,485, in Taipei. The company is Asia’s only stock worth more than US$1 trillion in market capitalization.
In 2019, TSMC became the first Taiwanese company to issue cash dividends on a quarterly instead of annual basis. Analysts believe this change encourages investors to hold the stock longer.
TSMC chairman C.C. Wei (魏哲家) is expected to receive NT$43.3 million in dividends for the quarter from the 7.22 million shares he owns.
The National Development Fund, TSMC’s largest shareholder with a 6.38 percent stake, is set to receive NT$9.92 billion in cash dividends for the quarter.
Meanwhile, the company said its board on Tuesday also approved a capital appropriation plan of about US$14.98 billion.
TSMC said the funds would be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with the necessary systems, it said.
The funds would also support investment in research and development, and sustain capital expenditure, the company said.
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