Chemical producer D&L Industries Inc. doubled its dividend payout policy to 50 percent of the previous year’s net recurring income from an earlier commitment of 25 percent.
“With minimal capex [capital expenditure] needs in the mid-term, improving returns, very low net borrowings and good cash flow generation, the company remains highly committed to driving shareholder value, with the dividend payout policy increased from 25 percent to 50 percent of previous year’s recurring net income and an option to declare special dividends,” D&L said in a disclosure to the stock exchange.
Meanwhile, the company during its stockholders meeting also declared a regular cash dividend of P0.16 per share, plus a special cash dividend of P0.04 per share to shareholders of record as of June 20. Payment will be made on July 8.
Shareholders will receive P0.20 dividends per share, or a dividend yield of 2.1 percent based on June 3 closing of P9.65.
This year’s dividend, amounting to P1.43 billion, represented an increase of 167 percent from last year’s P536 million and equivalent to 63 percent of last year’s recurring net income.
D&L’s recurring net income reached P2.28 billion in 2015, as sales volume for high-margin products continued to increase.
Net income similarly increased 12 percent year-on-year to P576 million in the first quarter of 2016.
The company said including this year’s payment, the company returned a total of P3.22 billion in cash to shareholders through dividends since the IPO in 2012. The company also paid a 100-percent stock dividend in September 2015.