Philippine Seven Corporation (PSC) considers the benefit of its shareholders as one of its priority management policies. It aims to sustain revenue stream and progressive growth to further enhance shareholder value. PSC shall continue to return capital to shareholders through a sustainable dividend policy. Effective 2015, the Company intends to pay at least 20% of annual net profits by way of cash dividends. This considers future capital requirements and potential growth opportunities. The Board regularly reviews the dividend policy, including the frequency of distribution, taking into account all of the above.
Dividends to be paid in cash by PSC are subject to approval by a majority of the Board of Directors and no further approval from PSC’s shareholders is required. Dividends to be paid in the form of stock requires both the approval of a majority of the Board of Directors and the approval of shareholders representing not less than two-thirds of PSC’s outstanding capital stock. All dividends to be declared are subject to the approval of the SEC. There are no known restrictions to the PSC’s ability to pay dividends on shares.
As per SEC Rules, cash dividends declared by a stock corporation must have a record date not less than 10 or more than 30 days from the date the cash dividends are declared. With respect to stock dividends, the record date shall be not less than 10 or more than 30 days from the date of shareholders’ approval, provided however, that the set record date is not to be less than 10 trading days from receipt by the PSE of the notice of declaration of stock dividend. In the event that a stock dividend is declared in connection with an increase in authorized capital stock, the corresponding record date is to be fixed by the SEC.
A cash dividend of Sixty Five Centavos (Php0.65) per share was declared and approved during the board of directors meeting last June 16, 2017. Stockholders of record as of July 04, 2017 were entitled to said cash dividend and the payment date was July 14, 2017.
Also, stock dividend was declared and approved by the stockholder during the annual meeting last June 16, 2017. The stock dividend corresponds to 65% of the outstanding capital stock of the Corporation of 458,435,323 shares or equivalent to 297,982,960 common shares. Stockholders of record as of November 28, 2017 were entitled to said stock dividend and the payment date was set on December 14, 2017. Total outstanding capital stock of the Corporation after the payment date of the stock dividend is 756,418,283. There is no restriction that limits the ability of the Company to pay dividends on common equity. Below is the summary of cash and stock dividend declaration of the Corporation.
|Total Stock Dividend Declared (M Peso)||297,983||–||–||–||59,796||51,996||45,214|
|Cash Dividend Per Share||0.65||0.55||0.40||0.30||0.10||0.10||0.10|
|Total Cash Dividend Paid (M Peso)||297,983||252,139||183,374||137,531||39,864||34,664||30,143|
|YEAR||CASH||AMOUNT||STOCK||NO. OF SHARES|