High-dividend shares top investors' priorities
The China Post news staff
February 28, 2012, 12:07 am TWN
With the local bourse to see increasing correction and consolidation along with the weighted share price index approaching the 8,000-point mark, those shares with high stock dividends and high yield rates have become priority choices by investors, especially when a high season will come soon for listed firms to hold shareholders meetings, according to market sources.
Institutional investors noted as the weighted share price index is approaching the 8,000-point mark, share prices will fluctuate around the average yearly line in the short term. In case of a rally, investors can unload weak-performance shares and keep those stocks with high stock dividends and high cash yield rates. But if the index plunges, investors can step in to purchase blue-chip shares at lows.
As of Feb. 20, there were 20 listed shares with a cash yield rate of over 0.5 percent, with such shares mainly distributing cash dividends to their shareholders. Among them, three have boasted cash yield rates of over 6 percent, including Pro-Hawk Corp., a maker of garage door bearings and car wash roller; Test Research Inc., a solutions provider in inspection and testing automation for the electronics, information and communications industry; and Polaris Futures Co., Ltd.
In addition, Shen's Art Print Co., Ltd. has seen its cash yield rate reaching 5 percent. Another three listed firms with an yield rate of 4 percent are Hong Yi Fiber Ind. Co., Ltd.; Acelon Chemicals & Fiber Corp.; and Advanced Ceramic X Corp., a total solution provider of wireless low-temperature co-fired ceramics for applications in wireless communications.
Meanwhile, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest wafer foundry service provider, has announced a cash dividend of NT$3 per share will be given to shareholders for last year's earnings, translating into a cash yield rate of 3.84 percent if based on the firm's closing price seen on Feb. 23.
Seven other listed firms have also posted cash yield rate of 3 percent or so, including Chroma ATE Inc., a turnkey test and automation solution provider; and Capella Microsystems Inc., a fabless IC designer versed in opto-electronics related high-performance ICs.
Market dealers said that as listed shares will announce their earnings results of 2011 and dividend distribution plans, those shares with high stock dividends and cash yield rates will become priority investment targets for investors.
So far this year, the weighted share price index of the local bourse has rallied 13 percent. But the corresponding index of those shares with high stock and cash dividends have enjoyed a higher rise of 15.38 percent, indicating investors showing greater interest in buying such shares, the dealers said.