The Chairwoman of the Executive Committee of the Capital Market Opportunity Center (CMOC) and the Market for Alternative Investment (MAI), Ms. Sopawadee Lertmanaschai, has disclosed the announcement of interim dividend payments (Jan. - Sep. 2003) by the listed companies on the SET and MAI which showed an improved trend both in terms of the number of listed companies paying out dividends and the total value of dividends paid. There were 59 companies paying out dividends while during the same period in 2002, there were 45 companies. The total value of dividends paid was recorded at 22,343.03 million baht, up 165.28% when compared to the 8,422.53 million baht for the same period in 2002.
"An increase in the number of companies paying out dividends as well as in the value of the interim dividends when compared to the same period last year reflects the improved operational performance of listed companies. When calculating the returns on dividend payments compared to their average market capitalization in the nine months from January - September 2003, it was found that two-thirds of companies that paid put dividends (39 out of 59 companies) paid between 2-5% dividend yield, and 12 companies paid more than 5% yield. Returns on dividend are therefore considered satisfactory compared to other investment alternatives including saving deposits," Ms. Sopawadee said. The Top five companies with the highest interim dividend yields for the period of Jan. - Sep. 2003 are CVD Entertainment Plc. (CVD) paid out a 7.9% yield, United Palm Oil Industry Plc. (UPOIC) paid out a 6.8% yield, Thai Agri Foods Plc. (TAF) paid out 6.1% yield, Thai Vegetable Oil Plc. (TVO) paid out 5.7% yield, and Thai Industrial Connection Plc. (TICON) paid out 5.7% yield.
By sector, the top five sectors, with highest value of interim dividend payments for the period of Jan. - Sep. 2003, are the communication sector which paid a combined value of 8,109.5 million baht, the building & furnishing materials which paid a combined value of 4,518.2 million baht, the energy sector which paid a combined value of 2,242.4 million baht, the property development sector which paid a combine value of 1,769.3 million baht, and the food and beverages sector which paid a combined value of 1,519 million baht.
"It is apparent that the listed companies have paid out dividends at higher rates than saving deposits. Therefore, if investors selectively invest in listed companies, which regularly pay out good dividends, they can expect better returns. Investing can then be another alternative for managing ones personal savings by allocating some part of them to the stock market. Nevertheless, it is recommended that they thoroughly study the dividend payment policies and business trends of the companies as well as other factors likely to have an influence on the companies' operations. Cautious forethought is advised before one can make worthwhile investments," CMOC chairman concluded.
Please click here for statistics on interim dividend payments.