Best Blue Chip Stocks Philippines with High Dividend Returns 2021
This article discusses the List of the Best Blue-Chip Stocks in the Philippines with high dividend returns as of 2021, which are referred to as such by the Philippine Stock Exchange (PSE), since according to PSE they are the top companies in the Philippines.
Blue-chip stocks are those that belong to huge firms or well-established businesses that have been around for a long time. These companies are well-known, well-established, and well-recognized as “Giants” because, despite economic troubles, they are usually profitable and steady, making them less volatile.
What is a Company Stock?
A stock (sometimes called equity) is a sort of investment that represents a company’s own part. When you buy a share of a firm’s stock, you’re buying a small piece of that company. Investors buy stocks in firms they believe will appreciate in value. If this occurs, the value of the company’s stock rises as well.
What are the Blue Chip Stocks?
Have you ever tried your hand at poker? Poker employs chips to represent money, with blue chips being the most valuable. The word “blue chip” comes from casino gaming, and it refers to the belief that blue chips are the most expensive in a set. Its definition has evolved over time to reflect what it implies today. It was originally used to refer to high-priced equities.
What is Dividend in Stocks Investments?
A payment made by a firm to its shareholders, either in cash or in-kind is what you call a “Dividend”. Dividends can be paid in a variety of ways, including cash, stocks, or other assets. The board of directors decides on a company’s dividend, which must be approved by the shareholders.
A portion of a company’s earnings that it distributes to its shareholders is another definition of a dividend. A firm is not required to pay dividends, though.
Where to View the Updated Dividend returns?
Philippine Stock Exchange. PSE holds a record of the updated dividend returns of top blue-chip companies. You may want to click the link to bring you to their dividends section. Another platform to check the yields of blue-chip companies is Bloomberg.com in the key statistics area of their website.
Blue-Chip Companies with High Dividend Return in the Philippines 2021.
Large enterprises in the Philippines frequently form corporations in order to be listed on the stock exchange, comply with regulatory bodies, and obtain access to financing through stock markets.
In the Philippines, such firms are listed on the (PSE), which is responsible for establishing suitable market conditions for stock trading. The PSE is a member of the Association of Southeast Asian Exchanges (ASEAN Exchanges).
We’re all familiar with most of most these businesses and the industry they are into, as they provide essential services like banking, electricity, telephones, and internet access. They work in the food, transportation, construction, and retail industries, among others.
Best Blue-Chip Companies with High Dividend Return in the Philippines 2021
The top dividend stocks to buy in the Philippines in 2021 are listed below. They primarily consist of blue-chip firms with significant dividend yields and favorable BUY ratings. Having met all standard requirements to be a Blue-Chip stock as imposed by Philippine Stock Exchange.
| Company | TICKER | Div Yield |
| Aboitiz Equity Ventures | AEV | 2.39% |
| Aboitiz Power Corp. | AP | 3.68% |
| Ayala Corp. | AC | 0.95% |
| Ayala Land | ALI | 0.41% |
| BPI | BPI | 2.17% |
| BDO | BDO | 1.14% |
| Century Pacific Food | CNPF | 1.41% |
| D&L Industries | DNL | 1.78% |
| DMCI Holdings | DMC | 8.12% |
| Filinvest Land | FLI | 2.82% |
| First Gen Corp. | FGEN | 2.00% |
| Globe Telecom | GLO | 5.82% |
| GT Capital Holdings | GTCAP | 0.56% |
| Int’l Container Terminal | ICT | 1.49% |
| JG Summit Holdings | JGS | 0.67% |
| Jollibee Foods Corp. | JFC | 0.41% |
| LT Group | LTG | 4.94% |
| Manila Electric | MER | 4.85% |
| Megaworld | MEG | 1.33% |
| Metro Pacific Investments | MPI | 2.31% |
| Metrobank | MBT | 2.28% |
| PLDT | TEL | 6.27% |
| Puregold | PGOLD | 1.13% |
| Robinsons Land | RLC | 3.06% |
| Robinsons Retail Holdings | RRHI | 1.59% |
| San Miguel Corp. | SMC | 1.32% |
| San Miguel Food & Beverage | FB | 1.97% |
| Security Bank | SECB | 2.73% |
| SM Investments Corp. | SM | 0.46% |
| SM Prime Holdings | SMPH | 0.26% |
| Universal Robina Corp. | URC | 2.48% |
| Vista Land | VLL | 1.47% |
| Wilcon Depot | WLCON | 0.53% |
Why do some businesses refuse to pay dividends or returns?
A firm that is still developing rapidly will normally not pay dividends because it wants to re-invest all of its profits to expand its business, pay off existing debt, buy other businesses, increase research and development, and innovate its technology. Dividends are not paid by mature companies who believe they can enhance value by reinvesting their earnings.
In the Philippines, how do you claim stock dividends?
How can you tell if your stock investments have paid out dividends? Dividends are typically paid in both stock and cash. In today’s world, you’ll be able to tell if you received a dividend because most stockbrokers send email notifications to dividend-eligible shareholders.
Here’s an example of a dividend notice:
This is to inform you of your cash dividend entitlement with details as follow:
Account No.: Stock Code: Cash Dividend (Php): Price/Share Ex-Date: No. of Shares Entitled to Cash Dividend: Gross Amount (Php) : Less Witholding Tax (Php): Net Amount (Php):
The notification also includes a detailed list of your dividend-eligible stock shares. If you are entitled to receive cash as a consequence of dividends, it will be credited to your trading cash balance. If you are eligible to receive stocks as a consequence of dividends, additional stock shares will be added to your portfolio.
How to Pick the Philippines’ Highest Dividend Paying Stock?
A high dividend yield does not imply that the company has significant earnings potential or long-term growth. The profitability of a stock is not determined by its dividend yield. Consider the stock’s present price, the company’s fundamentals, periodic earnings, future projects, and catalysts when making your stock picks.
What You Should Know About Dividends?
Ex-Div Date
Any holder of shares at the conclusion of the trading day preceding the ex-dividend date is eligible for a dividend. You will not be eligible for dividends if you acquire on the Ex-Div Date.
Record Date
It means that you will not receive dividends if you are not a registered owner of the stocks as of this date.
Payable Date
It is the date on which you will get your dividends or have them credited to your account.
Dividend Yield
Dividend Yield is a percentage that compares the stock’s current price to the company’s annual dividend payments (annual dividend divided by stock price).
The higher the dividend yield, the more money you’ll get in dividends. However, you should not rely solely on a high dividend yield because it is more crucial to look at a company’s financial strength and dividend payment history.
What is a Dividend Payout Ratio, and what does it mean?
The Dividend Payout Ratio measures how much of a company’s earnings are distributed to shareholders as dividends. Divide the company’s dividends per share by the earnings per share to arrive at this figure (EPS).
The payout ratio is useful because it informs investors how much of the company’s profit is returned to shareholders in the form of dividends against how much is kept. As a result, it aids in determining the available money to support and grow the company.
In the Philippines, how do you invest in dividend stocks?
Since you have now the idea about the Blue Chip Stocks Philippines with High Dividend Returns 2021, this time will learn how to invest in dividend stocks.
Time needed: 5 minutes.
Steps on how to invest in dividend stock in the Philippines 2021.
- Examine the stocks that provide dividends.
Add the firms you prefer to your watch list before you start investing in dividend stocks. Then, to narrow down your final company selections, analyze and assess each one.
Determine your investment goal and look for stocks that fit those criteria. Look at the company’s dividend payment history if you want to build a regular source of dividend income. Blue chip corporations are mature, well-established businesses that have a long history of delivering consistent dividends in both good and bad times.
Examine the company’s recent earnings history to ensure that it can continue to pay out its dividend. Examine any management or operational philosophy changes that could have an impact on profitability or dividends. - Look into the ex-dividend date of the stock.
In most major financial periodicals, the ex-dividend date is listed with dividend statements. The information is available through your investment broker, or you can call the company’s investor relations department to find out the ex-dividend date.
When the board of directors of a corporation declares a quarterly dividend payment, it also establishes a record date. The dividend is payable to all stockholders on the books of the corporation as of the record date. The record date is usually two business days before the ex-dividend date.
Purchase the stock before the ex-dividend date to receive the dividend. Meaning to be a stockholder of record and consequently receive the dividend for this quarter, before the ex-dividend date you must purchase the stock. - Register with a PSE-accredited online broker.
The Philippine Stock Exchange has certified most of the country’s largest banks to provide online trading platforms. Top stockbrokers such as BDO Securities (formerly BDO Nomura), First Metro Sec (for Metrobank clients), and COL Financial offer online account opening.
Use your broker to place your buy order. Purchasing dividend-paying stocks follow the same steps as purchasing any other stock. A full-service broker, a cheap broker, or an online broker are all options. If you don’t already have a brokerage account with the business, you’ll need to fill out a new account application and make a minimum deposit to cover your transaction.
You can place a market order, and your transaction will be executed at the current price of the stock. You can also place a limit order, which allows you to specify the maximum price per share that you are willing to pay. A limit order will not be executed unless a vendor ready to meet your price is discovered. - Stick to your investment plan.
The majority of dividend stock investors take a long-term strategy to invest. In other words, they buy and keep stocks until their portfolio has grown to the level of profit they desire.
- Obtain your dividends
Dividends are a source of additional income that you can get while holding your investment. In the same way, the value of your blue-chip stocks increases over time.
- Secure your profit
When your stock shares have reached your desired profit or you believe the stock price has reached its optimal level, you may sell them. Then it’s up to you to decide what to do with your profit.
The majority of shareholders reinvest their profits in the stock market, especially when they perceive a good entry opportunity. Money compounding has a lot of power. You may wish to study the individual profiles of the Top Blue-Chip Firms of the Philippines August 2021 now that you know which companies in the Philippines pay dividends.
Disclaimer:
Always keep in mind that all investments come with some level of risk. Performance in the past and present does not ensure success in the future. The following content is for Public awareness and is offered solely for educational purposes.
It is not intended to be used as investment advice or any other type of professional advice, and it should not be used as such. We recommend that you speak with the right professionals before acting on any such information.
We do not recommend any of the third parties mentioned in the article. Market and economic perspectives are subject to change without notice and may be out of date at the time of publication. Do not assume or imply that any of the securities, sectors, or markets discussed in this article are or will be lucrative.
The outcomes of historical or hypothetical performance are provided purely for the purpose of demonstration. Future performance is not guaranteed by historical records. Stocks are erratic, with prices fluctuating.
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