Cash dividend lifts BDO

BDO Unibank, Inc. was last week’s most actively traded stock after disclosing a cash dividend declaration on the common shares of stockholders earlier this month.

A total of 26.03 million BDO shares worth P2.89 billion exchanged hands on the trading floor during the Dec. 12-16 week, data from the Philippine Stock Exchange showed.

The Sy-led lender’s share price closed at P107.20 apiece, down 0.3% from P107.50 on Dec. 9. The bank’s share price slipped 11.2% since the start of the year.

For three days last week, its stock gained 3%, 1.6%, and 1%, respectively, from Dec. 12 to 14.

“The main factor that pushed BDO to be one of the most active stocks is its disclosure of stock and cash dividends declaration within this month,” Aniceto K. Pangan, equity trader at Diversified Securities, Inc. said in an e-mail.

In a disclosure to the stock exchange on Dec. 3, BDO said its board of directors approved the declaration of regular cash dividends on common shares amounting to P1.58 billion or P0.30 per share, payable on Dec. 29 to all stockholders on record as of Dec. 20.

On March 26, the BDO board agreed to the declaration of a 20% stock dividend, an increase in its authorized capital stock (common shares) to 8.5 billion shares from 5.5 billion, and an amendment to its articles of incorporation to reflect the increase.

The disclosure also noted that the cash and stock dividend declarations reflect BDO’s commitment to providing consistent, steady returns and value to its shareholders.

BDO’s consolidated net income in the third quarter increased by 46.1% to P16.12 billion as its gross revenues grew by 18.6% to P43.37 billion year on year.

Its profit for nine months to September went up by 23.6% to P40.16 billion. Nine-month gross revenues rose 10.9% to P119.67 billion.

Diversified Securities’ Mr. Pangan estimates revenues of P240 billion for BDO this year.

“BDO is expected to continue to grow its revenue for the year with the ease in mobility restrictions,” said Mr. Pangan.

For this week, Mr. Pangan expects BDO’s stock to range from its immediate support of P102 apiece to its immediate resistance of P115.00 per share. — Lourdes O. Pilar