Keeping shareholders happy and customers engaged appears top most in the list of priorities at SM Investments Corp., the flagship investment company of the Sy Group.
SM Investment said Wednesday its board approved a higher dividend payout of P11 billion, or P9 a share, for shareholders on record May 9. The cash dividend, which will be paid on May 23, is 20 percent higher than only P9.2 billion, or P7.50 a share, declared last year.
“For the third year in a row, we have substantially raised our dividends, which now meet the levels we achieved before the pandemic. This is the result of the strong performance by the group,” said Frederic DyBuncio, president and chief executive officer of SM Investments.
As large as the cash dividend looked, it represented a dividend payout of 0.95 percent given Wednesday’s closing share price of P947. It is also unlikely to make a large dent on the company’s retained earnings that total P480.3 billion at the end of 2023.
The retained earnings will help SM Investments continue expanding nationwide and open new markets.
SM Investments has stakes in property developer and shopping mall operator SM Prime Holdings, the country’s largest lender by assets BDO Unibank, transport company 2Go Group, and the renewable power firm Philippine Geothermal Production Co.
“We will continue to invest in the growth of the Philippines and we are committed to being a catalyst for responsible development. We have a young, dynamic, higher-earning population who will help support and drive economic activity,” DyBuncio said.
SM Prime plans to open four new malls and roll out as many as 10,00 residential units this year.
Alfamart, SM Investment’s minimart grocery format, is set to increase its store expansion by at least 400 stores while BDO plans to add as many as 120 branches this year.
SM is also set to explore, through Philippine Geothermal, new steam fields in Northern and Southern Luzon with the goal of doubling the current steam production of 300 megawatts over the medium-term.
2GO added two new ships to increase its fleet to 11 ships serving 19 ports.
Meantime, Airspeed, another SM-owned logistics company, is keen on expanding its distribution facilities in key cities in Luzon, the Visayas and Mindanao and opening more kiosks and collaborations with service providers.
“We expect our core businesses to continue its growth trajectory. Additionally, we anticipate that our portfolio investments will contribute significantly to our overall performance in the medium-term as these are well-positioned to capture opportunities in high growth sectors,” DyBuncio said.
