Amid heightened market volatility and a declining Philippine Stock Exchange index (PSEi), PLDT Inc. has emerged as a standout for income-focused investors, according to an 8 April strategy note from Macquarie Capital, which reaffirmed its “Outperform” rating on the telecom giant.
With the PSEi falling 4.3 percent to a new 52-week low of 5,822.85 as of 7 April, Macquarie highlighted PLDT’s resilience through its strong dividend profile—forecasting a 2025 dividend yield of 9.3 percent, significantly higher than the broader market’s average of 3.7 percent.
“High-quality dividend names warrant renewed attention as investors reposition toward safety and predictable income,” Macquarie said in the note. PLDT, it added, ranks among the market’s top dividend payers, supported by a robust 2025 projected return on equity of 33 percent.
The investment house set a 12-month target price of ₱1,800 for PLDT shares, implying a 47 percent upside from the April 7 close of approximately ₱1,224.
While bullish on the company’s income potential, Macquarie flagged downside risks, including the potential for revenue softness stemming from lower pre-paid average revenue per user (ARPU) and a less profitable customer mix, which could in turn impact future dividends.
Nevertheless, PLDT’s recent financial performance underscores its strong fundamentals. The company reported a 21 percent increase in net income to ₱32.3 billion in 2024 from ₱26.6 billion in the previous year. Consolidated service revenues rose by 2 percent year-on-year to ₱194.7 billion, while core telco income, excluding non-recurring items, grew 2 percent to ₱35.1 billion.
With its consistent earnings and high dividend yield, PLDT is increasingly viewed as a defensive play in an uncertain market environment, reinforcing its status as a key corporate bellwether for income-seeking investors.
