PSEi Dividend-Paying Stocks

The PSEi includes large, mature companies that may prioritize reinvestment (e.g., expanding infrastructure or acquisitions) over high dividends. Smaller companies outside the index often use higher yields to attract investors, but with greater risk. Note that some PSEi stocks, like Manila Electric, buck this trend with high yields.

The PSEi’s heavy weighting in banking, utilities, and conglomerates drives its overall dividend profile. For example:

• Banks: High yields due to stable interest income.
• Conglomerates: Moderate yields but long-term consistency (e.g., 10-year trackers).
• Property/Retail: Lower yields but occasional growth spikes.

Conglomerates and banks in the PSEi benefit from diversified revenue streams (e.g., telecom, real estate, and banking under one parent company), insulating them from sector-specific downturns and enabling decades of uninterrupted dividends.

Growth-focused PSEi companies (e.g., retail or tech-heavy holdings) may sharply increase dividends from a small base (high YoY growth) while keeping yields low due to rising share prices from market optimism.

Utilities in the PSEi (filter by sector tags) operate in regulated, cash-generative industries (e.g., power distribution). Their monopolistic positions allow steady dividends, even during economic slowdowns.

Stocks with high CAGRs (e.g., 12% over 5 years) often belong to sectors with rising domestic demand (e.g., consumer goods). These metrics signal which PSEi industries are transitioning from growth-focused to shareholder-friendly models.

Historically, most PSEi stocks pay dividends, and currently, all do. However, there’s no rule mandating it. If a stock stops (e.g., to fund growth), it stays in the PSEi as long as it meets criteria like market cap and liquidity. Use the Dividend-Paying Stocks filter to focus on income-generating options.

Sort the table by dividend yield to identify top performers like BDO (2.61%) or MER (3.91%). Cross-check these with market cap and payout ratios to ensure the yield is sustainable.

Yield moves inversely with price. If ICT’s price drops from ₱355 to ₱300 with a steady ₱14.16 dividend, the yield rises from 3.99% to 4.72%. This can highlight buying opportunities when prices dip but dividends hold firm.

Philippine residents face a 10% withholding tax on PSEi dividends. For SM’s ₱9 payout, you’d net ₱8.10. This tax reduces your effective yield, so factor it into your return calculations.