Annual dividends are fixed income that an investor can already lock in.

Factoring that into the computation of ones

total income from stocks, they could very well compensate for any losses brought about by price declines.
I have been holding on to my TEL stock for almost a decade now and, due to its high dividend policy, even if its stock
price would tumble back to P2,300, I am already in profit because of the dividends which I have already earned and
locked in through the years.
Having said that, I would just like to remind our readers to look into a companys dividend payout policy when
investing because dividends regardless of the form (may be cash or stock) provide real, tangible income to
investors on top of the income from capital appreciation.
Here now is our updated list of the Top 30 PSE stocks with the highest payout ratio in 2012.

Top 30 PSE Stocks with High Dividend Yield 2012

2012 Cash Dividends
Rank Company Code Dividend Yield
per Share
P0.375 per common
1 GINEBRA SAN MIGUEL GSMI 8.6%
share
2 MANILA BULLETIN PUBLISHING CORPORATION MB P0.05 per share 7.4%
3 I-REMIT INC. I P0.1995 per share 7.2%
4 CENTRO ESCOLAR UNIVERSITY CEU P1.00 per share 6.8%
5 ASIAN TERMINALS INC. ATI P0.55 per share 6.3%
P0.15 per share
6 REPUBLIC GLASS HOLDINGS CORP. REG (regular); P0.15 per 6.3%
share (special)
C$1.44 per common
7 SUNLIFE FINANCIAL INC. SLF 6.0%
share
NATIONAL REINSURANCE CORP. OF THE
8 NRCP P0.10 per share 5.9%
PHILIPPINES
P65.00 per common
9 GLOBE TELECOM GLO 5.8%
share
10 CITY & LAND DEVELOPERS, INC. LAND P0.15 per share 5.5%
11 MANILA BROADCASTING CO. MBC P0.18 per share 5.5%
12 SEMIRARA MINING CORP SCC P12.00 per share 5.5%
13 BDO LEASING & FINANCE INC. BLFI P0.05 per share 5.0%
P0.50 per share
14 A SORIANO CORP. ANS (regular); P0.50 per 4.9%
share (special)
15 CALAPAN VENTURES INC. H2O P0.20 per share 4.9%
P0.40 per share
16 GMA NETWORK INC. GMA7 (regular); P0.26 per 4.7%
share (special)
P48.00 per share
17 PHIL. LONG DISTANCE TEL. CO. TEL (special); P123.00 per 4.6%
share (regular)
18 MANILA ELECTRIC CO. MER P8.10 per common share 4.6%
C$0.52 per common
19 MANULIFE FINANCIAL CORP. MFC 4.4%
share
20 BOGO-MEDELLIN MILLING CO. BMM P5.00 per common share 4.3%
 2012 Cash Dividends
Rank Company Code Dividend Yield
per Share
P1.32 per share; P0.22
21 ABOITIZ POWER CORP. AP 3.7%
per share (special)
22 PHINMA CORP. PHN P0.40 per share 3.6%
23 PANCAKE HOUSE INC. PCKH P0.1469 per share 3.6%
24 PNOC EXPLORATION CORP. PECB P0.75 per share 3.4%
25 PETROENERGY RESOURCES CORP. PERC P0.20 per share 3.4%
26 SPLASH CORP. SPH P0.06 per share 3.4%
27 PHILIPPINE SAVINGS BANK PSB P2.40 per share 3.4%
28 NICKEL ASIA CORP. NIKL P0.80 per share 3.3%
29 METRO PACIFIC TOLLWAYS CORP. TOL P0.27 per share 3.3%
30 TRANS-ASIA OIL & ENERGY DEV'T TA P0.04 per share 3.3%

MANILA WATER COMPANY, INC. MWC

CURRENT PRICE = PhP 26.35 (as of 090712)

P/E RATIO TEST:

2009 Earnings-per-share = PhP 1.3100

2010 Earnings-per-share = PhP 1.6200
2011 Earnings-per-share = PhP 1.7400
2012 1H Earnings-per-share = PhP 0.8800

Average earnings-per-share (based on the past 3 years and 2 quarters) = PhP

1.6075
Average price earnings ratio (based on the past 3 years and 2 quarters) =
16.39

Benjamin Graham recommends current price no more than 15 times average

earnings over the past three years.
This issue failed Grahams price-earnings ratio test.
However, threshold value, P/E <15 should be taken as arbitrary level.
Ratios do not tell us the whole story by itself. It is more useful to compare the
ratios of one company to other companies in the same industry.

PRICE-TO-BOOK RATIO TEST:

Total Equity = PhP 24,703,368,000

Outstanding Shares = 2,012,186,848
Book-Value per Share = PhP 12.28
Price-to-Book ratio (PB) = 2.15

Graham recommends that current price should not be more than 1.5 times the
book value last reported.
This issue failed Grahams price-to-book ratio test.
However, Threshold value, P/B <1.5 should be taken as arbitrary level.
Ratios do not tell us the whole story by itself. It is more useful to compare the
ratios of one company to other companies in the same industry.

NET-WORKING-CAPITAL OR RARE BARGAIN TEST:

Current Asset = PhP 9,032,547,000

Total Liabilities = PhP 38,725,372,000
Net Working Capital = PhP (29,692,825,000)
Current Asset to Total Liabilities ratio = 0.23

* By net-working-capital, Graham means current assets (such as cash,

marketable securities, and inventories) minus total liabilities (including
preferred stock and long-term debt).

Total liabilities is greater than current asset.

Graham recommends issues with positive net-working-capital.
This issue failed Grahams net-working-capital or RARE BARGAIN test.

Likewise, total liabilities is greater than equity.

Total liabilities to equity ratio = 1.57
This company is relatively highly leveraged.

GRAHAMS BLENDED MULTIPLIER TEST:

P/E = 16.39
P/B = 2.15
P/E*P/B = 35.18

Graham suggests that the product of P/E and P/B should not exceed 22.5
(should be positive).
This issue failed Grahams blended multiplier test.
However, threshold value, P/E*P/B <22.5 should be taken as arbitrary level.
Ratios do not tell us the whole story by itself. It is more useful to compare the
ratios of one company to other companies in the same industry.

LIMITATION OF THE ANALYSIS:

1. EPS calculation does not isolate other income and extra-ordinary

income.
2. Analysis does not cover earnings stability, dividend records, earnings
growth and futures earnings (or forward P/E ratio).
3. For future plans and prospects, read below reference.

REFERENCE:

http://www.pse.com.ph/resource/corpt/20 ... un2012.pdf

http://www.pse.com.ph/resource/corpt/20 ... ec2011.pdf