Converge unveils maiden dividend policy amid strong growth
To ensure profits are equitably shared with shareholders, Converge has introduced its inaugural dividend policy ahead of the original schedule.
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Daily TribuneTo ensure profits are equitably shared with shareholders, Converge has introduced its inaugural dividend policy ahead of the original schedule.
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(Image from Converge ICT / Website)
Fiber broadband and technology provider Converge ICT Solutions Inc. has consistently posted strong financial gains in recent years.
To ensure these profits are equitably shared with shareholders, the company has introduced its inaugural dividend policy ahead of the original schedule.
Converge informed the stock exchange on Wednesday that the policy, approved by its Board of Directors last Tuesday, aims to maintain a 20 to 30 percent payout ratio based on the net income from its latest audited financial statements.
Converge President and Co-Founder Maria Grace Uy emphasized that the new policy highlights the company’s dedication to delivering value to shareholders while continuing to invest in business growth.
"With the continued strength of the earnings growth and operating cash flow generation at Converge, we remain well positioned to support the dividend policy going forward," Uy said.
Following a strong first half of the year and with future cash needs for expansion in mind, Converge declared a special cash dividend of P1.31 billion, or P0.18 per share.
The special cash dividend is payable on 10 October, to stockholders of record as of 24 September—marking the company’s first dividend declaration since its initial public offering.
For Converge CEO and Co-Founder Dennis Anthony Uy, the improved financial performance encourages the management to drive further growth.
“We are truly grateful to all shareholders who have believed in our mission to provide world-class connectivity services to the Filipino people,” he said.
Under its dividend policy, the company’s Board has full discretion to determine the amount, type, and payment date of dividends, considering several factors such as earnings, cash flow, return on equity, and retained earnings.
Other considerations include the company’s financial results, expected performance, capital expenditures, investment programs, restrictions from financing arrangements, debt service requirements, and any other factors the Board deems relevant.
The Board may also modify the policy, including the payout ratio, at any time.
Converge further stated that, in line with the G20/OECD Principles of Corporate Governance 2023 regarding shareholders' rights and equitable treatment, part of its profits will be distributed to common equity shareholders.
Converge’s net income during the first half of the year clocked in at P5.3 billion after consolidated revenues rose to P19.5 billion.
