the Outsider - PSE Points to Ponder

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Will the Government Finally Bend the Curve on MER’s 19% Dividend CAGR?

After six years of rapid payout growth, the Philippine utility’s earnings-based dividend framework faces a consequential question: Who should bear the cost of electricity that never reaches the meter? For much of this decade, Manila Electric Company has offered shareholders something increasingly scarce: a dividend that has not merely held steady but climbed with remarkable consistency. From 2020 through 2026, Meralco’s cash distributions increased from ₱9.984 to ₱28.430 per share , based on dividends paid within each calendar year. That works out to compound annual growth of roughly 19 percent —an unusually strong record for a mature electric utility, a category typically prized for stability rather than rapid expansion. The progression has been almost uninterrupted. Annual dividends rose to ₱12.881 per share in 2021, ₱16.032 in 2022, ₱19.548 in 2023, ₱21.530 in 2024, and ₱25.064 in 2025. The two payments scheduled for 2026—₱16.672 in April and ₱11.758 in September—bring the calendar-...

BDO’s 1H 2026 Profits Barely Grew. Its Spending on Workers, Security, Janitorial and Messenger Services—and Taxes—Did.

The Philippine banking giant’s core interest earnings increased in the first half of 2026. Much of that additional value, however, flowed to employees, service providers and the government rather than landing on the bottom line. At first glance, BDO Unibank’s first-half results appeared uneventful. The country’s largest bank reported ₱40.85 billion in net profit for the six months ended June 30, barely changed from ₱40.76 billion a year earlier. Earnings attributable to shareholders of the parent bank increased just 0.3 percent, while basic earnings per share edged up by one cent, to ₱7.56. But beneath that nearly static bottom line, a more dynamic redistribution of economic value was taking place. BDO’s net interest income—the difference between what it earned from loans and investments and what it paid to depositors and other creditors—rose 10.6 percent, to ₱108.51 billion. Even after the bank set aside substantially more money for possible credit losses, net interest inc...

Century Properties Pulls Back on Dividends as Property Sales Slow

The Philippine developer raised its regular payout but omitted last year’s special dividend, reducing the total cash return to shareholders as debt and financing costs climb. Century Properties Group is returning more of its annual profit to shareholders through its regular dividend this year. But investors will receive less cash overall. The property developer declared a regular dividend of ₱0.047837 a share on July 17, an increase of nearly 14 percent from last year’s regular payment. Missing from the announcement, however, was the special dividend that supplemented the company’s payout in 2025. Unless the board declares one later this year, the omission will reduce the company’s total common dividend by about 9 percent , even as Century Properties presents the new distribution as evidence of financial resilience. Last year, Century Properties paid a regular dividend of ₱0.042114 a share and a special dividend of ₱0.010529 , for a combined distribution of ₱0.052643 a share . T...

Concepcion Appliance Assembler CIC’s EPS Collapses as Consumer Slowdown Bites

Commercial and service growth helped steady revenue, but weaker appliance volumes, rising inventories and slower collections squeezed margins and cash flow. Concepcion Industrial Corp. entered 2026 carrying more goods into a market that was buying fewer. The Philippine appliance and building-systems company reported that sales of goods fell 5% to ₱8.93 billion in the first half, as softer demand for residential air conditioners and selected refrigeration products weighed on its Consumer business. Yet CIC’s inventory climbed nearly 29% from the end of December to ₱4.10 billion , leaving more of the company’s cash tied up in products, components and shipments that had yet to reach customers. That divergence—lower merchandise sales alongside higher inventory—was one part of a broader squeeze on CIC. Its Commercial and service operations continued to grow, helping limit the decline in consolidated revenue to 2%. But those activities generally took longer to bill and collect than reta...

Ayala Chooses Ayala Land Over Itself, Deepening Its Bet on Real Estate

The conglomerate has avoided repurchasing its own shares in 2026 and instead committed ₱5 billion to its battered property subsidiary—potentially recycling ALI dividends into an even larger real-estate stake. Ayala Corporation is making an unusually direct statement about where it sees the best value inside its sprawling portfolio. The Philippine conglomerate has earmarked ₱5 billion to acquire additional shares of Ayala Land , its listed property subsidiary, and has already deployed approximately ₱971 million through July 21. At the same time, Ayala has avoided repurchasing its own shares in 2026, directing its market support toward a subsidiary whose stock remains battered despite a recent rebound. The choice amounts to a capital-allocation verdict. Ayala could use its available funds to reduce the number of Ayala Corporation shares outstanding, distribute more cash, pay down debt, or invest in its newer businesses. Instead, the parent is increasing its exposure to a company i...