Dividend Paying Stocks in the Philippine Stock Market

When looking for dividend paying stocks, it is not enough that you just look to the one that, well, pays dividend. The dividend amount should be, of course, high to maximize the return to your investment, and the dividend payment should be regular. As a dividend paying stock hunter, you should also make sure that the stock that you will buy has a potential to grow or increase its dividend payment rate.

We are aware that the rate of return to your investment is proportional to the risk involved, that is, the higher the risk, the higher the return. As an investor, we want to, as much as possible, minimize the risk involved in our investment.

Preferred Stocks
There are some, essentially, almost risk free stocks that you can buy in the stock market, these are the preferred stocks that pays regular dividend at a regular rate, and allows you to sell your share very close to your purchase price. But preferred stocks are not really a share of ownership of the company. It’s, more or less, a bond that pays you with a regular dividend for the money that you lent to the company. The potential of preferred stocks to increase their dividend rate is minimal. List of preferred stocks that are traded in the stock market can be found here: http://www.jcmiras.net/surge/p218.htm

Common Stocks
We have had a good discussion about preferred stocks here: http://www.jcmiras.net/surge/p218.htm. Our focus now is to find common stocks that are good in giving safe and reasonable return to your investment. My recommendation is as follow;

Company	Div Rate*	Risk Mitigation
Globe Telecom (GLO)	12.0%	As the 2nd largest telecom utility in the Philippines, Filipino’s can’t live without Globe’s product and services. Rates of product and services are not heavily regulated. Income is almost assured even with tight competition with PLDT.
PLDT (TEL)	8.03%	As the largest telecom utility in the Philippines, Filipino’s can’t live without PLDT’s product and services. Rates of product and services are not heavily regulated. Income is almost assured even with tight competition with Globe Telecom.
Centro Escolar University (CEU)	13.33%	One of the popular universities in the Philippines. Tuition fee is not heavily regulated. Its product, education, is obviously always in demand. Competition with other universities is not tough.
Far Eastern University (FEU)	4.0%	One of the popular universities in the Philippines. Tuition fee is not heavily regulated. Its product, education, is obviously always in demand. Competition with other universities is not tough.
Sunlife Financials Inc. (SLF)	5.3%	One of the top three insurance providers in Canada. Historically pays regular dividend, and I have trust to its Canadian Directors that they will continue the tradition. Dividend payment is in Canadian Dollar – sweet.
Manulife Financials Corp. (MFC)	4.49%	One of the top three insurance providers in Canada. Historically pays regular dividend, and I have trust to its Canadian Directors that they will continue the tradition. Dividend payment is in Canadian Dollar – sweet.
San Miguel Brewery (SMB)	6.61%	No questions ask, this is the only delicious beer in the Philippines. Filipinos can’t help drinking this beer even in recession, thus expect a continuous flow of beer, I mean, dividend.