Semirara Mining and Power Corp. (SCC) announced a special cash dividend amounting to P14.88 billion. This is equivalent to P3.50 per share for eligible shareholders. <\/p>\n\n\n\n
The generous payout comes in addition to the regular (P1.80 per share) and special (P1.70 per share) cash dividends disbursed back in April. The ex-
dividend date is scheduled for October 20, with the dividend payments set to be paid on November 8.<\/p>\n\n\n\n
Remarkably, SCC is on track to make it\u2019s highest-ever dividend payout to shareholders in 2023, amounting to a staggering P29.75 billion, marking a historic milestone for the company.<\/p>\n\n\n\n
Our View: <\/strong>SCC’s 2023 earnings may not replicate the previous year’s remarkable performance. Nevertheless, the company’s steadfast commitment to providing attractive cash dividends remains unwavering. <\/p>\n\n\n\n SCC has a substantial reserve of P27.5 billion in cash and cash equivalents, complemented by retained earnings of P58.5 billion for the first half of 2023. This mirrors the company’s earlier declaration during their earnings call, where they expressed their intent to allocate surplus cash for dividend distributions. <\/p>\n\n\n\n It is evident that they have faithfully executed this commitment. This underscores SCC’s enduring dedication to rewarding its shareholders with substantial returns. SCC’s full-year dividend payout of P7.00 per share translates to an impressive dividend yield of 19.1%, based on the closing price of P36.65.<\/p>\n\n\n\n Looking ahead, there is growing optimism surrounding SCC’s future prospects, given the apparent stabilization of coal prices in the short term. The anticipated recovery of China’s economy is expected to drive increased demand for coal, further fortifying SCC’s position. <\/p>\n\n\n\n Moreover, with the impending winter season, coal prices are poised to rebound, offering a favorable near-term outlook for the commodity. Lastly, we anticipate the dividends from SCC to have a positive trickle-down effect on its parent firm, DMCI Holdings Inc. (DMC). DMC also issued a special cash dividend of P0.72 in October of the previous year.<\/p>\n\n\n\n