{"id":332776,"date":"2025-06-05T01:21:30","date_gmt":"2025-06-04T17:21:30","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332776"},"modified":"2025-06-05T01:21:32","modified_gmt":"2025-06-04T17:21:32","slug":"commentary-yield-of-ayala-corp-preferred-shares-too-low","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/commentary-yield-of-ayala-corp-preferred-shares-too-low\/","title":{"rendered":"Commentary: Yield of Ayala Corp. Preferred Shares ‘too low’"},"content":{"rendered":"\n

AC offers 5-Year preferreds with 6.2903% yield<\/strong><\/p>\n\n\n\n

Ayala Corp. (AC) is offering preferred series with a dividend yield of 6.2903% and an optional redemption on the 5th listing anniversary. The offer runs from June 2 to June 9, with tentative listing date on June 19.<\/p>\n\n\n\n

Yield is too low<\/strong><\/p>\n\n\n\n

ACPB4\u2019s dividend yield is only 39.5bps (0.395%) higher than the current yield on 5-year Philippine government bonds, and ranks the lowest among Main Board preferred shares with redemption dates between 2028 and 2030. Perhaps this is the typically Ayala premium at work, and it is meant to reflect the company\u2019s financial health and long-term stability. To illustrate this, AC had a net debt-to-equity ratio of 1.06 as of end-1Q25, which is much lower than PCOR\u2019s 2.05 and SMC\u2019s 1.62.<\/p>\n\n\n\n

A viable better-yielding alternative<\/strong><\/p>\n\n\n\n

Instead of subscribing to the ACPB4 offer, we would rather recommend dividend yield chasers to buy ACENB on the board. At its last traded price of P1,056 per share, it offers a much more attractive dividend yield of 7.5758% and it is also controlled by AC, so it still benefits from the perceived stability that comes with the Ayala name. ACEN also has a much lower net debt-to-equity ratio than its parent, which stood at 0.72.<\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1124,11],"tags":[],"class_list":["post-332776","post","type-post","status-publish","format-standard","hentry","category-commentaries-special-reports","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/332776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=332776"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/332776\/revisions"}],"predecessor-version":[{"id":332778,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/332776\/revisions\/332778"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=332776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=332776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=332776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}