Pag-IBIG eyes 10% dividends in 10 years

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG, is targeting a 10-percent dividend rate by 2035 to boost financial security among its members.

Pag-IBIG CEO Marilene Acosta said the agency is aiming for a double-digit dividend rate or bonus payout over the next 10 years as it moves to strengthen its investment portfolio.

“If we can reach that earlier, the better. A higher dividend means faster growth of our members’ savings,” Acosta said.

Last year, Pag-IBIG reported P55.65 billion in total dividends, marking the largest payout in the agency’s 44-year history.

This was equivalent to 82.71 percent of Pag-IBIG’s net income, exceeding the 70 percent dividend requirement by law.

The dividend rates for the regular savings climbed to 6.6 percent, while its Modified Pag-IBIG 2 Savings rate rose to 7.1 percent.

“Our targets would give stronger financial security and boost the financial resilience of our members,” Acosta said.

“This will also strengthen Pag-IBIG’s reputation as among the best institutions in terms of savings in the country,” she said.

The Pag-IBIG chief said the agency would ramp up its investment portfolio to ensure better returns.

“We will widen our source of income to balance our plans for higher dividends and our long-term growth,” Acosta said.

Currently, Pag-IBIG has 16.58 million active members.