Megawide declares P0.50 special dividend

Megawide [MWIDE 3.94 23.1%; 898% avgVol] [link] declared a P0.50/share special cash dividend out of its FY22 unrestricted retained earnings.

The total dividend amounts to P1.0 billion in cash, and is payable on June 16 to MWIDE shareholders of record as of May 26.

The dividend was declared as a result of a special meeting of MWIDE’s board of directors. This is the second P0.50/share special dividend that MWIDE has declared to common shares out of its FY22 unrestricted retained earnings.

MB BOTTOM-LINE

The stock went bananas (+23%) after the dividend was declared, and social media was filled with shock and surprise for the unexpected second special dividend. The pump in price reached about where it got to the last time it announced a special dividend back in February.

Still, looking at a 3-year chart of MWIDE, it’s hard not to notice that these periodic peaks are followed by periods of lower lows.

MWIDE had a lot of cash at the end of FY22 (around P15 billion) because it had just received a P7.2 billion cash payment from the Aboitiz Group for its airport interests, so maybe this is just a little sale bonus. Didn’t stop socmed from speculating wildly, though!

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