Megawide increases maximum potential dividend payout

Megawide [MWIDE 3.30 down 2.9%; 295% avgVol] [link] said its Board of Directors, in a meeting on 19 September 2025, approved an increase in the company’s maximum allowable cash dividend policy to 50% of prior-year net income from the previous 30%. The adjustment comes as the company expects to exceed last year’s earnings, supported by its infrastructure, real estate, and transport businesses. MWIDE reported a consolidated net income of P436 million in the first half of 2025, already equivalent to 81% of its full-year 2024 net income. Figures showed construction operations contributed P7.3 billion and accounted for 85% of the company’s total consolidated revenues.

 MB BOTTOM-LINE:  MWIDE’s stock has basically gone vertical over the past two weeks on massive volume. It’s up 60%. That’s a big deal for a company that was worth P4 billion at the start of the month, and which is now worth P6.5 billion. But why though? MWIDE’s potential earnings were no secret. They’ve been aggressively shifting things up behind the scenes. Perhaps it was the target prices put out by First Metro and other analysts that expected to see MWIDE trade at P4.50/share on news that its profit would triple by 2027. I don’t know. I think the MWIDE team is great, and I have a lot of respect for the team’s execution across all of its infrastructure projects, whether that be airports or solar power plants. But this feels odd to me. I feel like there’s a lot more to the story. Raising the dividend cap could be read as a great sign of things to come, or it could be read as widening the pipe to get money out of the company quicker. I’m not saying it’s the latter, but I’m not assuming it’s the former, either. I just don’t know.

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