Current Analysis: PLDT

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PLDT Inc. (PHI) is a telecommunications carrier in the Philippines. The company operates the nation's extensive fixed-line network and holds more than half of the market share in the domestic wireless space.

First Pacific, a Hong Kong-based investment and management company specializing in consumer and telecommunication businesses, owns about 26% of PLDT, while two subsidiaries of Nippon Telegraph and Telephone jointly own about 21%.

The company was formerly known as Philippine Long Distance Telephone Company and changed its name to PLDT Inc. in July 2016.

PLDT Inc. was incorporated in 1928 and is headquartered in Makati City, the Philippines.

Three key data points gauge

PLDT Inc. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

PHI Price

Over the past year, PHI share price fell 6.77% from $24.36 to $22.71 as of Tuesday’s market close.

If PHI trades in the range of $19 to $25 this next year, its recent $22.71 share price might rise to $24.30 by next year. Of course, PHIs price could drop about the same $1.59 estimated amount or more.

My annual upside estimate of $1.59 however, is $0.09 less than the average one-year price upside over the past four years.

PHI Dividend

PLDT has paid variable semi-annual dividends since October 1989. PLDT’s recent SA dividend of $0.86 was declared on August 4th to shareholders of record on August 15th. The payout was made on September 22nd.

A forward-looking $1.94 annual dividend yields 8.54% at Tuesday’s $22.71 share price.

PHI Returns

To put it all together, add PLDT Inc.’s estimated annual dividend of $1.94 to the estimated price upside of $1.59 to find a $3.53 gross gain.

At Tuesday’s $22.71 share price, a little over $1000 would buy 44 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about  $0.23 per share.

Subtracting that likely $0.23 brokerage cost from the $3.53 gross gain produces a net gain of $3.30 X 44 shares = $145.20 for a 14.5% estimated net gain.

You might choose to pounce on PLDT Inc. It is a 96-year-old dividend-paying Manilla-based telecom. Furthermore, the estimated $85.40 of annual dividend income from $1k invested is over 3.75 times greater than PHI’s recent $15.00 single share price.

The exact track of PLDT Inc’s ongoing future price and dividend will be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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