Daily Stock Analysis: PLDT Inc.

PLDT Inc. has the ticker symbol PHI and is a member of the communication services sector as a telecom services company. 

PLDT Inc. is the telecommunications carrier in the Philippines. 

The company operates the nation's most 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%.

As of December 31, 2020, it had 72,933,839 mobile broadband subscribers; 3,042,815 fixed-line subscribers; and 3,090,118 fixed wireless broadband subscribers. 

woman in red jacket holding white smartphone

Image Source: Unsplash

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

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

Three key data points gauge dividend equities or funds like PLDT Inc. (PHI):

(1) Price

(2) Dividends

(3) Returns

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

PHI Price

PLDT Inc.'s price per share closed at $25.96 Friday. One year ago its price was $22.86 Price per share has increased about 13.5% from the middle of last year's COVID market slump. 

Should PLDT Inc stock trade in the range of $23.00 to $33.00 this year, its recent $25.96 price might rise by $4.04 to reach $30.00 by April 19, 2022. My estimate is however $ 0.30 lower than the estimate from the analyst tracking the stock.

PHI Dividends

PLDT Inc most recently declared a semi-annual dividend, payable tomorrow April 20th, is $0.8219 which equates to $1.64 annually and yields 6.31% at Friday's $25.96 closing price. PLDT has paid variable dividends beginning quarterly in January 1985 to 2001 and renewed as semi-annually paid since May 2005, that is, the past 16 years

PHI Returns

Adding the $1.64 annual PHI anticipated dividend to my $4.04 price upside estimate shows a $5.68potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in PLDT Inc at $25.96 per share and we'd buy 39 shares of PLDT stock.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.26 per share.

Subtract that maybe $0.26 brokerage cost from my estimated $5.68 gross gain per share results in a net gain of $5.42 X 39 shares = $211.38 for a 21.1% net gain on a $1.012.44 investment.

Thus, PLDT Inc. (PHI) shows a possible 21.1% net gain including a 6.31% dividend yield. 

Over the next year at this time, a $1000 investment in PHI could generate $63.10 in cash dividends. And a single share bought at yesterday's closing price was about $26! So, if PHI is your kind of communication services telecom investment, their single share price is less than half the annual dividend income from $1,000 invested. This suggests now is the time to consider adding PLDT Inc (PHI) to your holdings.

All of the estimates above are speculation based on the past history of PLDT Inc. (PHI). Only time and money invested in this stock will determine its worth.

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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