Dividend Policy


The Company returns to its shareholders, dividends equivalent to 75%-90% of its prior year's core net income.

Dividends declared by the Company on its stocks are payable in cash or in additional shares of stock. As a policy and as much as practicable, Globe observes a 30-day period for the payment of dividends to shareholders from the declaration date of such dividends.

The Board of Directors (BOD) of Globe Telecom regularly reviews the dividend policy, including the frequency of its distribution, taking into account the Company's operating results, cash flows, debt covenants, capital expenditure levels and liquidity.

The payment of dividends in the future will depend upon the earnings, cash flow and financial condition of the Company and other factors.

On November 6, 2009, the Board of Directors amended the dividend payment rate from 75% to a range of 75% - 90% of prior year's net income.

On November 8, 2011, the Board of Directors amended the Company's dividend policy to be based on core instead of reported net income. Pay-out range remains at 75% to 90%. This is to ensure that dividends will remain sustainable and yields competitive despite the expected near-term decline in net income that would result from the accelerated depreciation charges related to assets that will be decommissioned as part of the Company's network and IT transformation programs. As currently defined, core net income excludes all foreign exchange, mark-to-market gains and losses, as well as non-recurring items.

On 6 August 2013, the Board of Directors approved the proposed change in the frequency of the cash dividend distribution from semi-annual to quarterly beginning first quarter of 2014. The quarterly cash dividends will continue to be based on the policy of 75%-90% of prior year's core net income. The amended frequency in the payouts will provide the Company with the better cash planning and liquidity management and at the same time ensure a more consistent dividend distribution to the shareholders.

On 10 December 2013, The Company announced that the quarterly cash dividend distribution will be implemented beginning in the third quarter of 2014 instead of the first quarter of 2014.

Common Shares

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Non-voting preferred shares

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