BIZ BUZZ: Converge sets dividend policy

Investors who have been betting on the stocks of Converge ICT Solutions Inc. are about to receive their first ever cash dividends from the internet service provider that has been continuously growing since going public in October 2020.

Last week, the listed company approved the declaration of special cash dividends of P0.18 per common share or P1.31 billion in total. These will be sourced from the unrestricted retained earnings in 2023.

The record date is Sept. 24 while the payment will be on Oct. 10. This is earlier than the 2025 target dividend declaration the company set previously.

The fiber broadband provider also approved its inaugural dividend policy: a payout rate of 25 percent to 30 percent of net income based on latest audited financial statements.

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“With the continued strength of the earnings growth and operating cash flow generation at Converge, we remain well positioned to support the dividend policy going forward,” Converge president and co-founder Maria Grace Uy.