Cathay Financial Holdings has declared a noteworthy cash dividend of NT$2 per common share, reflecting a payout rate of 61.7%. This decision, confirmed by the company’s board of directors today, positions Cathay Financial above the industry average payout rate of 59.9%. With a closing stock price of NT$50.5, the dividend yield reaches an impressive 4%, outpacing the industry’s average yield of 3.6%.
The financial conglomerate attributes this generous dividend policy to its robust profit growth across its financial holding operations and the strategic business development needs of its subsidiaries. Despite the significant cash dividends, Cathay Financial assures that key financial metrics, including the double leverage ratio and the group’s capital adequacy ratio (CAR), remain in a healthy range, underlining the company’s financial resilience and prudent management.
In 2023, Cathay Financial reported an after-tax profit of NT$51.5 billion, marking a 36% increase from the previous year, with an after-tax net profit per share (EPS) of NT$3.24. The company experienced a substantial boost in its net worth, which surged by NT$189.7 billion to NT$801.4 billion, largely due to favorable evaluations of financial assets and profitable contributions.
Cathay Financial’s commitment to delivering value to its shareholders through high dividend yields and maintaining robust financial health highlights its leadership position in the financial sector and sets a commendable benchmark for others in the industry.
