Chunghwa Telecom announced its highest dividend payout since 2017, with shareholders set to receive NT$5 (US$0.16) per share in cash dividends, representing a profit distribution ratio of 104.2%. The telecom giant will distribute approximately NT$38.79 billion (US$1.23 billion) to more than 300,000 shareholders.
The generous payout exceeds market expectations of around NT$4.8 per share and builds on Chairman Chih-Cheng Chien’s earlier hints of a “surprising” dividend announcement. The company has maintained its position as the industry’s earnings leader, achieving seven consecutive years of revenue and profit growth.
Unlike many listed companies that tap capital reserves for dividend payouts exceeding 100%, Chunghwa is using positive retirement fund gains to supplement the distribution beyond its earnings.
Chunghwa’s stock closed at NT$127.5 on February 26, offering a 3.92% dividend yield. The company’s market capitalization stands at NT$989.07 billion (US$31.4 billion), ranking eighth on Taiwan’s stock market.
Looking ahead, Chunghwa aims for an eighth consecutive year of growth in 2025, with Chairman Chien focusing on “AI enhancement” to push the company toward a trillion-dollar market value as it celebrates 20 years of privatization.
Meanwhile, competitors are also increasing their dividends. Far EasTone recently approved a NT$3.56 dividend (a six-year high), while Taiwan Mobile is expected to announce its dividend plan with projected earnings of NT$4.57 per share.
