Four state-owned financial firms in Taiwan to pay dividends next week, yields over 3%

Four major state-owned financial holding companies in Taiwan are preparing to distribute dividends next week, with all four offering cash yields exceeding 3%. This move is attracting investors seeking stable returns, often referred to as 'stock saving' investors.

The companies, including First Financial Holding (2892), Cooperative Financial Holding (5880), Hua Nan Financial Holding (2880), and Mega Financial Holding (2886), are set to begin their dividend distributions on August 11 and 13. Their ability to maintain high dividend payouts stems from strong profitability in the previous year. Notably, Mega Financial's cash dividend marks a historic high, while Hua Nan Financial's dividend is its most generous in the past decade.

Last year, all four companies reported impressive profits. Mega Financial led with a net profit of NT$41.7 billion, translating to an earnings per share (EPS) of NT$2.81, retaining its position as the most profitable state-owned financial holding company. First Financial followed with NT$30.7 billion in net profit (EPS NT$2.19), Hua Nan Financial with NT$23.1 billion (EPS NT$1.68), and Cooperative Financial with NT$19.8 billion (EPS NT$1.26). All achieved record profits.

In terms of dividends, Mega Financial will distribute NT$1.75 per share in cash, its highest ever. Hua Nan Financial will pay NT$1.35 in cash and NT$0.1 in stock, totaling NT$1.45, its highest in a decade. First Financial will distribute NT$1.3 per share entirely in cash for the first time, its second-highest ever. Cooperative Financial will distribute NT$0.8 in cash and NT$0.25 in stock, totaling NT$1.05.

As of August 7, the cash dividend yields for these four companies all surpassed 3%. First Financial, trading at NT$35.55, offered a yield of approximately 3.66%, the highest among the group. Mega Financial, at NT$50.9, yielded about 3.44%; Cooperative Financial, at NT$26.2, yielded around 3.05%; and Hua Nan Financial, at NT$44.4, yielded approximately 3.04%. The companies' robust profits in the first half of this year, with all setting new records for the period, further bolster investor confidence.