Taipei--Morris Chang (???), chairman of contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, ???), is expected to pocket NT$875 million (US$29.06 million) in cash dividends issued by the company after shareholders approved a dividend proposal Thursday.
Under the approved dividend plan, the world's largest pure wafer foundry operator will issue NT$7 in cash dividend per share for its 2016 earnings per share of NT$12.89. Chang, who currently owns 125 million TSMC shares, or a 0.48 percent stake, will receive NT$875 million.
The NT$7 cash dividend is the highest level TSMC has issued for each share in the company's history, up from NT$6 for its 2016 earnings. The latest payout ratio hit 54.31 percent.
It is the third consecutive year in which TSMC has raised its cash dividend per share.
In 2016, TSMC posted a record high net profit of NT$334.25 billion, up 9 percent from a year earlier, largely on the back of global solid demand for mobile devices, while its consolidated sales also hit a new high of NT$947.94 billion, up 12.4 percent year-on-year.
The National Development Fund under the Executive Yuan, one of the top 10 shareholders of TSMC, which owns about 1.65 billion shares or a 6.38 percent stake in the chip maker, is expected to receive NT$11.58 billion in cash dividends.
TSMC is scheduled to go ex-dividend on June 26, and will issue a total of NT$167.5 billion in cash dividends afterward.
Since foreign institutional investors hold an 80 percent stake in TSMC, which is one of the most-favored by foreign investors, the majority of cash dividends will go to foreign investors. As a result, Chang has urged local investors to invest in TSMC in a bid to share more of the company's earnings.
Chang expressed faith in TSMC in an annual general meeting held Thursday, saying the company is expected to have another good year in 2017 after posting a record high in earnings a year earlier. He said that TSMC's sales are estimated to grow 5 percent-10 percent per year by 2020 to outperform the global semiconductor industry.
Although he will receive large cash dividends, Chang will take only fourth place in cash dividend income as an individual shareholder of a listed company in the local equity market for 2016.
Terry Gou (???), chairman of Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads, is expected to receive the largest cash dividend of about NT$7.3 billion from his company on a proposal to issue NT$4.5 in cash dividend per share to its shareholders for 2016.
Barry Lam (???), chairman of contract notebook computer maker Quanta Computer Inc. (??), came in second, as he is expected to receive about NT$1.46 billion in cash dividends from his company.
Source: Focus Taiwan News Channel