Taishin Financial to Distribute NTD 0.9 Dividend, Offering a 5.8% Yield
9 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/07/combined-hair-replacement/
The board of directors at Taishin Financial has approved the profit distribution plan for 2024, with all dividends to be paid as cash. Following the merger and share exchange between Taishin and Sinopac (Taiwan New Sinopac), shareholders will receive a dividend of NT$0.9 per ordinary share. Based on today's closing price of NT$15.6 for Taishin Financial, this represents an annualized yield rate of approximately 5.8%, the highest among financial holding companies currently announcing dividends.
Taishin Financial stated that due to receiving approval from the FSC (Financial Supervisory Commission) by March 31st and setting July 24th as the merger benchmark date, they will determine special share dividend entitlement dates prior to this date for shares involved in the merger process. Dividend entitlements for ordinary shareholders will be determined after completion of the merger.
The Taishin-Sinopac merger was approved by the FSC on March 31st. Lin Wei-Chun (林維俊), CEO of Taishin Financial Group, noted that post-consolidation there will be approximately 249 billion shares in circulation. Considering share expansion and investor feedback—particularly from foreign shareholders who prefer cash dividends—the decision was made to distribute all profits as cash dividends.
The board has set a dividend payout rate for ordinary shares at NT$0.9 per share, with an estimated total of 248.6 billion outstanding ordinary shares after consolidation. Lin Wei-Chun explained that both Taishin and Sinopac shareholders should receive their dividends by August or early September due to July 24th being the merger benchmark date.
Based on today's closing price of NT$15.6 per share, a dividend payout of NT$0.9 results in an annualized yield rate of approximately 5.8%, currently leading among financial holding companies that have announced dividends. Using Taishin’s proposed exchange ratio (exchanging 0.672 ordinary shares plus 0.175 preferred shares for one Sinopac share), each Sinopac shareholder would receive roughly NT$0.6048 per share, translating to a yield rate of approximately 5.4% based on the closing price of Sinopac at NT$11.25.
Lin emphasized that shareholders in New Century Financial will also be entitled to an additional dividend from their preferred shares after three years—approximately NT$0.675 per share, bringing total dividends received over this period to around NT$1.84 per original Sinopac ordinary share.
While considering competitiveness, Lin stressed the decision to distribute a dividend of NT$0.9 allows for maintaining future distribution capabilities; however, profit allocation is ultimately decided by the board and should consider capital requirements for financial holding companies moving forward with sustainable dividends policies in mind. Currently, Taishin Financial has approximately 4.4 million shareholders while New Century Financial has around 3.8 million.
(Lead image source: Taishin Financial)
Taishin Financial stated that due to receiving approval from the FSC (Financial Supervisory Commission) by March 31st and setting July 24th as the merger benchmark date, they will determine special share dividend entitlement dates prior to this date for shares involved in the merger process. Dividend entitlements for ordinary shareholders will be determined after completion of the merger.
The Taishin-Sinopac merger was approved by the FSC on March 31st. Lin Wei-Chun (林維俊), CEO of Taishin Financial Group, noted that post-consolidation there will be approximately 249 billion shares in circulation. Considering share expansion and investor feedback—particularly from foreign shareholders who prefer cash dividends—the decision was made to distribute all profits as cash dividends.
The board has set a dividend payout rate for ordinary shares at NT$0.9 per share, with an estimated total of 248.6 billion outstanding ordinary shares after consolidation. Lin Wei-Chun explained that both Taishin and Sinopac shareholders should receive their dividends by August or early September due to July 24th being the merger benchmark date.
Based on today's closing price of NT$15.6 per share, a dividend payout of NT$0.9 results in an annualized yield rate of approximately 5.8%, currently leading among financial holding companies that have announced dividends. Using Taishin’s proposed exchange ratio (exchanging 0.672 ordinary shares plus 0.175 preferred shares for one Sinopac share), each Sinopac shareholder would receive roughly NT$0.6048 per share, translating to a yield rate of approximately 5.4% based on the closing price of Sinopac at NT$11.25.
Lin emphasized that shareholders in New Century Financial will also be entitled to an additional dividend from their preferred shares after three years—approximately NT$0.675 per share, bringing total dividends received over this period to around NT$1.84 per original Sinopac ordinary share.
While considering competitiveness, Lin stressed the decision to distribute a dividend of NT$0.9 allows for maintaining future distribution capabilities; however, profit allocation is ultimately decided by the board and should consider capital requirements for financial holding companies moving forward with sustainable dividends policies in mind. Currently, Taishin Financial has approximately 4.4 million shareholders while New Century Financial has around 3.8 million.
(Lead image source: Taishin Financial)