Amid market volatility, PLDT stands out as dividend haven

MANILA, Philippines — Telco giant PLDT Inc. remains one of the most sought after stocks at the Philippine Stock Exchange, especially as its dividend policy stands out in times of uncertainties.

A strategy note from Macquarie Capital listed PLDT as one of the best dividend plays in 2025, at a time when investors are scrambling for safer picks at the height of a global trade conflict.

Macquarie said the benchmark Philippine Stock Exchange (PSE) index fell to a 52-week low of 5,822.85 on April 7, taking a beating from US President Donald Trump’s push to raise tariffs.

As a result, investors are shifting focus toward returns and stability. On uncertain times such as this, Macquarie said companies like PLDT tend to attract more buyers, as the consistency of its dividend payout offset the growing risks.

Macquarie maintained its “Outperform” rating for PLDT, citing an earlier forecast of 9.3 percent for dividends. This is one of the highest in the PSE, well above the average of 3.7 percent.

PLDT also set a target price of P1,800, representing a 47-percent upside from its closing price of P1,224 on April 7.

Macquarie said telcos stand out as dividend contributors and PLDT ranks among one of the highest payers, supported by an estimated 33-percent return on equity for 2025.

However, Macquarie reminded investors that PLDT may sustain lower income in 2025, dragged by its entry into the low-cost market, which could reduce its average revenue per user (ARPU).

“Revenues could also weaken on lower prepaid ARPU and lower quality customer base. Risk of dividends declining in tandem for full year 2025,” Macquarie said.

Still, the advice given to investors is to revisit high-value dividend names in the PSE if they want steady returns in the face of a shaky economy. Macquarie said PLDT remains one of PSE’s most attractive income plays.

PLDT grew its profit by 21 percent to P32.31 billion in 2024, from P26.61 billion in 2023, as the telco raked in more revenues from data and bIn line with this, the largest Philippine telco is also cutting spending to save up on cash, trimming capital expenditures to a range of P68 billion to P73 billion for 2025.