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Truly Rich Club Stock Tip: LaFarge Republic Inc & Unexpected Dividend

At market price of 11.60 per share, the Php0.45 dividend is already a 3.88% return (not yet net of tax). So what? Well this is among the biggest dividends I’ve received percent wise. The usual I get is 1% to 2% of stock price.

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I think it was just two weeks ago when Truly Rich Club included LaFarge Republic Inc (LRI) in their model portfolio, with buy below price of Php12.68. Being a major cement manufacturer, it is expected that LRI shall benefit from the government’s thrust of PPPs and infrastructure. Add to that the booming real estate and construction industry. Plus the construction and renovation needs of normal consumers. A few days after that, with some spare cash, I invested in a few lots. This was in the middle of a market correction so as of this writing, I’m at 5% paper loss (which I’m ready for). But it doesn’t matter. The correction should be temporary. Plus some more good news.

Dividends!

I just found out today that LRI has recently declared dividends (didn’t check when and didn’t expect any when I bought some), with ex-date of tomorrow (already!), 11Jun2013. Amount is Php0.45 per share which is a sum of Php0.12 regular dividends (same throughout the years), then Php0.33 special dividends. Company has been giving dividends annually since 2007. I hope it continues.

At market price of 11.60 per share, the Php0.45 dividend is already a 3.88% return (not yet net of tax). So what? Well this is among the biggest dividends I’ve received percent wise. The usual I get is 1% to 2% of stock price. Not complaining though. But 3.88% is still a high number, a generous profit-sharing from LRI. And we’re not even talking about capital appreciation here which should follow suit once market and stock recovers from its recent correction.
So I’d say LRI was a good call for Truly Rich Club. As well as MPI which I also have. They recently put FPH on hold due to a recent incident in one if its plants. But given COL Financial confidence, I added more FPH.
Other companies in my portfolio (I have 15 at the moment), not necessarily part of TRC recommendations, and their upcoming dividend payouts are as follows:
  • SMPH – payout date 11Jun (0.27/sh, 1.5%)
  • FPH – payout date 11Jun (P2/sh, 2.1%)
  • SMDC – payout date 20Jun, then SMPH tender offer 04Jul
    (0.053/sh, 0.63%)
  • LRI – ex-date 11Jun, payout 03Jul
  • BDO – sharing it’s huge gains, ex-date 19Jun
    (Php1.5/sh, 1.72%)
  • JFC – just finished payout last week, thank you!
*Note: Returns here were computed based on today’s prices but I would think the more accurate way to compute it is based on ex-date since it’s the cut-off for those included in payout. Or if you wish based on your purchase price so that the ROI is relative to your investment amount. I’m just too lazy to back track the share prices at those dates. But you get the point.
Keep them coming! A good source of passive income and relief in these times of technical correction!
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About Geri (351 Articles)
Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

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