Board yet to decide on special dividend payout, says Top Glove

Board yet to decide on special dividend payout, says Top Glove
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KUALA LUMPUR (Oct 8): Top Glove Corp Bhd clarified today that its board has not decided on a special dividend payout. 

“The board has not decided on a special dividend payout as mentioned in the article by The Edge Markets. The board will make the necessary announcement to Bursa Malaysia should there be any decision on the special dividend,” said the group in a filing with the bourse. 

It also clarified that it had on Sept 23 announced the board’s decision to make a quarterly dividend payment for the financial year ending Aug 31, 2021.  

The board also previously decided to bring forward the final dividend entitlement and payment dates to Oct 20, 2020, and Nov 3, 2020, respectively to better plan its cash flow. 

In the same filing, the group also mentioned that the implementation of the Conditional Movement Control Order (CMCO) in Klang, effective Oct 9, will not affect its operations. 

“As Top Glove is in the essential product or service category, its business operations remain unaffected. Hence, there is no business or financial impact arising from the CMCO,” said the group. 

theedgemarkets.com reported yesterday that a special dividend is possible as Top Glove moves away from its existing semi-annual payout scheme, quoting a research note by UOB Kay Hian analyst Philip Wong. 

The analyst said should there be any special dividend, it would likely be for the third quarter of FY21. 

"Based on the company’s dividend payout policy of 50% and our projected earnings, the implied dividend yield for FY21 is 7.7%. For every 10% additional payout, the dividend yield increases by 1.6%. That said, dividend yields would moderate to 2.1% and 1.2% for FY22 and FY23 respectively,” the analyst said. 

Top Glove’s share price closed unchanged at RM8.80 today, giving a market capitalisation of RM72.03 billion. 

Read also:
Top Glove says special dividend possible as it shifts to quarterly payout

S Kanagaraju