Contrary to most international equity markets, where high growth tech and telecom stocks often pay no dividend at all and low growth utility stocks tempt investors with a high dividend, Chunghwa Telecom is planning to offer investors an 8% dividend yield.
At this level market observers say that the yield will equate to 85% of net income, with the company further guaranteeing a dividend yield equating to a minimum of 50% of net profits in future years. For Chunghwa, this presents little in the way of a problem, since it has traditionally paid a high cash dividend to the government. Indeed, over the past three years the company...
