Dialog proposes 1 treasury share for 50 held

Dialog proposes 1 treasury share for 50 held

Tags: Dialog | divbidend | treasury share

Written by Joseph Chin
Wednesday, 07 October 2009 18:32

KUALA LUMPUR: DIALOG GROUP BHD [] has declared a proposed special share dividend of one treasury share for every 50 shares held, amounting to 27.71 million treasury shares, to be distributed for the financial year ended June 30, 2009.

Dialog said on Wednesday, Oct 7 the proposed special share dividend is to commemorate the 25-year anniversary of incorporation of Dialog group of companies. The entitlement date has yet to be fixed.

"Together with cash dividends (interim and proposed final) of 36% less 25% tax, total gross dividend rate for FY2009 is 57.6%," it said, adding the dividend payout ratio for FY2009 is 74%.

Based on Dialog's five-day volume weighted average share price of RM1.2424 as at Oct 6, the gross dividend yield is 4.6%.

This is the second time the company is distributing share dividend. The first time was when it distributed one treasury share for every 50 shares held for FY ended June 30, 2006 to commemorate its 10-year anniversary of listing on Bursa Malaysia Securities Bhd.

The proposed special share dividend and the proposed final cash dividend of 24% less 25% tax are subject to shareholders’ approvals at the forthcoming AGM.