SMC Preferred Shares (SMC2L, SMC2N, SMC2O)

[paddymcginty]

Info
https://www.sanmiguel.com.ph/storag...Series_2_Preferred_Shares_(2023-09-12)_VF.pdf

• Series 2-L (five (5) years and three (3) month) with a dividend rate of 7.9145% p.a.
• Series 2-N (eight (8) years) with a dividend rate of 8.3466% p.a.
• Series 2-O (ten (10) years) with a dividend rate of 8.5936% p.a.

 

[jvb]

@paddymcginty may early call ba yung pref na ito? Meaning if bumaba ang rate they will redeem na agad?

 

[married1988]

@jvb Dividend or rate is fixed. Company redeems when market rate is lower than the fixed rate since they refinance this at a cheaper cost

 

[ostinoss]

@paddymcginty Ano minimum placement? Ano net?

 

[paddymcginty]

@ostinoss 500 shares minimum x 75 PHP per share = 37,500 PHP sa COL, thereafter, in multiples of 100 shares

Net is after 10% tax

 

[temirlan]

@paddymcginty Can confirm with FMS na same mechanics

 

[temirlan]

@paddymcginty BVAL today and yesterday from https://www.pds.com.ph/index.html?page_id=56432.html

Tenor BVAL Rate Today BVAL Rate Previous Day
1M 6.0474 5.9791
3M 6.1845 6.1575
6M 6.4582 6.4533
1Y 6.5917 6.6084
2Y 6.4822 6.4694
3Y 6.5022 6.4961
4Y 6.5184 6.5183
5Y 6.5413 6.5475
7Y 6.6209 6.6359
10Y 6.7416 6.7480
20Y 6.8905 6.9230
25Y 6.8850 6.9184

 

[jamief1990]

@paddymcginty It is good ... kaso we have MP2.

So parang wla din advantage lalo na if you do not have a lot of money.

 

[resjudicata]

@jamief1990 It has a higher return than MP2 after taxes

You can sell your shares for early exit if needed

No advantages huh?

 

[temirlan]

@resjudicata

You can sell your shares for early exit if needed

if there is a willing buyer [other than SMC itself]?

 

[married1988]

@temirlan Illiquid ang mga pref shares pero yup may willing na buyer yan usually

 

[resjudicata]

@paddymcginty Looks good, given how poorly the stock is performing otherwise.

 

[redfox53]

@paddymcginty Anyone here who already made the computation on how much is the dividend return net of taxes and other charges?

 

[jsphalford11]

@redfox53 10% lang tax for preferred shares so just multiply the gross dividends by 0.90.

 

[jsphalford11]

This is if you're getting the preferred shares from your stock brokerage ah. Different pa if thru trust or IMA account, may additional charge depending on your arrangement with the bank.

 

[temirlan]

@redfox53

We need US$ [277.524, 301.33 ] K / PHP [15.516, 16.847] million to receive post-tax monthly-ized PHP100,000.00/USD 1,790 income.

https://twitter.com/i/web/status/1722868757008421342

Also caveat:

https://www.reddit.com/r/phinvest/comments/17ruxlg/_/k8m1z9s

 

[artistec]

@paddymcginty How to sign up? I have firstmetro but I could not find it

 

[justinagomez]

@artistec You have to click Account then Corporate Actions.

Source: https://help.firstmetrosec.com.ph/hc/en-us/articles/900003022986

 

[vivalafleur]

@paddymcginty First cash dividend payouts of these series will be given on April 4th it has been announced.