Dividend for TNB shareholders

Reported in The Edge (31/1/07) Tenaga Nasional Bhd (TNB) is now reviewing its dividend policy to reward shareholders. This is particularly so  with its rising spare cash so as to make this utility stock more appealing, especially to foreign investors. 

According to Chief executive officer Datuk Seri Che Khalib Mohamad Noh:-

·      when the company was doing well, there was no reason not to pay dividend.

·      TNB is now looking at  its dividend policy which is going to be TNB’s first ever dividend policy

·      TNB had hired a merchant bank to advise on the group’s dividend policy that would be announced when the group released its second quarter results, expected in April.

·      He noted that foreign investors preferred to invest in companies that had a “structured dividend policy.” 

Earlier in my articles, it’s not easy to shape up a dividend policy. Generally, investors prefer a company that at least has clear structured dividend policy rather than one which is erratic in paying dividend. An erratic unclear dividend pay out might occasionally confused investors as if management is not planning ahead .

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