It has been three years since fresh leadership was integrated into the upper echelons of LT Group Inc., a publicly listed conglomerate that has since earned a reputation for delivering exceptional dividends to its shareholders.
Abacus Securities Corp, a stockbroker, states that LT Group guarantees a consistent annual return for investors due to its wide range of investments, which span various sectors such as industrials, lending, and consumer-related ventures.
As of December in the previous year, Abacus’ examination of the leading 20 companies that pay dividends indicated that LT Group held the top position. Among these firms, only two were found to have a dividend yield as high as 15.47 percent, and LT Group was one of them.
Even though the price of the stock has risen by almost 20% as of December from its lowest point in the past year, it remains appealing due to the likelihood of consistent payouts for the current year. Abacus commented that the anticipation of the group’s business divisions continuing to rebound in 2023 contributes to this attractiveness.
“This month, the stockbroker would emphasize to investors that they should consider adding LTG to their portfolio, as it stands out as one of the most inexpensive conglomerates based on valuations. Additionally, those seeking dividends should take this stock into account.”
In the previous year, LT Group announced a total of P9.74 billion in dividends, which is the same as P0.90 per share. These dividends were distributed in two parts: firstly, a regular dividend of P0.15 per share along with a special dividend declared in March, and secondly, another special dividend of P0.30 per share declared in September.
Throughout these events, Lucio “Hun Hun” Tan III, the Chief Operating Officer of LT Group, played a supportive role in guiding the conglomerate established by his grandfather, Lucio Tan Sr., who is ranked as the 11th wealthiest individual in the Philippines by Forbes Magazine. He collaborated in this effort with his uncle Michael Tan, who currently holds the position of company president.
The son of the deceased Lucio “Bong” Tan Jr., known as the younger Tan, became a part of LT Group following his father’s unexpected passing in 2019. In the latter part of the same year, Lucio III took on the position of president at Tanduay Rum Distillers Inc., a subsidiary of LT Group, and also became a director within the LT Group organization.
As of 2022, Lucio III has taken on the role of Chief Operating Officer at LT Group, a position that was previously held by Michael while he was also serving as the company president. As per the plan outlined last year, Lucio III is scheduled to become the president by April, as part of the group’s strategy.
Lucio III earned his electrical engineering degree from Stanford University and graduated in the highest five percent of his class, receiving the Frederick Emmons Terman Scholarship. Additionally, he possesses a Master of Science in Computer Science.
Before becoming part of the family enterprise, Lucio III had experience as a software engineer at Lyft, a ride-sharing company based in San Francisco, California.
The present-day LT Group, as we know it, was established in 2012. This happened as the Lucio Tan Group of Companies brought together its various ventures under the entity that was formerly known as Tanduay Holdings Inc.
After being renamed as LT Group Inc., Michael has taken on the role of president. LT Group holds interests in the distilled spirits sector through its subsidiary, Tanduay Holdings. Tanduay Holdings holds a significant 30.7 percent market share in the Philippines, primarily in the Visayas and Mindanao regions. It ranks as the third-largest producer of distilled spirits in the country, as per Nielsen Philippines.
Enhancing the alcoholic beverages sector is the group’s beverage production venture carried out by Asia Brewery Inc. This company holds a dominant 95 percent portion of the energy drink market, a significant 75 percent share of the soy milk market, and a noteworthy 20 percent share of the bottled water market.
Furthermore, LT Group is engaged in sugar milling and ethanol manufacturing through its involvement with Victorias Milling, holding a stake of 30.9 percent in the enterprise.
ithin the tobacco industry, LT Group possesses a significant stake in Philip Morris Fortune Tobacco Corp., a company that holds approximately 62 percent of the market share for cigarettes in the Philippines. LT Group’s influence extends further, encompassing Philippine National Bank, a major local private commercial bank renowned for its substantial assets, net loans, capital, and deposits. Additionally, LT Group is in control of Eton Properties Philippines Inc., a prominent participant in both office space and residential real estate development within Metro Manila.
In the initial three quarters of 2023, LT Group achieved a profit of P25.7 billion, marking a significant 313.2 percent rise compared to the P6.2 billion recorded in the same period last year.
The combined net earnings that can be attributed to shareholders reached P20.4 billion, indicating a notable 105.1 percent surge from the P10.0 billion of the previous year.
The banking industry recorded earnings amounting to P11.5 billion. The tobacco sector garnered a net income of P12 billion. Tanduay achieved a profit of P860 million, whereas Eton’s earnings stood at P335 million. Victorias Milling generated a profit of P186 million. The total revenues reached P71.3 billion, marking a 6.6 percent increase.
