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KUALA LUMPUR (Nov 26): Top Glove Corp Bhd’s share price rose more than 4% in morning trading in Bursa Malaysia today after glove maker CEO Tan Sri Dr Lim Wee Chai said yesterday that his dividend yield was estimated at more than 6%. for the current financial year ending August 31, 2021 (fiscal year 21).
At 9.59am today, Top Glove was 27 sen or 4.06% higher at RM6.92, with about 15 million shares traded.
At RM6.92, Top Glove had a market value of approximately RM56.74 billion based on the number of issued shares of the company at around 8.2 billion units.
Yesterday, Lim said Top Glove’s dividend yield is estimated to be more than 6% for Fiscal Year 21 because the company is expected to do well as the Covid-19 pandemic drives demand for rubber gloves.
“We know that the company will continue to perform well, especially in fiscal year 21,” Lim said in a virtual press conference.
Today, Top Glove’s share price rose, after falling in recent days due to positive news from the Covid-19 vaccine trials and as investors weighed the company’s updates on the impact of the temporary stop staged from its manufacturing facilities within Meru in Klang, Selangor to curb the spread of the Covid-19 pandemic.
The positive news from the Covid-19 vaccine trials has been perceived as negative for glove manufacturers as they anticipate there will be less demand for gloves.
Yesterday, Top Glove’s share price closed 15 sen or 2.21% lower at RM6.65, after ending 7% lower on Tuesday.
According to Top Glove filings in Bursa, the company declared for the fourth quarter ending August 31, 2020 (4QFY20) a dividend of 8.5 sen / share, raising its cumulative dividend for the entire year to 11.83 sen / share .
Based on Top Glove’s closing price of RM6.65 yesterday, the full-year dividend of 11.83 sen / share would have translated into a 1.78% dividend yield.
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