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Tag: dividend

  • REITs Philippines Guide: Everything You Need to Know (2025)

    REITs Philippines Guide: Everything You Need to Know (2025)

    REITs in the Philippines are a relatively new investment with the first REIT being listed in only 2020. However, since then, they have gained popularity with investors as a way to generate passive income and invest their hard-earned savings. This is the REITs Philippines Full Explainer & Guide.

    What are REITs?

    REIT really just stands for Real Estate Investment Trust. While that’s a bit complicated to digest, how they work is actually quite simple. Let’s break this down into five main features: 1) Invest in Real Estate 2) Investment Funds, 3) A Subsidiary (Mostly), 4) Dividend-Paying, 5) Different “Flavors.”

    REITS Invest in Real Estate

    This may be a little obvious, but you’re probably wondering what type of real estate? Well, the answer is really any, but the key feature is that the real estate has to be income-generating, which means they lease it out to other businesses (or individuals) to use the real estate.

    REITS Are Investment Funds

    This means that it gathers a lot of investments from different investors (usually in the form of cash). A REIT, then, takes this cash and invests it in real estate where investors can indirectly own the real estate.

    That’s a bit of an oversimplification, what’s more likely to happen is that a bigger company forms a REIT and then sells the shares of those REITs for cash to fund new operations. However, it has more or less the same effect.

    It’s important to note two things here: Firstly, you own the fund; not the real estate itself. That means you can’t go onsite and just start commanding people to do things for you. However, the lack of control also leads to the lack of hassle. Secondly, that means that there are fund managers that manage the real estate, which brings us to the second point.

    REITs are (Mostly) Subsidiaries

    While not strictly necessary, REITs are mostly subsidiaries. This means that they’re owned by a bigger company that helps manage their operations AND allows for new property acquisition. It is, thus, important to consider who is the main company behind a REIT and what potential properties can be bought by the REIT. For example, AREIT is backed by Ayala Land Inc., VREIT is backed by Vista Land & Lifescapes Inc., etc.

    REITs are Dividend Paying

    The most attractive feature of REITs is that they are required by law to pay out 90% of their net income from their properties. This means (nearly) everything they earn is simply paid out in cash to investors. This is why REITs are so attractive because they essentially provide the cashflow and benefits of real estate without any of the hassles of traditional real estate investments.

    REITs have Different “Flavors”

    The most attractive feature of REITs is that they are required by law to pay out 90% of their net income from their properties. This means (nearly) everything they earn is simply paid out in cash to investors. This is why REITs are so attractive because they essentially provide the cashflow and benefits of real estate without any of the hassles of traditional real estate investments.

    Below, for example, are some companies that deal with very different properties.

    REIT NameMain Properties
    Vista REIT (VREIT)Malls & Offices
    Citicore REIT (CREIT)Solar Farms & Leases to Solar Farms
    Ayala REIT (AREIT)Offices, Shopping Centers, Industrial Lots, Hotels
    Premiere Island Power REIT (PREIT)(For Power Companies) Land, Buildings, and Machinery

    None of these are recommendations, but more just to demonstrate the variety of REITs available here in the Philippines.

    Who are REITs for?

    Here, it would probably more useful to devise the risks and rewards of REITs:

    Rewards / ProsRisks / Cons
    Dividend-Paying – 90% of the income is paid out every year!No control – Puts you at risk of poor management & the whims of a big company
    Hassle-Free Real Estate – Provides access to real estate without any of the hasslesReal Estate Risks – No tenants, falling property prices, etc.
    Low Upfront Capital – You can invest in REITs for a couple thousand at a time, which makes it great for beginners.Share Dilution – It’s possible for companies to issue more shares than it makes sense (thereby, diluting your share).
    Liquid – This means that you can sell your REIT share at any time if you need it. Subject to Management Fee – The property manager also charges a fee for managing the properties
    Diversified Real Estate – You also get a lot of different properties with a lot different tenants compared to a single propertyAt risk of central bank interest rates – REITs both loan to buy properties and their value is directly tied to the interest rates. Generally, higher is worse for REIT prices and the loans they take on.
    Market Fluctuations – The prices of REITs aren’t guaranteed.

    To conclude, here are largely the category of investors REITs cater to.

    1. Need cashflow from their investments
    2. Want to invest in real estate without the hassle
    3. Want to invest in real estate without the large upfront capital (especially those of commercial and industrial properties).
    4. Need diversification for their portfolio.

    How can I buy REITs?

    REITs are as easy as buying any other stock, where you can find an in-depth guide here (from no account to buying stocks). Broadly speaking, though, here are the simplified steps!

    1. Open a stockbroker account online!
    2. (Additional Step for REITs) Give consent to your stockbroker to create an Name-on-Central Depository (NoCD) account!
    3. Buy the REIT as you would any other stock! Just be sure to enter the right stock ticker code.

    Alternatively, you can also invest in REIT investment funds (investment funds that invest in REITs) such as those offered by AXA and Manulife. Though, right now, there are no funds specifically dedicated to Philippine REITs (only a mix of different parts of the world like Asia or the US).

    REITs Philippines: The Best Investment?

    While REITs can be an amazing investment for average people, it also really depends on the type of investor someone is. Not everyone can handle the market fluctuations and some prefer having control. Others, however, prefer a passive investment or may be just be starting on the journey. In other words, it depends more on the investor than the investment.

    Whatever situation that may be, we hope that this guide on REITs Philippines sheds light on your investment journey and gives you more ideas on how to invest your hard-earned savings. Remember to save and invest regularly and consider all risks when investing!

  • How to Buy Stocks in Jollibee in COL Financial in 3 Detailed Steps

    How to Buy Stocks in Jollibee in COL Financial in 3 Detailed Steps

    Buying stocks in big companies can be a rewarding and essential experience to anyone’s personal finance journey. Did you know that you can actually buy stocks in Jollibee? Jollibee is the country’s most famous fast-food chain, but it also holds several other businesses. This article will teach you how to buy stocks in Jollibee using COL Financial.

    This article assumes that you already have an account open. If you don’t know how to do that, you can find the process out here.

    1) Log into your COL Financial Account

    First, you want to log-in to your COL Financial account given your ID and credentials. If you can’t find this (after opening your account), it’s probably in your e-mail. Be sure to check spam and your primary inbox for the e-mail.

    Then, once you land on the home page (as you can see above), you want to click “Trade” and then “Enter Order.” This will take you to the order screen.

    2) Enter in the Order

    This is what the order screen looks like. While it does look overwhelming, let’s break it down piece-by-piece.

    On the rightmost side, you’ll see the information panel about the stock. It’s too much to get into all of them here, but the most important is the “Last” which tells us what price the stock is at right now and the “Board Lot,” which tells us the minimum number of shares we need to buy and the multiple at which we buy it at. The board lot also tells us what’s the minimum amount we need.

    For example, Jollibee has a board lot of 10 which means we can only buy 10 shares of Jollibee at a time (we can’t buy 1 or 9 at a time). Its current price is PHP227.6 per share, which means we would need at least PHP2276.00 + Fees to buy the smallest amount of Jollibee.

    However, you’ll notice that prices don’t stay the same. This is what the middle part is for. On the Ask column, you’ll see what people are selling their stocks at, and on the Bid column, you’ll see what people are willing to pay for it.

    Referring to the chart above, on the ask column, you’ll notice that someone is selling 10 shares of Jollibee at a price of PHP 227.2; this means if you want to buy their shares, you have to pay PHP227.2 * 10 (PHP 2272.0) + fees. However, if you want to wait for a lower price, you can bid lower than that amount.

    Keep in mind though that 1) people who placed a higher price than you takes priority and 2) you need to wait for someone to sell to you the stock (which is not guaranteed).

    This is the most important part. The order details is basically how you input the order. The only things you need to know right now is about the Term, Stock Code, # of Shares, Price, and Net

    • Term – How long you want to bid for. In DAY, that means you order for the day, then the order cancels after the day you placed it. In GTC, this means you order for 60 days (waiting for 60 days) before the order is cancelled. In ATC, orders are sent during the “run-off” period (after 12pm) and are converted to DAY orders equivalent to the run-off price of a stock. Bottomline: if you want to buy right now, pick DAY or GTC and bid a price people are asking for.
    • Stock Code – This is the symbol for a stock (or better known as a stock ticker). Jollibee has JFC (for Jollibee Food Corporation).
    • # of Shares – This is the number of shares you want to buy. Remember to buy in multiples of the board lot.
    • Price – This is the price per share you’re willing to pay.
    • Net – This is the total amount you actually have to pay (fees included). This is calculated as (price * shares) + (fees)

    3) Wait for Order to Match

    When you’re entered an order, it doesn’t automatically mean that you buy the stock. The market first has to match your price. This means that if you set a buy price at PHP200, but the market is at PHP250, you’ll have to wait until it comes down to PHP200.

    Of course, if you want to buy a stock sooner, then you can set an order closer to the market price. However, this also means that you might have to pay more than what you wanted to. Remember: when you buy a stock, the lower the better (just like buying a car or a house).

    In the meantime, you can monitor your current orders in the View/Modify Order screen. This is especially helpful if you want to wait for a lower price using the GTC order.

  • Pag-IBIG MP2 Average Dividend Rate

    Pag-IBIG MP2 Average Dividend Rate

    Pag-IBIG MP2 is one of the most popular savings vehicles in the country because of its high interest rates. The following is a table of the agency’s historical dividend or interest payments collected from various sources.

    YearInterest / Dividend Rate
    20247.10%
    20237.05%
    20227.03%
    20216.00%
    20206.12%
    20197.23%
    20187.41%
    20178.11%
    20167.43%
    20155.34%
    20144.69%
    20134.58%
    20124.67%
    20114.63%

    The 10-year Pag-IBIG MP2 average dividend rate stands at: 6.88%. The average since 2011 is 6.24%.

    References:

    [1] ABS-CBN. For 2011-2022

    [2] ANC. For 2023

    [3] GMA. For 2024