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Dividend payout for Pfizer is 12.48 million won
by Chon, Seung-Hyun Apr 15, 2022 06:03am
Pfizer Pharmaceutical Korea performed better last year with sales of the COVID-19 vaccine, but its dividend was only 12.48 million won. Regardless of the sharp rise in performance, the dividend payout ratio was only 0.01%, allocating 20% of the capital of preferred stocks. It has adhered to a unique dividend policy that distributes 12.48 million won in total except for twice in the past 20 years. According to the Financial Supervisory Service on the 14th, Pfizer Korea decided to pay 12.48 million won in dividends last year. Dividends have been set at 12.48 million won for the fourth consecutive year since 2018. Although its performance improved significantly with the COVID-19 vaccine last year, dividends were calculated on the same scale as before. Pfizer Korea's sales soared more than four times from 391.9 billion won in 2020 to 1.694 trillion won last year. The amount is more than twice as much as 751.6 billion won recorded in 2017 before Pfizer Korea spun off with Viatris. Pfizer's performance soared as it supplied the COVID-19 vaccine developed with Germany's BioNTech. Pfizer Korea recorded an operating loss of 7.2 billion won in 2020, with its operating profit rising to 59.2 billion won last year. Net profit reached 95.9 billion won last year. The sale of land and buildings at its headquarters in Jung-gu, Seoul, generated 44.4 billion won in profits from disposal of tangible assets, further expanding its net profit. Dividends paid to shareholders are proportional if a company's net profit surges, but it is interesting that last year's dividend of Pfizer Korea was set at 12.48 million won, the same as the previous year. The dividend payout ratio stood at only 0.01 %. Pfizer Korea calculated dividends by applying a dividend rate of 20% to preferred stock capital. Pfizer Korea has a total capital of 922.92 million won. Among them, common stock capital is 860.52 million won and preferred stock capital is 62.4 million won. Dividends of 12.48 million won were set at 20% of 62.4 million won in preferred stock capital. The largest shareholder of Pfizer Korea is Pfizer's Dutch subsidiary 'PFG South Korea 1 B.V.' with a 97.15% stake. Pfizer Korea issued a total of 12.8 million preferred shares. Among them, PFOFG South Korea 1 B.V. holds 7,280 shares, while domestic shareholders hold the remaining 5,200 shares. PFOFG South Korea 1 B.V. and domestic shareholders receive 7.28 million won and 5 million won in dividends from Pfizer, respectively. As of the end of November 2020, the capital of Pfizer Korea was 12.08 billion won. However, the capital was reduced to 922.92 million won as the extraordinary shareholders' meeting at the end of 2020 decided to incinerate 2,233,416 shares for a fee of 61,000 won per share owned by ordinary shareholders. Preferred stocks did not change, so the same dividend as the previous year was set according to the dividend calculation standard of "20% preferred stocks." For 20 years since 2002, Korea Pfizer has been paid 12.48 million won in dividends on the same basis of 20% of preferred stocks except for No. 2. In 2017, dividends were set at 79.794 billion won, more than net profit. At that time, both common stocks (2,455,520 shares) and preferred stocks (12,480 shares) decided to pay 660% of the par value of 5,000 won as a dividend rate, expanding the amount of dividends. In 2008, a dividend of 190 billion won was set. Even though it recorded a deficit of 600 million won at the time, high dividends were confirmed as it decided a dividend rate of 3045% compared to its face value. In the past 20 years, only two high dividends have been set, and the rest have continued to have a small dividend policy of 12.48 million won. In other words, the headquarters made profits by making high dividends once a decade on average. An official from Pfizer Korea said, "We cannot disclose the background of the dividend decision." Pfizer