KUALA LUMPUR (Nov 26): Top Glove Corp Bhd’s share price jumped more than 4% in morning trade on Bursa Malaysia today after the glove maker's executive chairman Tan Sri Dr Lim Wee Chai said yesterday its dividend yield is estimated to be more than 6% for the current financial year ending Aug 31, 2021 (FY21).
As at 9.59am today, Top Glove was 27 sen or 4.06% higher at RM6.92, with some 15 million shares traded.
At RM6.92, Top Glove had a market value of about RM56.74 billion based on the company’s number of issued shares at around 8.2 billion units.
Yesterday, Lim said Top Glove’s dividend yield is estimated to be more than 6% for FY21 because the company is expected to do well as the Covid-19 pandemic generates demand for rubber gloves.
“We know that the company will continue to do well, especially in FY21,” Lim said in a virtual press conference.
Today, Top Glove’s share price rose — after falling in recent days due to positive news of Covid-19 vaccine trials and as investors weighed the company’s updates on the impact of the temporary stoppage by stages of its manufacturing facilities within Meru in Klang, Selangor to curb the spread of the Covid-19 pandemic.
Positive news of Covid-19 vaccine trials has been perceived as negative for glove manufacturers in anticipation that there would be less demand for gloves.
Yesterday, Top Glove’s share price closed 15 sen or 2.21% lower at RM6.65 — after ending 7% down on Tuesday.
According to Top Glove’s Bursa filings, the company declared for the fourth quarter ended Aug 31, 2020 (4QFY20) a dividend of 8.5 sen a share, bringing its cumulative full-year dividend to 11.83 sen a share.
Based on Top Glove’s closing share price of RM6.65 yesterday, the full-year dividend of 11.83 sen a share would have translated into a dividend yield of 1.78%.