For many Filipinos, the dream is to have tulog ka na, kumikita ka pa. That’s exactly what dividend income can do for you — it gives you regular cash flow without needing to work extra hours.
But how does it work in the Philippine setting, and how much can you realistically earn? Let’s break it down.
What Are Dividends?
Dividends are payouts you receive when a company, mutual fund, or investment vehicle shares a portion of its profits with its investors.
You can think of it as your “share in the profit” for investing your money. These payouts can be distributed monthly, quarterly, or annually, depending on the investment.
The Different Ways to Earn Dividend Income
Here are the most common ways to build dividend-based income streams in the Philippines:
1. Dividend-Paying Stocks
If you own shares of companies listed on the Philippine Stock Exchange (PSE), you can receive cash dividends whenever the company declares them.
Some of the best dividend-paying stocks in the Philippines include:
- PLDT (TEL) – consistently pays high cash dividends.
- DMCI Holdings (DMC) – one of the highest-yielding dividend stocks in the market.
- Globe Telecom (GLO) – regular quarterly payouts.
- San Miguel Corporation (SMC) – large but cyclical dividends depending on profits.
If you invest in these companies and hold your shares, you can receive cash credited directly to your brokerage account during each payout period.
2. Real Estate Investment Trusts (REITs)
REITs are one of the easiest ways to get monthly or quarterly income in the Philippines.
They’re companies that own income-producing properties like office buildings, malls, or hotels — and by law, they are required to distribute at least 90% of their profits as dividends.
Popular REITs you can consider include:
- AREIT (Ayala Land REIT)
- MREIT (Megaworld REIT)
- RCR (RL Commercial REIT)
- FILRT (Filinvest REIT)
These typically pay dividends quarterly, but when combined from multiple holdings, they can give you a steady stream of income each month.
3. Pag-IBIG MP2 Savings Program
While not a stock or REIT, Pag-IBIG MP2 is technically a dividend-earning investment — backed by the government.
It’s a low-risk savings program that earns annual dividends, usually higher than most bank rates. The income may not be “monthly,” but many Filipinos reinvest or ladder multiple MP2 accounts to receive regular cash flow year-round.
For example, by opening several MP2 accounts in different years and opting for annual dividend payout, you can design your own “dividend schedule” over time.
4. Mutual Funds and ETFs (Including ALFM)
If you don’t want to pick individual stocks, you can invest in mutual funds or exchange-traded funds (ETFs) that pay out dividends.
One great local example is ALFM Mutual Funds, managed by BPI Investment Management. They pool money from investors and invest in dividend-paying assets such as blue-chip stocks and bonds.
Depending on the fund type (like ALFM Dividend Fund), investors may receive periodic income distributions or benefit from reinvested dividends that grow over time.
Mutual funds like ALFM are perfect for beginners who want passive growth with professional fund management — without monitoring the stock market daily.
How to Start Building Your Dividend Income
- Set your goal.
Do you want passive cash flow (regular dividends) or long-term growth (reinvested dividends)? - Pick your platform.
- For stocks and REITs, you’ll need a stockbroker account (COL, BPI Trade, FirstMetroSec, etc.).
- For MP2, enroll through the Pag-IBIG website or branch.
- For mutual funds like ALFM, you can start via BPI branches or their official investment portal.
- Diversify.
Don’t rely on just one source. Combine MP2 for stability, ALFM for diversification, and REITs or dividend stocks for higher yield. - Reinvest your dividends.
The secret to compounding wealth is to reinvest your earnings instead of spending them early.
How Much Can You Earn?
Let’s say you have ₱500,000 invested:
| Investment Type | Average Yield | Estimated Annual Dividends |
|---|---|---|
| Pag-IBIG MP2 | 6.0% | ₱30,000 |
| ALFM Dividend Fund | 5.5% | ₱27,500 |
| AREIT or MREIT | 7.0% | ₱35,000 |
| Dividend Stocks (Average) | 5.0% | ₱25,000 |
If you mix them strategically, you could earn around ₱30,000–₱35,000 per year, or roughly ₱2,500–₱3,000 per month, without lifting a finger.
Risks to Remember
- Stock and REIT prices fluctuate, so your capital can go up or down.
- Dividends aren’t guaranteed — companies can reduce or skip them in bad years.
- Mutual fund returns vary depending on market performance.
- Pag-IBIG MP2 is stable but not liquid — early withdrawal has conditions.
The key is to balance safety and returns based on your financial goals.
Blogger’s Corner
If you want consistent, almost “automatic” income every month, dividend investing is one of the best strategies for Filipinos. But it’s not a get-rich-quick formula — it’s a long-term habit of saving, investing, and reinvesting.
The best part? You can start small. Whether it’s ₱500 in MP2, ₱1,000 in ALFM, or ₱5,000 in a REIT, every peso you invest today moves you closer to real financial freedom.