Avianca Taca Holding SA (PFAVTA), the owner of Colombia’s biggest airline, rose for a third day after the company proposed what would be its first dividend payment since the stock’s May trading debut.
The preferred shares jumped 1.4 percent to 4,310 pesos at 11:47 a.m. in Bogota. The stock has advanced 6.6 percent in the past three days, the steepest three-day gain since Feb. 14.
The company’s board of directors proposed a dividend payment of 50 pesos per share to be paid after April 27. The dividend payment will be considered at a shareholders meeting on March 30, according to a statement posted on the website of Colombia’s financial regulator on March 7.
“It’s a small yield, but more important than the amount that they’ll put out is the fact that the company is affirming that it already has the capacity to distribute dividends,” said Santiago Melo, an analyst at Alianza Valores SA. “Investors weren’t expecting it,” he said.
The company said on March 8 that 2011 profit rose 221 percent from a year ago to 202 billion pesos ($114 million). Shares have gained 31 percent since the start of the year after tumbling 32 percent in the fourth quarter, the worst performance among stocks in Colombia’s benchmark index.
“The stock has been pretty strong lately, and this is an additional factor that helps reaffirm confidence for investors in the company,” Melo said.
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