Wiwynn’s dividend plan has become a major talking point in Taiwan’s capital market as generative AI keeps pushing up global cloud data center spending. The server maker is offering both a cash dividend of about NT$144.39 per share and a stock dividend of 19.8279 shares per share, an uncommon structure for a high-priced stock. Chairman Hung Li-ning described the move as a 「brave attempt」.
Cash payout is complete, stock dividend is next
For 2025, Wiwynn posted consolidated revenue of NT$950.663 billion, net profit of NT$51.118 billion, and earnings per share of NT$275.06, all cited in the report as record results. Backed by that performance, the board approved a two-part distribution plan.
The cash dividend, at about NT$144.39 per share, went ex-dividend in late June and was fully paid in mid-July. The stock completed its fill-the-gap move in 11 trading days, according to the report.
The stock dividend, set at 19.8279 shares per share through retained earnings capitalization, gives shareholders nearly two new lots for every existing lot held. After the ex-rights process, one lot would expand to nearly three lots. The ex-rights trading date is set for Sept. 2, and the record date is Sept. 1.
Why Wiwynn chose a large stock dividend
The report says large profitable technology names usually favor cash-only dividends to avoid diluting EPS through a bigger share base. Wiwynn took a different route for two stated reasons: preserving cash for expansion and improving trading liquidity.
Using shares instead of cash to support AI spending
AI servers are expensive. Spending on advanced GPUs, ASICs, and a localized global supply chain all requires substantial working capital. Wiwynn has approved a capital expenditure plan of $942 million for the second half of the year, equal to about NT$30.37 billion in the source. If profits were paid out entirely in cash, the company would be left with less flexibility for operations and expansion. By issuing stock dividends, Wiwynn can shift hundreds of billions of New Taiwan dollars in retained earnings into capital surplus and share capital while keeping funds available for capacity expansion in the U.S. and Mexico and for component procurement.
Lowering the barrier for a high-priced stock
Before the ex-rights event, Wiwynn’s stock had climbed to a record NT$6,650. That put the cost of one board lot at about NT$6.65 million. After a large ex-rights adjustment, the stock price would fall proportionally to roughly one-third of that level, making it easier to build a position and potentially lifting turnover and liquidity.
Stock dividends are not the same as stock splits
The article draws a clear distinction between Taiwan-style stock dividends and the stock splits often seen in the U.S. market, including for companies such as Nvidia and Apple. Both actions increase the share count, lower the stock price, and leave market capitalization unchanged at that moment. The accounting treatment and tax consequences are different.
| Category | Stock dividend | Stock split |
|---|---|---|
| Accounting structure | Internal transfer within shareholder equity; retained earnings decline and legal share capital expands | Share capital and retained earnings stay unchanged; only the number of shares outstanding is divided into smaller units |
| Requirement | The company must have actual profit or retained earnings | No profit threshold; even a loss-making company can carry it out |
| Shareholder tax | Taxable based on NT$10 par value per share as personal dividend income | Tax-free because there is no realized income |
| Extra charges | Distributions above the threshold are subject to a 2.11% supplemental health insurance premium withholding | No additional health insurance or administrative withholding costs |
Under the Taiwan tax treatment described in the report, stock dividends are treated as dividend income using the NT$10 par value rule. Using the article’s estimate of about 1,982 shares distributed per lot, a shareholder holding one lot of Wiwynn stock would be recognized as having NT$19,820 in dividend income.
If the stock later fills the ex-rights gap and returns to prior highs, that tax cost may look minor relative to capital gains. If the shares trade below the ex-rights reference level, though, the situation changes. Shareholders could face a lower market value after the ex-rights event, then still have to pay personal income tax on the stock dividend the following May, on top of the previously withheld supplemental health insurance premium.
Who may avoid the allocation and who may stay in
With the ex-rights date approaching, the report says market positioning has started to diverge. The decision comes down largely to tax status and investment style.
Investors in higher income brackets, especially those facing tax rates of 30% to 40% or above and holding larger positions, may see a sizeable increase in taxable dividend income from the new shares. That can push them into a higher effective tax burden and bring a larger supplemental health insurance deduction. According to the report, these investors often trim their positions before the last day to buy and skip the stock dividend, then look for a chance to re-enter after the ex-rights adjustment.
For investors in lower tax brackets, including long-term holders in the 5% bracket, the article says a combined tax filing can qualify them for an 8.5% dividend tax credit with a ceiling of NT$80,000. In that case, the tax burden from participating in the stock dividend may be low and could even result in a tax refund.
The next test is whether earnings growth can keep up
The report also points to operating momentum in 2026. Wiwynn posted cumulative EPS of NT$156.38 in the first half, and July revenue rose nearly 40% year over year to another record. For investors who believe AI server demand and custom ASIC capacity expansion can outpace the increase in share capital, taking the stock dividend may be a way to build a larger position at lower cost and aim for long-term capital gains that exceed the near-term tax bill.
Even so, a much larger share base raises the earnings hurdle from here. Whether the stock can deliver a solid post-ex-rights recovery will depend on how quickly new capacity in the U.S. and Mexico comes online, the pace of orders from North American cloud customers, and whether future quarterly results can keep delivering the level of growth needed after the capital expansion.