As the Philippine stock market begins 2026 at its highest point of the previous year, analysts recommend buying Globe Telecom shares for their strong connectivity services, high dividend yields, and digital growth potential.
The Philippine Stock Exchange index (PSEi) began 2026 at 6,052.92, the best level of 2025 but 7.29% below the 2024 close of 6,528.79. The year 2025 faced challenges from the flood control funds scandal, driving the market to a five-year low of 5,584.35 on November 14, 2025. Additionally, GDP grew by 4% in the third quarter, below the government's target, while foreign investor net outflows reached P47.13 billion.
Signs of recovery emerged, including a BBB+ credit rating from S&P Global in November 2025 and rate cuts by the Bangko Sentral ng Pilipinas and US Federal Reserve in December. Amid advice for defensive plays, Globe Telecom (GLO) is recommended as an ideal buy. It was named the “Most Recommended Telco Brand” in June 2025 by SYNERGY/YouGov, excelling in 5G networks, premium Platinum plans offering lounge access and medical insurance, and GFiber speeds up to 1.5 Gbps bundled with Disney+ and KonsultaMD telehealth.
Globe maintains a payout ratio of 70% to 76% of core net income, delivering dividend yields of 5.42% to 5.8%. Through its stake in Mynt, operator of GCash—the Philippines' first US$5 billion unicorn with over 6 million partner merchants—Globe shows strong fintech potential. It has diversified into telehealth via KonsultaMD, 917Ventures for startups, and data centers in partnership with ST Telemedia Global Data Centres and Ayala Corporation. It remains the leading mobile network operator by subscriber base and market value, with an AA MSCI ESG rating and nine consecutive years in the FTSE4Good Index.
However, it faces pressure from PLDT in enterprise and fixed broadband, and from DITO on speeds in some regions. The stock trades at a premium due to fintech assets, potentially sensitive to GCash growth changes. In 2024, it achieved record revenues with strong EBITDA margins. It is expected to thrive through investments in AI, healthcare, and sustainability.
