Acer's FY2024 Earnings: A Dividend Delight for Investors

Acer Inc. (TWSE: 2353) has just announced its financial results for the fourth quarter of 2024 and the full fiscal year, and the numbers are impressive. The company reported a net income of NT$5.54 billion for the fiscal year 2024, marking a 15.4% year-on-year growth in operating income. This strong performance is a testament to Acer's strategic initiatives and diversification efforts, which have paid off handsomely for shareholders.



One of the standout figures from Acer's earnings report is the cash dividend of NT$1.7 per share that the company has approved. This dividend, based on an ex-dividend record date of June 26 and distribution on July 24, represents a significant return for shareholders. The dividend payout ratio of NT$1.7 per share to an EPS of NT$1.84 indicates that Acer is committed to returning a substantial portion of its earnings to shareholders, which is a positive signal for investor confidence and market perception.

Acer's strategy to build multiple business engines has been a key factor in its financial success. By the end of 2024, the company had reached a total of 13 public subsidiaries, which contributed to 37.4% of the operating income and 28.3% of the revenues. This diversification strategy has allowed Acer to expand beyond its traditional personal computers and displays business, with businesses other than personal computers and displays contributing 28.3% of the revenues in 2024.



For example, Altos Computing Inc., a subsidiary specializing in AI servers and workstations, saw a remarkable 42.5% year-on-year revenue growth in Q4 2024 and 66.8% year-on-year growth for the full year 2024. Similarly, Acer ITS Inc. reported a 6.2% year-on-year revenue growth in Q4 2024 and 19.4% year-on-year growth for the full year 2024. These figures demonstrate the success of Acer's strategy to expand into new and growing markets, such as AI and IT services.

In addition to diversification, Acer has also focused on innovation and sustainability. The company has announced nearly 30 new products in 2025, including Copilot+ PCs, AI PCs, gaming PCs, and gaming handhelds. Acer's carbon-neutral Aspire Vero 16, which features a chassis made from more than 70% post-consumer recycled plastic and bio-based oyster shell material, has been selected as an honoree of the CES Innovations 2025. This commitment to sustainability not only aligns with Acer's environmental responsibilities but also appeals to a growing segment of environmentally conscious consumers.

The sustainability of these strategies in the long term can be validated by Acer's consistent growth and innovation. The company's six consecutive quarters of year-on-year growth in consolidated revenues, as well as its increasing market share in new business areas, indicate that Acer's diversification and innovation strategies are effective and sustainable. Furthermore, Acer's commitment to sustainable growth and its exploration of new opportunities that align with its environmental and social responsibilities suggest that the company is well-positioned to continue its growth trajectory in the long term.

For income-seeking investors, Acer's FY2024 earnings report is a clear indication that the company is on the right track. The cash dividend of NT$1.7 per share, combined with the company's strong financial performance and strategic initiatives, makes Acer an attractive option for those looking to build a reliable income stream. However, as with any investment, it's important to do your own research and consider your risk tolerance before making any decisions.