Some investors in the Nigerian Exchange Limited are due to receive over N744bn in dividend as announced by at least eight listed companies.
A dividend is a reward that companies give to their shareholders and a decision on this is usually taken by the board of directors of the company subject to the approval of the shareholders.
Only shareholders whose names appear in the register of members on dates specified by the companies are paid dividends.
According to stakeholders, the payment of a dividend is one of the key factors that drive the capital market and it also determines the health of a listed firm and as well as its economic environment.
As required by law, listed companies are expected to file their financial reports yearly.
Several companies have complied with the regulations by releasing their reports except for some banks which are still awaiting regulatory approval.
The eight companies paying over N744bn dividend are: MTN Nigeria, Lafarge Africa, Dangote Cement, Stanbic IBTC Holdings, Transcorp Hotels Plc, United Capital Plc, Nestle Plc and Nigerian Breweries Plc.
In the period under review, MTN Nigeria was able to raise its dividend payment by N75bn from N212bn recorded in 2021 to N288n in 2022.
According to a regulatory filing, the board of the company proposed a dividend payment of N10 per share to the distributable net income, which brought the total dividend for the year to N15,60; an increase of 18.9 per cent. The dividend payment will be made on April 20, 2023
For construction firm, Lafarge Africa Plc, a gross dividend of 200k was proposed on every ordinary share which amounted to N32.21bn. The company earned N 373.244bn revenue in 2022. (2021: N293.08bn) and its profit for the year stood at N53.64bn (2021: N51.003bn). The dividend is expected to be paid on April 28, 2023.
In the financial services sector of the capital market, United Capital Plc proposed a dividend of N1.50 kobo per ordinary share of 50kobo each for the financial year 2022 (2021 – 150kobo), amounting to N9bn (2021 – N9bn) to be paid to shareholders upon approval at the Annual General Meeting.
The proposed dividend is subject to withholding tax at the appropriate tax rate and is payable to shareholders.
Its gross earnings for the year stood at: N26.89bn (2021: N18.065bn), while its profit for the period was N9.65bn (2021: N11,25bn)
For multinational, Nestle Plc, the declared dividend was N40.02bn, a 17 per cent dip from the 2021 figure of N47.95bn. In the period under review, the consumer goods company recorded a 27 per cent increase in its revenue from N351.82 bn in 2021 to N446,81bn in 2022. Its profit for the year also went up by 22 per cent from N40.03bn in 2021 to N48.96bn in 2022. The final dividend of N36.50 per 50 ordinary shares will be paid on May 18, 2023.
The proposed dividend is subject to withholding tax at the appropriate tax rate and is payable to shareholders.
Its gross earnings for the year stood at: N26.89bn (2021: N18.065bn), while its profit for the period was N9.65bn (2021: N11,25bn)
For multinational, Nestle Plc, the declared dividend was N40.02bn, a 17 per cent dip from the 2021 figure of N47.95bn. In the period under review, the consumer goods company recorded a 27 per cent increase in its revenue from N351.82 bn in 2021 to N446,81bn in 2022. Its profit for the year also went up by 22 per cent from N40.03bn in 2021 to N48.96bn in 2022. The final dividend of N36.50 per 50 ordinary shares will be paid on May 18, 2023.
“We pray that the economy gets better as the new government takes over and form their government. They should tackle the economic challenges so that Nigerians can have a better purchasing power. That is the only way to grow our economy. If we are depending on foreign portfolio investors from abroad, our economy will not grow. Nigerians must be empowered to make informed investments in our economy.”
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Source: Punch Newspaper
