Bumper Harvest On NGX As Companies Propose Dividend

As audited accounts for the year ended December 31, 2023 released on the Nigerian Exchange (NGX), companies proposed dividend payments to their shareholders as recommended by their respective boards of directors.

Dividend has remained one of the key factors that traditionally drive stock market activities and aid investment decisions towards stocks across the globe, and the Nigerian bourse is not an exception.

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. For example, Dangote Cement Plc’s shareholders will be receiving a dividend of N30 per share or a total of N511.23 billion on May 31, 2024. Zenith Bank will pay a total dividend of N109.886 billion, representing N3.50 per share to its shareholders electronically on May 8, 2024, while BUA Foods to pay shareholders dividend of N5.50 per share or N99 billion on September 26, 2024.

In order to collect dividends on a stock, shareholders simply need to own shares in the company through a brokerage account or a retirement plan such as an IRA. When the dividends are paid, the cash will automatically be deposited into shareholders accounts.

Coronation Research in its writeup titled ‘The Glorious Dividend’ said over the past four years the NGX Exchange’s All-Share Index has delivered exceptional returns.

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“Companies must reward their shareholders for their investment in cash as well as stock price appreciation. Dividend payments cannot be guaranteed but management needs to make best efforts to ensure that dividends are paid regularly,” the Research firm said.

The managing director, ARM Securities Limited, Mr. Rotimi Olubi said, Dangote cement has consistently been paying dividend for over the years, saying, “I believe this is their usual routine to send a message that they are committed to keeping their legacy and ensure investors that they are financial buoyant.”

Speaking on the dividend declared so far, the managing director of APT Securities and Funds Limited, Mallam Garba Kurfi stated that the investing community is delighted by the dividends declared so far, saying that the companies were able to maintained previous dividend payout, while some increased the amount of dividend declared when compared to previous year.

Also, the president, Association for the advancement of the Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar, noted that dividend payment is an important component of an investor’s investment strategy which provides both financial rewards and confidence in the company’s performance and prospects.