Bumper Returns For Investors As 11 Listed Firms Pay Shareholders N762.12bn Final Dividends

Equities investors are in for bumper returns on investment as Dangote Cement Plc and 10 other companies listed on the Nigerian Exchange (NGX) have declared N762.121 billion dividend payout to shareholders for the financial year ended December 31, 2022.

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. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business called retained earnings and pay a proportion of the profit as a dividend to shareholders.

The 10 other companies are; MTN Nigeria Communication (MTNN), Geregu Power, Nigerian Breweries, United Capital, Lafarge Africa, BUA Cement, Nestle Nigeria, Dangote Sugar Refinery, Transcorp Hotel and NASCON Allied Industries (NASCON).

Companies operating in Nigeria were faced with double-digit inflation instigated by the Russia-Ukraine war. With inflation steadily increasing to 21.34 per cent in December 2022, the Central Bank of Nigeria (CBN) had increased its monetary rates that also contributed to severe operating environment for companies in the country.

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For the period under review, Dangote Cement, in line with its dividend policy, the board of directors proposed a final dividend of N340.82 billion, representing N20 per share. MTNN declared a final dividend of N10 per share, amounting to N203.55 billion, while Geregu Power proposed final dividend of N8.00 per share, amounting to N20 billion.

Nigerian Breweries is expected to pay final dividend of N10.584 billion or N1.03 per share, while United Capital proposed a final dividend of N9 billion or N1.50 per share. Also, Lafarge Africa, BUA Cement, Nestle Nigeria, Dangote Sugar Refinery, Transcorp Hotel and NASCON Allied Industries (NASCON) declared a dividend payment of N32.216 billion, N94.82 billion, N28.932 billion, N18.22 billion, N1.33 billion and N2.649 billion, respectively.

Financial analysts lauded 2022 corporate earnings and dividend payout of Dangote Cement, others, stating that firms in Nigeria are resilient to overcoming challenges and declared dividend from their earnings.  

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.”

Chief research officer, InvestData Consulting Limited, Mr. Omordion Ambrose said the 2022 performance of these companies are impressive and their dividend returns more attractive when compared to yields on money market instruments.

“From the results we have seen so far, MTN Nigeria proposed N10.00 final dividend and Geregu Power declared N8.00 in its first dividend payout on the NGX. Some of these companies over the years have been consistent in dividend payout to shareholders,” he said.

From shareholders’ perspective, chairman, Progressive Shareholders Association (PSAN), Boniface Okezie, stated that, despite economic hardship, Dangote Cement, among others have reported impressive performance.

According to him, as we have seen from their performance, there is resilience in the corporate world which means there is hope for our domestic economy.