Investors in the Nigerian inventory market have made bumper harvests from their holdings in listed companies up to now in 2022, as they rake in over N1.24 trillion from dividend funds for the 2021 monetary 12 months.
According to knowledge tracked by Nairalyitcs, the analysis arm of Nairametrics, Dangote Cement, MTN Nigeria, and Zenith Bank Plc led the checklist of companies with the best dividend fee for the 12 months below evaluate.
The companies reduce throughout most sectors, from manufacturing (FMCG and industrial), telecom, banking, oil and fuel, and agriculture amongst different sectors. The 12 months 2021 was a very spectacular 12 months for the companies, posting over N11 trillion in income and over N2 trillion in mixture revenue after tax.
Dividend fee is among the methods inventory market buyers earn passive earnings, whereas companies additionally use this as an incentive to encourage buyers, which is paid from the revenue declared in that monetary 12 months. However, some companies do vote in favour of not paying dividends if the board believes the corporate wants money, or there was a loss declared.
Below is an evaluation of companies with the best dividend fee in the 2021 monetary 12 months.
Dangote Cement – N340.81 billion
Cement manufacturing firm, Dangote Cement declared a complete dividend of N340.81 billion to its quite a few shareholders having declared a dividend per share (DPS) of N20 for its complete 17.04 billion models of shares listed in the inventory market.
The firm elevated its DPS from N16 declared in the earlier 12 months after its revenue after tax elevated by 32% from N246.1 billion to N364.4 billion in 2021.
Similarly, the dividend fee made in the 2021 monetary 12 months represents 93.5% of the revenue made in the identical 12 months.
The dividend which is subjected to acceptable withholding tax is ready to be paid to its shareholders on fifteenth of June 2022, after the Annual General Meeting (AGM) of the corporate.
It is value noting that the register of shareholders closed on May thirty first, 2022.
MTN Nigeria – N267.1 billion
Telco large, MTN Nigeria declared and paid a complete dividend of N267.1 billion to its shareholders from its earnings in 2021. The firm declared an interim dividend per share of N4.55 and a ultimate DPS of N8.57, bringing its complete to N13.12 per 2 kobo odd share for its 20.35 billion listed shares.
The dividend fee in 2021 represents a 39.6% enhance in comparison with the N191.33 billion (DPS: N9.4) paid in the earlier 12 months.
An additional examine additionally reveals that the corporate paid 89.4% of its revenue for the 12 months to its shareholders as dividends.
MTN Nigeria additionally posted spectacular numbers as its revenue after tax jumped by 45.5% from N205.2 billion recorded in 2020 to N298.65 billion in the evaluate 12 months. The ultimate dividend per share of N8.57 was paid to its shareholders on 28 April 2022.
Zenith Bank – N97.33 billion
Tier-1 banking large, Zenith Bank declared a complete dividend per share of N3.1k for the monetary 12 months ended December 2021, representing a 3.3% enhance in comparison with N3.0k paid in the earlier 12 months. The dividend fee sums as much as N97.33 billion for its complete 31.39 billion excellent shares listed on the NGX.
The most capitalized financial institution in the native equities market posted a 6.1% development in its revenue after tax from N230.57 billion to N244.56 billion in 2021. Zenith Bank paid 39.8% of its internet revenue to its shareholders as dividends for the monetary 12 months.
However, the corporate was capable of enhance its retained earnings by N85.91 billion to face at N198.36 billion as of December 2021.
The ultimate dividend was paid to its shareholders on April 6, 2022, which was subjected to acceptable withholding tax.
GT Bank – N88.29 billion
The just lately restructured banking large declared a complete of N88.29 billion as dividend for the 2021 monetary 12 months from its N174.8 billion revenue after tax posted in the 12 months. The dividend fee represents 50.5% of the revenue for the 12 months.
An additional breakdown reveals that GT Bank had paid an interim dividend of 30k through the half-year interval of the 12 months, earlier than paying a further N2.7 as ultimate dividends, bringing the whole sum to N3 DPS. This is similar quantity paid in the earlier 12 months.
This is following a decline in the financial institution’s backside line as revenue after tax declined by 13.2% from N201.44 billion posted in 2020 to N174.84 billion in 2021.
The ultimate dividend fee to its shareholders was paid on Friday, April 8, 2022 having been subjected to acceptable withholding tax.
Airtel Africa – N78.37 billion
Airtel Africa declared a complete of $0.05 DPS (interim and ultimate) for the monetary 12 months ended March 2022. Converting utilizing the prevailing alternate price, interprets to N20.85 per share, which sums as much as N78.37 billion.
The telco large and probably the most capitalized firm in the inventory market with over N6.64 trillion in valuation studies its financials in USD. Notably, its revenue after tax skyrocketed by 82% to $755 million in 2021 from $415 million posted in the earlier 12 months.
According to the disclosure launched by the corporate on NGX, the ultimate dividend can be paid on or round 22 July 2022.
The dividend can be paid in US {dollars}, though Airtel Africa plc supply their shareholders the chance to elect to obtain their dividend funds in GB kilos or Nigerian naira by way of forex elections.
Others on the checklist embrace BUA Cement (N46.8 billion), Nestle Nigeria (N40.03 billion), Stanbic IBTC (N38.87 billion), Access Bank (N35.55 billion), and UBA with N34.2 billion.
It is value noting that companies like Industrial and Medical Gases Nigeria, MRS Oil Nigeria, and Trans-National Express voted to offer bonus shares to their present shareholders somewhat than monetary compensation.
Related
https://nairametrics.com/2022/06/02/the-biggest-dividend-paying-companies-in-nigeria-in-2022/
