Amid the harsh operating environment in 2023, 36 others proposed a final total dividend of N3.056 trillion to shareholders.
Distributing dividends is a way for companies to share their profits with their shareholders, typically in the form of cash payments or additional shares.
The year 2023 witnessed upheaval globally and it came with significant headwinds across all emerging markets, among other markets.
For many investors, dividend-paying stocks have come to make a lot of sense in Nigeria given the almost cultural belief that making returns on investment is the essence of engaging in any investment or business plan.
So far, Dangote Cement proposed a dividend of N30 per share or a total of N511.23 billion for the period under review. Zenith Bank offered a total dividend of N109.886 billion, representing N3.50 per share, while BUA Foods paid shareholders a dividend of N5.50 per share or N99 billion.
Guaranty Trust Holdings Company to pay N2.70 per share, amounting to N79.464 billion, United Bank for Africa (N2.30 per share or N78.658 billion), Access Holdings (N1.80 per share or N63.981 billion), BUA Cement (N2 per share or N67.728 billion), Lafarge Africa (N1.90 per share or N30.605 billion), Stanbic IBTC Holdings (N2.20 per share or N28.505 billion), and Geregu Power (N8 per share or N20 billion).
Also, MeCure Industries offering shareholders dividend of 0.15 kobo, amounting to N600 million, Multiverse Mining and Exploration (0.05 kobo or N210 million), Nigerian Exchange Group (75 kobo or N1.473 billion), Africa Prudential (45 kobo or N900 million), Abbey Mortgage Bank (0.04 kobo or N406 million), Trans-Nation Wide Express (0.02 kobo or N9 million), TotalEnergies Marketing Nigeria (N25 per share or N8.488 billion), United Capital (N1.80 per share or N10.8 billion), Julius Berger (N3 per share or N4.8 billion),MRS Oil (N2.36 per share or N809 million), Meyer (30 kobo or N159 million), Infinity Trust Mortgage Bank (15 kobo or N626 million), May & Baker Nigeria (30 kobo or N518 million), CAP (N1.55 or N1.263 billion), and Nigerian Aviation Handling Company (N2.54 or N4.950 billion).
Skyway Aviation Handling Company declared total dividend of N406 million or 30 kobo per share, UACN (22 kobo or N644 million), McNichols (0.02 kobo or N22 million), Beta Glass (N1.40 per share or N840 million), Okomu Oil (N14 per share or N13.355 billion), Berger Paints (80 per share or N232 million), Wema Bank (50 kobo or N6.429 billion), Transcorp Hotel (20 kobo or N205 million), and Transnational Corporation (10 per share or N4.065 billion).
It will be noted that 2023 was a year of two halves when considered from the prism of fiscal and monetary policy actions.
In H1, fiscal imprudence of the past administration, the botched implementation of the naira redesign policy, persistent insecurity and policy misalignments as well as pre-election jitters deteriorated critical macroeconomic variables, debt profile, and inflation rate. In H2, 2023 partial removal of PMS subsidy and realignment of FX rates, all have an effect on the Company’s financial performance for the year under review.
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 increase 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.
He said, “dividend payments provide shareholders with a regular income stream. This can be particularly beneficial for investors seeking steady income, such as retirees or those looking to supplement their salary. Companies that consistently pay dividends demonstrate financial stability and predictability, which can be reassuring for investors, hence, the announcement is coming at a right time when shareholders need it for one thing or the other.”