NASCON P Business/MONEY
It was not business as usual for salt makers, NASCON Allied Industries Plc, during the financial year ended December 31, 2018, as revenue and profit slumped rather than surpass the records of the preceding financial year. But despite the shortfall in earnings, the company has decided to stick to its tradition of putting smile on the faces of its shareholders with about 60 per cent of its net profit earmarked to be paid out to shareholders as dividend at its annual general meeting scheduled to hold in Lagos in June, reports Bamidele Famoofo
Return on Investment
Salt and seasonings manufacturers, NASCON Allied Industries Plc certainly did not meet the expectations of the investing public and perhaps shareholders with respect to earnings growth in the financial year ended December 31, 2018. But shareholders confidence in the ability of the management to continue to deliver to them good return on investment (RoI), was not betrayed.
Even when shareholders are expected to get less dividend than they got for their investment in the company in the financial year ended December 31, 2017, the payout being proposed by the Board of Directors of NASCON for 2018, would rank among the best any company quoted on the Nigerian Stock Exchange (NSE) could pay in the financial year.
Secretary of NASCON Plc, Mr. Adebayo Samuel, disclosed that the board of directors of the company was proposing to release N2.65billion from retained earnings to be shared to shareholders as dividend at the annual general meeting scheduled to hold in June. The amount which translates to N1.00 dividend per share represents about 60 per cent of the company’s earnings in the review audited financial year.
The proposed cash payout represents a 5.50 percent dividend yield for shareholders. That is not obtainable on savings account domiciled with any bank in Nigeria. And regardless the gains from capital appreciation, an investor who invested N1million in the company for 12months will get N55, 000 interests from dividend.
Since the company was acquired by Dangote Industries Limited in 2006, record shows that it had adhered strictly to its policy of robust dividend payment as shareholders have enjoyed increment in dividend in the last 12 years. Dividend has increased from N0.40 per share in 2007 to N1.50 per share in 2017 with the exception of 2014, when it dropped to N0.50 per share from N0.90 per share in 2013. The 2018 financial […]