Despite Economic Headwinds, Dangote Cement, MTN, 6 Others’ Dividend Up 29% to N827.05bn

Despite Economic Headwinds, Dangote Cement, MTN, 6 Others’ Dividend Up 29% to N827.05bn

MTN AND Dangote Cement Kayode Tokede

Despite economic challenges, investors’ in the Nigerian capital market has continued to enjoy mouthwatering return on investment as most highly capitalised declares improved dividends.

For instance, Dangote Cement Plc, MTN Nigeria, Zenith Bank Plc, among five other companies listed on the Nigerian Exchange Limited (NGX) have proposed a total dividend of N827.05billion for 2021 financial year.

The proposed dividend is an increase of 29 per cent when compared to N639.25billion paid out by these companies in 2020 financial year.

The other companies are Guaranty Trust Holding Plc (GTCO), United Bank for Africa Plc, Lafarge Africa Plc, Dangote Sugar Plc and United Capital Plc.

THISDAY analysis of results released to the NGX showed that the eight companies reported a total N1.27 trillion profit in 2021 financial year from N1.08 billion reported in 2020.

Leading the pack is Dangote Cement with about N364.44 billion profit in 2021 from N276.07billion in 20202 and proposed a dividend of N340.81billion in 2021 from N272.65billion proposed in 2020.

This represents a dividend of N20 per unit of 50 kobo ordinary share from N16.00 per unit proposed in 2020. Based on its current stock price of N273.5, Dangote Cement’s dividend yield is about 7.3 per cent.

With about N298.65 billion profit in 2021 from N205 billion in 2020, MTN Nigeria for 2021 financial year proposed dividend of N212.7 billion from N133 billion proposed to investors for 2020 financial year.

The telecommunication giant in 2021 proposed N4.55 interim dividend (2020: N3.50 kobo per share) and final dividend of N8.57kobo per 2 kobo ordinary share, bringing the total dividend for 2021 financial year to N13.12 kobo from N9.5kobo total dividend paid to shareholders in 2020.

Of the listed banks, Zenith Bank, the most profitable financial institution proposed N97.32 billion total dividend for the financial year 2021, translating to N3.01 per share, after getting shareholders to agree to a dividend payout of N87.91 billion for the second half of the year, which translates to N2.80 per share.The bank had earlier paid an interim dividend of N0.30 per share totaling N9.4 billion for the first half of the year. It paid shareholders N3.0 per share, summing up to N94.19 billion in 2020.Zenith bank reported N244.4 billion profit in 2021, from N230.6 billion reported in 2020 and it becomes the highest profit ever declared by a listed bank in Nigeria.Last year’s profit growth rate was, however, the slowest since 2016. The bank’s profit grew at […]

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