Going by history, market analysts have predicted that about five banks might pay interim cash dividends to shareholders as companies continued to released their half-year corporate results ended June 30, 2018.
The banks include: Zenith Bank, United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), Stanbic IBTC and Access Bank. Zenith Bank, in its regulatory filing had indicated that it had scheduled meetings of their directors during which the six-month financial statements would be approved and the payment of an interim dividend, which is subject to the approval of the Central Bank of Nigeria (CBN). Make it with Squarespace Ad All the tools you need for every step of the
way. Make it with Squarespace Squarespace Learn more GTBank, last year paid an interim dividend of 30 kobo per share, Zenith Bank and Access Bank paid 25 kobo half year dividend, UBA last year paid an interim dividend of 20 kobo per share, while Stanbic IBTC Holdings paid 60 kobo as interim dividend.
Analysts noted that the banks have a culture of paying half year dividends and going by the first quarter results, the banks will rewards its shareholders with an interim dividend. This has made investors to begin taking advantage of the low equity prices, particularly of interim dividend paying companies mostly in the banking sector.
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.
Dividend payments allow shareholders to benefit from earnings growth through both interim and final dividends. Interim dividends can follow the same strategy as final dividends, but since interim dividends are paid out before the end of the fiscal year, most financial statements that accompany interim dividends are unaudited.
Post-listing rules at the NSE require quoted companies to submit their audited earnings reports, not later than three months or 90 calendar days after the expiration of the period. For quarterly results, companies are to submit their results not later than one month or 30 days after the expiration of the period. The deadline for submission of half year report for companies with June 30, 2018 was July 31, 2018. Make it with Squarespace Ad All the tools you need for every step of the
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