ACCORDING to analysts, earnings aren’t reflected in market performance.
From the fiscal year 2021 onwards, investors are expected to receive about N780 billion in dividends. So far, 16 firms from seven industries – consumer goods, financial services, industrial goods, oil and gas, services, healthcare, and information technology – have set aside N782.192 billion in final dividends from last year’s operations.
Vitafoam paid N1.876 billion, or N1.5 per share, in the consumer goods sector, while Dangote Sugar Refinery recommended a final dividend of N12.147 billion, or N1 per share, and Nestle Nigeria declared a N20.213 billion dividend, or N25.5 per share.
The dividends for NASCON Allied Industries and Nigerian Breweries would be N1.06 billion and N9.691 billion, respectively, representing 40 kobo per share and N1.2 per share.
United Capital, African Prudential, Guaranty Trust Holding Company (GTCO), Zenith Bank, and United Bank for Africa (UBA) shareholders would receive a total dividend of N9 billion, N1 billion, N79.464 billion, N87.91 billion, and N27.36 billion, respectively, in the financial services sector. In that order, N1.5 per share, 50 kobo per share, N2.7 per share, N2.8 per share, and 80 kobo per share
Also in the industrial goods sector, Dangote Cement and Lafarge Africa recommended a final dividend of N340.82 billion, or N20 per share, and N16.108 billion, or N1 per share.
Transcorp Hotels announced a dividend of N716.977 million, or seven kobo (N0.07) per share, whereas Seplat Energy directors proposed a dividend of $0.426 per share (for a total of N250.677 million).
MTN Nigeria Communications (MTNN) announced a final dividend of N8.57 per share, equivalent to N174.44 billion, while Neimeth International Pharmaceuticals recommended a final dividend of N132.941 million, or seven kobo (0.07) per share.
Dividend-paying companies are crucial to investors for a variety of reasons, according to market professionals. Garba Kurfi, Managing Director/CEO of APT Securities and Funds Limited, praised listed firms for their strong performance but voiced worry that declared dividends have not been reflected in the stock market’s performance.
These firms have declared impressive dividends to investors, according to him, but “I don’t know why the stock market did not respond to dividend payouts by Dangote Cement, Zenith Bank, and others.”
“The likes of GTCO and UBA released their audited accounts after the close of trading last week, I am yet to see stock price appreciation. Lafarge Africa, last year, was trading at N31 and declared N1 per ordinary but this year. The company declared N2 this year while trading at N24 per share. The dividend by these companies has not been reflected in our domestic market.”
According to him, the exchange’s objective for 2022 is to maintain the momentum it has gained in its digital transformation throughout value chains. He went on to say that the company’s listings and items or offerings might be digitized.
“This is important because the belly of the Nigerian demography is huge and the exchange currently, represented by older people, needs the young generation. And to bridge that gap, technology is needed,” he said.
Popoola said the exchange is trying to diversify listings across foods, power, and agriculture to have a presence across multiple sectors, while expressing confidence that few listings will take place on the NGX platform.
The NGX CEO went on to say that the exchange will work with the Securities and Exchange Commission (SEC) to create a NASDAQ-style board.
