As Companies continue to declare their audited result for the financial year ended December 2016 on the Nigerian Stock Exchange (NSE), 11 companies have declared dividend of N338.13 billion.
Dividend is a distribution of a portion of a company’s earnings decided by the board of directors to a class of its shareholders. Returns on investments such as bonuses and dividend payments by quoted firms remain a key attraction to shareholders as they usually look up to what various companies have to offer at the end of every financial calendar.
According to LEADERSHIP, Dangote Cement Plc is to pay the largest amount of N144.85 billion, representing N8.50 per share. Zenith Bank followed with a total dividend payout of N63.42 billion, representing N2.02 per share, while Guaranty Trust Bank Plc announced N58.8 billion dividend for the year ended December 31, 2015, as shareholders get N2 per share.
Other companies that declared dividend are, Access Bank with 28.28 billion, Nigerian Breweries Plc with N28.39 billion, Nestle Nigeria Plc with N7.3 billion, United Capital with N28.39 billion, African Prudential with N600 million, Vitafoam with N12.5 million, Grief Nigeria with N25.58 million and Transcorp Hotel with N3.04 billion.
Although, the payment of these dividends are subjected to shareholders’ approval at their various annual general meeting s of the companies, more dividends are expected from many companies who are yet to announce their financial reports for 2015 period. Companies that have their yearend December 2016 are expected to turn in their financial year report before the end of this month.
Managing director, Alangrange Securities Limited, Mr Samson Amede, said, “So far a few companies have declared their results, for example Nigerian Breweries declared dividend of N2.58 per share, Zenith Bank N1.77 final dividend, Access Bank gave 40 kobo final dividend and Dangote Cement proposed a dividend payout of N8.50 among others.
He stated that the true of this is that it is just a few that was impressive or above exceeded market expectation and that is the like of Zenith Bank which gave N1.77, all others’ performance were as they are expected, given the present situation.
“Although the results has not really impacted on the market like Zenith Bank, whose share should have reflected the good performance but the share price keep on dropping. The behavior of the entire market is weighing on the companies that have perform very well.
“In the time past, this period supposed to be a remarkable improvement in the market in order word the market should be on the upbeat with all the results coming in but so far this has not happened but there are several more results yet to be declared,” he said.
Amede pointed out that. “Going by what we have seen so far this may be an indication nothing spectacular should be expected by the others companies result.”
The chief relationship officer of Foresight Securities Limited, Mr Charles Fakrogha added that this is a period the stock market will be witnessing turnout of 2016 audited results from most of the quoted companies.
Managing director of Highcap Securities Limited, Mr David Adnori also noted that “The performance seen in the market so far is like a mix green, some have increased, like Zenith Bank, United Capital higher than what they paid last year, while some have declined like Nestle.
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