AIICO Insurance Plc has declared a final dividend of 0.06 kobo per share of ordinary share of 50 kobo each.
Come Monday, May 20, 2019, the dividends will be paid electronically to shareholders whose names appear on the Register of Members as at Thursday, May 9, 2019.
Only shareholders who have completed their e- dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts will receive payment.
The dividend payment is subject to appropriate withholding tax and approval, will be paid to shareholders whose names appear in the Register of Members.
The Register of Shareholders will be closed from Friday, May 10 to Friday, May 17, 2019. In the meantime, the Qualification Date has been scheduled for Thursday, May 9, 2019.
A dividend is a payment made by a company to its shareholders, usually as a distribution of profits. When a company earns a profit or surplus, it reinvests a portion of the profit in the business (retained earnings) whilst paying a portion as dividends to the shareholders.
Distribution to shareholders may be in cash (usually a deposit into a bank account) or the issuance of further shares, otherwise known as shares repurchase. But this is usually if the company has a dividend reinvestment plan.
In other words, a dividend is allocated as a fixed amount per share with shareholders receiving a dividend in proportion to their shareholding. For the joint-stock company, paying dividends is not an expense; rather, it is the division of after-tax profits among shareholders.
AIICO Insurance Plc commenced operations in Nigeria in 1963 as an Agency office of American Life Insurance Company (“ALICO”) – at the time, a subsidiary of American International Group (“AIG”).
The Company was incorporated, registered and licensed in Nigeria as American Life Insurance Company Limited – as a wholly owned subsidiary of ALICO/AIG in 1970 to offer Life and Pension products and insurance services.
The company’s stock is currently trading N0.75 on the floor of the Nigerian Stock Exchange (NSE).