The Nigerian Aviation Handling Company Plc’s (NAHCO) shareholders have unanimously endorsed the payment of a final dividend of 25 kobo per ordinary share totaling N406 million for the financial year ended, December 31, 2018.
The shareholders approved the dividend payment at the company’s recently-held Annual General Meeting (AGM).
[READ MORE: FY 2018: FBN Holdings Plc declares final dividend of 26 kobo]
Although the dividend had been initially announced by the company, it was subjected to the shareholders’ approval.
What you should know: Going by NAHCO’s dividend history, the company has consistently paid dividends to its shareholders over the past 10 years without failing. Its dividend yield currently stands at 7.81% according to Bloomberg.
Apart from NAHCO’s consistency in dividend payment, the value of the dividends declared fluctuated notably in 2009 and 2010 when the company paid dividends twice. The winning factor for investors, however, is the company’s ability to pay dividends despite harsh economic conditions. That NAHCO has managed to keep afloat during turbulent times has surely sustained the confidence of investors in the firm.
The company’s results: NAHCO Plc recorded N4.8 billion revenue in its fiscal period ended Sunday, June 30, 2019, compared to N4.6 billion in the corresponding period of 2018.
During the period under review, its Profit Before Tax stood at N579.5 million compared to N501 million recorded in 2018, while its Profit After Tax stood at N467.2 million compared to 418.5 million recorded in 2018.
Understanding dividend: 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 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 their bank accounts) or the issuance of further shares, otherwise known as shares repurchase. The latter is usually done if the company has a dividend reinvestment plan.
[READ ALSO: LASACO proposes N0.05 dividend for FY 2018]
