Shares of Chemical and Allied Products Plc, a major manufacturer of standard and premium paint products, gained N1.4 billion in today’s trading session, as shares of the company surged by 10% Tuesday being the threshold any stock can gain on the NSE in a single trading session.
The N1.4 billion gain in the market capitalization of the paint maker today can be linked to the Board’s decision to pay shareholders a dividend of N2.1 per share for the first time since 2019.
READ: CAP Plc set to merge with Portland Paints and Products Plc.
The news of the dividend sent shares of CAP Plc flying by a whopping 10% as investor scamper for the shares thus driving the price higher towards the 52-week high price of N24.50 per share.
Data tracked on the website of NSE revealed that the market capitalization of the paints producer jumped by N1.4 billion, from N14 billion at market open, to N15.4 billion at the close of market, the 23rd of March 2021.
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What you should know
- At the close of trading activities today, the NSE All-Share Index and market capitalization depreciated by -0.05%, to close the day at 38,704.97 index points and N20.25 trillion respectively.
- While the NSE Industrial index to which CAP Plc belongs, appreciated by 0.11% to close the day at 534.12 index points.
- Nairametrics reported that the Board of CAP Plc proposed a total of N1.47 billion to the shareholders of the company as dividend for the period ended December 31, 2020.
- The N2.1 per share dividend is 27.6% lower than the N2.90 per share dividend that the company paid to shareholders in 2019 from the profits it made in 2018.
- At the current price of N22 per share, the dividend yield of the company stands at 9.1%.
Nothing has been reported about the company’s financial statement. Kindly share the audited financial statements