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Markets

Dangote Cement pays N1.1 trillion in dividends in 5 years.

Dangote Cement has paid more dividends to shareholders in the last five years than any other listed entity on the Nigerian Stock Exchange.

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Aliko Dangote rallies private sector operators against COVID-19, 10 fantastic things Aliko Dangote has done in the last 10 years

Africa’s leading cement manufacturer, Dangote Cement has recommended a total dividend payout of N272.65 billion from the profits made in 2020.

According to data from Nairalytics, the research arm of Nairametrics, the cement behemoth has now paid a total of about N1.14 trillion in dividends since 2016.

Dangote Cement is majority-owned by Dangote Industries Limited (DIL) with about 85% ownership of the outstanding shares of the company. Africa’s richest man, Aliko Dangote owns nearly all of DIL. Thus, we estimate over 90% of the dividends paid over the last 5 years were paid to the billionaire investor.

Findings by Nairametrics also indicate most of the funds are used to service debt obligations of the group while also used to fund other major projects such as the Dangote Refinery.

READ: Dangote’s net worth declines by $1.2 billion in February

Dangote Cement dividend in the last 5 years versus profits.
Source: Nairalytics

Strict Dividend Policy

The company has maintained a regular dividend of N16 per share in the last three years and a dividend payout ratio that averages 99% over the last 5 years with 2019 being the highest with about 136% in the dividend paid out of profits.

  • The dividend payout ratio for 2020 was 99% meaning it basically paid out all the profits it earned.
  • Total profits earned since 2016 is about N1.2 trillion thus over the last 5 years it has paid out 95% of all its profits as dividends.
  • Dangote Cement is currently valued at about N3.8 trillion and boasts of strong retained earnings of N779 billion, despite paying out nearly all its dividends in the last 5 years.
  • During this period, we estimate the company has paid about N181 billion in taxes.

READ: Dangote’s stakes in his sugar enterprise has earned him N90 billion in 365 days

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What you should know

Dangote Cement’s topline revenue rose from N615.1 billion in 2016 to N1.04 trillion in 2020, while the company’s production capacity has expanded from 42.55 million mtpa to 48.55 million mtpa in 2020.

  • Despite being the industry leader is yet to utilize its robust manufacturing infrastructure to full capacity, n0ting that about 25.72 million mtpa of cement and clinker and products were sold in 2020.
  • Focusing on price appreciation, the shares of Dangote Cement from the price of N127.06 per share on February 1st 2016, are worth about 77% more in recent times, as the market value of the shares of the leading cement maker is currently put at N225 per share.

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Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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Cryptocurrency

Dogecoin up 168%, more valuable than Polkadot, Cardano

The fast-rising crypto at the time of writing traded at $0.359439 with a daily trading volume of $63.5 billion.

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Dogecoin (DOGE), once again, shocked traders, investors and many crypto analysts by gaining over 200% to flip Cardano and Polkadot, becoming the sixth most valuable crypto asset by market value.

The fast-rising crypto at the time of writing traded at $0.359439 with a daily trading volume of $63.5 billion.

Dogecoin is up 167.95% for the day on the FTX exchange. The dog meme crypto is now the 6th most valuable crypto with a market value of $46.4 billion.

READ: Bitcoin miners are consistently earning $50 million daily

Recent data from Coinmarketcap reveal it has a circulating supply of 129,210,007,256 DOGE coins and the maximum supply is not available.

Market pundits argue that the credence of the world’s leading billionaires might have given the fast-rising crypto enough support amid the recent price correction ongoing in the flagship crypto market. These two individuals are Elon Musk and Mark Cuban.

A leading crypto social analytic firm revealed the altcoin has the highest number of activities in the past 18 hours and social mentions of over 410, 0000, thereby making it the most popular crypto on social media.

READ: Crypto market surges above $2 trillion, as Bitcoin stages a huge comeback above $60,500

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Dividends

SEC accuse CMOs of frustrating e-dividend mandate process

The DG of SEC revealed that 4.01 million accounts still have incomplete KYC information as of April 8 despite the government’s efforts.

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Unclaimed dividends: SEC wades in, reduces processing time to 1 week for beneficiaries

The Securities and Exchange Commission (SEC) has faulted the activities of some Capital Market Operators (CMOs) which frustrates the e-dividend mandate process, leading to a rise in unclaimed dividends in the capital market.

This is as the unclaimed dividends in the capital market were estimated to have risen to over N200 billion.

According to a report from the News Agency of Nigeria (NAN), this disclosure was made by the Director-General of SEC, Lamido Yuguda, while speaking at the 2021 first post-Capital Market Committee (CMC) virtual news conference.

READ: Why SEC should support democratization of sale of foreign securities

What the Director-General of SEC is saying

Yuguda, in his statement, said that the commission was aware that some CMOs were frustrating the e-dividend mandate process.

He said, “We implore all stakeholders to comply with all directives of the Commission in this regard, as defaulters would be sanctioned appropriately. We have observed that the growth in the number of mandated accounts has been on the decline for some time.

The capital market community has directed its e-Dividend Committee to engage with the Committee of Heads of Banking Operations to encourage better cooperation from banks as we tackle the challenges of unclaimed dividends.’’

READ: Shareholders move against FG’s establishment of unclaimed dividend trust fund

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The SEC boss reminded all CMOs that the commission’s directive on the update of investors’ Know Your Customer information was still in effect noting that the level of compliance had been low in spite of several engagements by the commission.

Yuguda revealed that 4.01 million accounts still have incomplete KYC information as of April 8 despite the government’s efforts.

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He said, “Despite several engagements, we realised that as of April 8, there were still 4,012,311 accounts with incomplete KYC information. This exercise is critical to deepening the participation of retail investors and we direct all CMOs to accord it the highest level of priority.’’

READ: SEC adjusts operations, introduces e-filing, other measures

In case you missed it

  • SEC had earlier urged all Capital Market Operators (CMOs) to update their investors’ Know Your Customer information due to the low level of compliance.
  • The CMOs were also warned by SEC to stop providing any form of support to unregistered entities operating unlawfully in the country within the capital market as that would not be condoned.

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