Companies listed on the Nigerian Exchange (NGX) have declared total dividend payouts exceeding N1.5 trillion for the fiscal year 2023.
The exceptional dividend payout was driven by impressive earnings reported by banks and the strategic use of reserves by some companies to distribute dividends.
Nairametrics has analyzed the dividend announcements for the 2023 financial year ( FY) and compiled a ranking of the top 10 Nigerian companies with the highest total dividend payouts and dividends per share.
- Lafarge Africa – N30.6 billion
Lafarge Africa Plc is to pay a total dividend of N30.6 billion for FY 2023, based on a total dividend of N1.9 per ordinary share. For 2022, Lafarge paid a dividend of N2 per share, distributing a total dividend of N32.2 billion.
The group reported a net income of N51.1 billion as of FY 2023, representing a 4.7% decline from the N53.6 billion net income posted in 2022. And for FY 2023, the group’s dividend payout ratio was 59.8%, slightly below the 60% dividend payout ratio for 2022.
- BUA Cement – N67.7 billion
BUA Cement is to pay a total dividend of N67.73 billion for FY 2023, marking a dividend of N2 per ordinary share. This represents a 29% decline from the N94.8 billion total dividend payout posted in 2022 as the company paid a dividend of N2.8 per ordinary share during the year.
BUA Cement posted a net income of N69.5 billion for FY 2023, representing a 31% decline from the N101 billion net income posted by the company in 2022.
However, the company’s dividend payout ratio for FY 2023 is 97.5%, marking an improvement from 2022’s dividend payout ratio of 93.9%
- Access Holdings – N72.3 billion
The banking group, Access Holdings Plc, posted a total dividend payout of N72.3 billion, based on a total dividend of N2.1 per ordinary share. This marks a 40% increase from the N1.5 per ordinary share paid as total dividend in 2022.
The group recorded a net income of N619.3 billion as of FYE 2023, thus marking a dividend payout ratio of 11.7%.
For FY 2022, the group paid a total dividend of N51.65 billion, representing a payout ratio of 33.8% based on a net income of N152.9 billion.
- Seplat Energy Plc – N85.5 billion
Seplat Energy Plc is one of the two companies on the NGX that announced its dividend payment in US dollars, the other being Airtel Africa Plc. The company is to pay a total dividend of N85.47 billion for FY 2023, based on its Q1, Q2, and Q3 interim and Q4 final and special dividends of 3 US cents per share respectively.
For Q1 2023, Seplat opted to use an exchange rate of N465.04/$, translating into a payment of N13.95 per share thus amounting to N8.21 billion. In Q2 2023, the company opted for an exchange rate of N759.86/$, translating to N22.8 per share and a payout of N13.4 billion.
Seplat opted for an exchange rate of N996.75/$ for the Q3 interim dividend translating to N39.30 per ordinary share, and a payout of N23.1 billion. For Q4 2023, the company opted to use N1309.88/$ for its final and special dividend, thus amounting to a payout of N46.25 billion. In 2023, Seplat Energy distributed a total dividend of N85.5 billion to its shareholders.
- United Bank for Africa – N95.8 billion
UBA Plc will distribute a total dividend of N95.8 billion for the 2023 financial year. This includes an interim dividend of N0.50 per share for the first half of 2023 and a final dividend of N2.30 per share for the full year, resulting in a total dividend of N2.80 per share. This represents a significant appreciation from the N1.10 total dividend paid for FY 2022.
The group’s dividend for FY 2023 represents a 154.5% increase from the N37.6 billion paid for FY 2022.
The group posted a net income of N607.7 billion as of FY 2023, marking a dividend payout ratio of 15.76%. However, in contrast with 2022, the group posted a net income of N170.3 billion, marking a dividend payout ratio of 22.1%.
- GTCO Holdings – N97.1 billion
GTCO Holdings paid a total dividend of N97.1 billion for FY 2023, as the group doled out N0.5 per share for the first half (H1) of 2023 interim dividend and N2.7 per share as FY 2023 final dividend. This marks a 10% increase from the N88.3 billion total dividends paid for FY 2022, when the bank paid a total dividend of N3.1 per share.
GTCO Holdings posted a net income of N539.7 billion for FY 2023, marking a 219% increase from the N169.2 billion net income reported for 2022. For FY 2023, the group’s payout ratio was 18%, in contrast with 52.2% as of FY 2022.
- BUA Foods Plc – N99 billion
BUA Foods Plc paid a total dividend of N99 billion for 2023 based on a total dividend of N5.5 per share, marking a 22.2% increase from the N81 billion total dividend paid for FY 2022 (FY 2022: N4.5 per ordinary share).
The group posted a net income of N112.1 billion for FY 2023, representing a 22.7% increase from the N91.3 billion net income posted in 2022. The group’s dividend payout ratio for 2023 is 88.3%, almost like the dividend payout ratio of 88.7% for 2022.
- Zenith Bank Plc – N125.6 billion
Zenith Bank posted a total dividend of N125.6 billion for FY 2023, based on a total dividend of N4 per share – N0.5 for interim dividend and N3.5 per share for final dividend. The group posted a net income of N676.9 billion in 2023, representing a 202% increase from the N224.05 billion posted in 2022.
Zenith Bank’s distributed dividends for FY 2023 was a significant appreciation from the N100.5 billion distributed for FY 2022 when the bank paid a total dividend of N3.2 per share.
The group’s dividends for 2023 represented a dividend payout ratio of 18.56%. This was in contrast with a dividend payout ratio of 44.8% from 2022 when the total dividend paid was N100.5 billion.
- Airtel Africa Plc – N252.4 billion
Airtel Africa will pay a total dividend of $0.0613 per share, representing an interim dividend of 2.38 US cents per share and a final dividend of 3.75 US cents per share. In contrast, the group paid a single dividend of 3 US Cents per share for the previous fiscal year, amounting to $122.9 million.
For the interim dividend, Airtel Africa chose N858.24/$ as the exchange rate for the Naira payout, resulting in an interim dividend payout of N76.48 billion.
Despite posting a loss of tax of $89 million, Airtel announced a final dividend of 3.75 cents for the year ending March 31, 2024. The exchange rate for those electing to receive the dividend in Naira has not been made public.
However, adopting the exchange rate of N1309.39/$, the final dividend payout will amount to N175.7 billion, thus taking the total dividend payout to N252.4 billion.
Despite posting a net loss of $89 million for the fiscal year, the group’s total reserves and surplus of $285 million allow it to undertake such dividend payments.
- Dangote Cement Plc – N511.2 billion
Dangote Cement, for the consecutive time, is the highest dividend-paying company in Nigeria, with a total dividend payout of N511.2 billion for FY 2023. The group posted a net income of N455.6 billion during the year, marking a 19% increase from the N382.3 billion reported in 2022.
For FY 2022, Dangote Cement paid a total dividend of N20 per share, amounting to N340.8 billion in distributed dividends.
For FY 2023, Dangote Cement posted a dividend payout ratio of 112.2%, marking the highest dividend payout ratio in the NGX. Dangote Cement possesses currency translation reserves of N625.16 billion and revenue reserves of N1.099 trillion, indicating that the group has ample reserves to facilitate dividend payouts.
What you should know
Despite the strong earnings by banks in 2023, non-banking companies have outperformed them in dividend distribution. This is a phenomenon driven by banking regulations that require banks to create different strategic reserves that can serve as buffers to mitigate any potential economic shockwave.
In terms of dividend payout ratio, Airtel Africa’s use of its strategic reserves to distribute dividends as well as carry out its share buyback programme puts it at the top of the table.
Dangote Cement with a dividend payout ratio of 112% is another stellar dividend-paying stock. With a dividend payout ratio of 97.5%, BUA Cement also ranks favorable, as BUA Foods also features prominently based on its dividend payout ratio of 88.3%.
Seplat’s frequency of dividend payment is also unique in the industry as it offers investors revenue streams that compensate for the eroding nature of the time value of money.
Other notable mentions in terms of dividend payout include Presco Plc and Okomu Oil Plc, which recorded dividend payouts of N26.3 billion and N17.65 billion respectively. Both companies have dividend payout ratios of 80.47% and 87.3% respectively.
