Listed firms’ dividend payout up, data shows
Malawi Stock Exchange (MSE)-listed firms’ dividends payout for the year ended December 2022 shows a huge jump compared to 2021, with most firms more than doubling their payouts.
Standard Bank plc and National Bank of Malawi plc lead the pack after paying huge dividends to shareholders.
The development, according to market watchers, mirrors the resilience of the listed companies as the performance comes amidst subdued economic performance characterised by high inflation and interest rates and the depressed kwacha.
The data contained in the Nico Asset Managers Limited Monthly Economic Review Report for May, shows that 10 counters increased dividend payouts while two maintained their dividend payout and two counters did not pay any dividend.
The data shows that stocks in the banking and agricultural sector were the highest paying in terms of dividends per share while those in the telecommunications, real estate and tourism sectors showed a mixed performance.
Speaking in an interview yesterday, Stockbrokers Malawi Limited chief executive officer Noel Kadzakumanja said the development is not only for investors who have received more, but for the market as it increases confidence in the market.
He said: “Companies’ performance improved last year and the expectation was that this would also benefit the investor which essentially has.
“The feat comes regardless of the tough economic environment which shows the resilience of the companies.”
Kadzakumanja said they expect that this trend will continue and benefit the investors while building confidence in the 16-counter MSE.
Minority Shareholders Association of Listed Companies secretary general Frank Harawa in interview yesterday expressed satisfaction with the performance of the companies and their commitment to increase dividends.
He said: “We are coming from a period where Covid-19 struck hard and dividend payout for most firms was a challenge.
“The significant jump we have seen this year from the positive performance that firms recorded last year is very exciting.”
Harawa said they are in the business of making money, as such, they invest to see the fruits of their labour.
Data shows that Standard Bank plc was the highest paying counter at K85.32 per share, a jump from K37.07per share paid in respect of the company’s 2021 performance.
National Bank of Malawi plc came second, with dividend jumping by 43 percent from K49.26 in 2021 to K70.67 per share in 2022.
Shareholders of Illovo Sugar (Malawi) plc will receive dividend per share of K21, a rise from last year’s K18 while that of Nico Holdings plc will recieve a dividend per share of K6 from K3.25 last year.
National Investment Trust Limited shareholders will get a dividend per share of K3.15 from K2.85 last year, with FDH Bank plc shareholders getting K3.15 from K1.48 per share last year while NBS Bank plc dividend per share jumped to K3.30 from K1.53 last year.
The data, however, shows that TNM plc and Sunbird Tourism plc did not pay any dividend while Airtel Malawi plc dividends for the period dropped from K2.95 to K2.50.
