Malawi Stock Exchange (MSE)- listed companies have paid out K227 billion in dividends to shareholders in respect of 2024 profits.
Market analysts have said the development is a sign of market maturity.
This means that the dividend for 16 listed companies increased by 34 percent from the previous year’s K171 billion.
The dividend pay-out follows a jump in the cumulative profits of the firms from K440 billion in 2023 to about K700 billion during the year ended December 2024, according to figures provided by MSE.
Twelve companies increased their dividend pay-out, two maintained the dividend paid out the previous year while two did not pay dividends due to various reasons.
In an interview yesterday, MSE chief operating officer Kelline Kondowe said the development highlights the significant value of the stock market, adding that it is a manifestation of the potential the market poses to the country’s economy.
She said: “This is good news for shareholders and is a testament of the value creation opportunities that the stock market presents.
“As Malawi Stock Exchange, we are happy with the performance of the market in terms of the returns, but also the dividend pay-outs that we have seen.”
Stock market investor Benedict Nkhoma said the hefty dividend means that companies are generating enough profits to beat inflation, which is currently at 30.5 percent.
He said: “This is a positive sign as shareholders can still afford what they used to afford in the previous year.
“What is more interesting is that capital gains are even much more at 55 percent, which means that shareholder value has been preserved and grown.”
On his part, Minority Shareholders Association of Listed Companies secretary general Frank Harawa said in an interview yesterday that stock market investors have benefited from good dividends, attributing the situation to the market’s good regulatory environment.
“We are happy to see these dividends, which are in excess of quarter a trillion. We believe that this trend would impact positively on the growth of these companies,” he said.
Stock market investor Purity Chitalo said the huge dividends pay-out confirm the viability of investing on stock market, adding that the market provides long-term good investment rewards.
“A growth in profits offer listed companies opportunities for business expansion, acquisition of new technology and improved staff welfare and at the same time shareholders’ well-being will improve for the better,” he said.
MSE chief executive officer John Kamanga earlier said the market has continued to exhibit resilience and strong performance in recent years despite the country’s economy tanking.
He said these achievements highlight the strength, resilience and potential of the country’s capital market as a platform for creating sustainable wealth and fostering economic growth.
During the year under review, the financial sector led by five banks led in the payment of dividends.
