Brighter times ahead as NSE firms end two-year dividend drought
By John Otini, January 6, 2022Nairobi Securities Exchange (NSE) listed firms are set to mark the end of a near two-year dividend drought with fresh payments that could whet the appetite of investors back to the bourse.
Unlike the end of 2020 when most top firms including banks recalled dividends. It was only Safaricom that borrowed money to pay dividends to shareholders.
However, towards the end of 2021, most banks, manufacturers and energy sector firms have announced dividends while some have paid shareholders.
KCB Group announced a dividend of Sh1 a share to be paid on January 14, 2021, while Stanchart already paid shareholders Sh5 interim dividend on December 29 last year.
This points out that shareholders in the banking sector are back on track and are set to get their annual payouts to cushion them from inflation.
Analysts note that the payment of dividends return at time when shares are undervalued making the shares even more attractive to investors as they present opportunities for capital appreciation.
Full-year earnings
“At the moment, we are seeing counters in which we can take advantage of high dividend yields due to reduced prices.
We expect to see price growth early this year when these companies announce their full-year earnings and dividend payouts,” said analysts at Abojani Investments.
In the energy sector, Kengen has announced a final dividend of Sh0.5 per share as the payout is set for February 10th this year.
Kengen which suffered cashflow hitches due to late payments by Kenya Power is also showing that its finances are improving by rewarding its investors.
Carbacid Investments is also among the winners of last year and has paid investors a total dividend of Sh1.60 per share.