Market sentiment improved significantly throughout last week following the announcements of more mouth-watering dividends for investors, BusinessDay Dividend Monitor 2019 computed by BusinessDay Research and Intelligence Unit (BRIU) shows.
As at the close of business last week Friday, total proposed dividends rose to N499.97 billion from N371 billion in the previous week. The increase in the proposed dividends came from Nestle Nigeria, GTB, Stanbic IBTC, Seplat Petroleum and McNichols Consolidated.
Nestle Nigeria has proposed N38.5 final dividend per share for the financial year ended December 31, 2018 and upon approval by its shareholders, will bring the total dividend paid in 2018 to N58.50 per share having earlier paid N20 interim dividend. The current corporate action represents 244 percent increase over N15 dividend per share paid in 2017. The food and beverages giant, Nestle posted N266.3 billion revenue in 2018 as against N244.2 billion revenue the company made in 2017.
Operating profit rose by 8.9 percent from N55.69 billion in 2017 to N60.6 billion in 2018. Profit before income tax rose to N59.8 billion from N46.8 billion, an increase of 27.6 percent during the period.
Total comprehensive income for the year was N43 billion, which was 27.5 percent higher than N33.72 billion it realised in the preceding year. Nestle Nigeria increased its corporate social responsibility fund (CSR) by over 1500 percent from N2.09 million in 2017 to N33.96 million in 2018. Beneficiaries of its kind gesture included Nestle for Healthy Kids School rehabilitation project in Ogun State which gulped N13.52 million, Nestle for Healthy Kids rehabilitation project in Abaji which gulped N10.645 million and Community water projects in Flowergate which attracted N9.8 million. The register of members will close on May 13, 2019 while its AGM will come up on May 28, 2019.
Guaranty Trust Bank (GTB) has proposed N2.45 final dividend per share for the full year ended December 31, 2018. This brought its total dividend for 2018 to N2.75 per share having earlier paid N0.30 interim dividend. This compares with N2.70 total dividend per share paid in 2017.
GTB’s 2018 interest income declined to N306.96 billion compared with N327.33 billion made in the previous year. A 4.8 percent increase in interest expense from N80.67 billion in 2017 to N84.53 billion in 2018 caused a 9.8 percent slide in net interest income which fell to N222.43 billion from N246.66 billion in 2017.
Interestingly, fee and commission income rose to N52.4 billion in 2018 in contrast to N42.9 billion realised in 2017. Net fee and commission income increased to N50.47 billion up from N40.73 billion in 2017. Profit before tax for 2018 was much better at N215.59 billion in contrast to N197.69 billion made in 2017. Profit for the year rose by 9.96 percent from N167.9 billion in 2017 to N184.6 billion in 2018.
In the course of the year, community and corporate social responsibility projects gulped N928.08 million up from N687.1 million expended on similar projects in 2017. The African Drum Festival and Art 635 Gallery were the major beneficiaries o f the arts CSR projects in 2018. Also, the Africa Centre Development, Orange Cycle Initiatives, Orange Ribbon-Autism Project, Simple Change Impact and the Swiss Red Cross Partnership topped the list of GTB’s 2018 community projects. And in education CSR, the annual Principals’ Cup and Financial Inclusion were the major beneficiaries.
Stanbic IBTC has proposed to pay N1.50 final dividend for the financial year 2018, an improvement over N1 that was paid in 2017. Gross earnings rose by 4.67 percent from N212.4 billion in 2017 to N222.36 billion in 2018. Net interest income fell to N78.2 billion in 2018 down from N83.6 billion in 2017. Non-interest revenue boosted IBTC’s profitability, rising by 15 percent from N89.2 billion in 2017 to N102.6 billion.
Profit for the year rose to N74.44 billion in 2018 up from N48.4 billion in 2017. Corporate social responsibility projects gulped N233.4 million in 2018 down from N436.6 million in 2017. The major beneficiaries were Deeping Financial Inclusion, N35 million; Lagos State Security Trust Fund, N35 million and the Global Fund for the eradication of Malaria, HIV/AIDS and Tuberculosis, N21.8 million.
Seplat has proposed $0.05 final dividend per share for the financial ended December 31, 2018 just as McNichols will be paying its shareholders N0.05 final dividend per share.
Meanwhile, more than 43 stocks have appreciated by different degrees year to date. C & I Leasing still tops with 308.4 percent year to date gain. Others are Dangote Flour, 52.6 percent; Royal Exchange, 45.5 percent; Ikeja Hotel, 39.2 percent; Cutix, 37.2 percent among others.
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