Companies that have declared their 2016 dividends so far

2016 dividends

Over the past two months, a number of listed companies on the Ghana Stock Exchange continue to declare their 2016 dividends to the general public. While others are yet to publish theirs, there is however a few companies that have decided to pay no dividends for the 2016 financial year, mainly due to a drop in their 2016 profits. Among the companies paying no dividends for the 2016 financial year include Tullow Oil Plc (TLW), CAL Bank Limited (CAL), Fanmilk Limited (FML) and Guinness Ghana Breweries Limited (GGBL).

Meanwhile, in the table below, you will find details of the 2016 dividends declared by some listed companies so far.

Company Dividend published date Dividend/share 1Ex-dividend date Dividend payment date
Standard Chartered Bank Ghana Ltd. (SCB) 26th April 2017 GH¢1.12 31st May, 2017 30th June, 2017
Ghana Oil Company Ltd. (GOIL) 25th April 2017 GH¢0.025 16th May, 2017 19th June, 2017
Unilever Ghana Ltd. (UNIL) 24th April 2017 GH¢0.05 8th May, 2017 24th June, 2017
Trust Bank (Gambia) Ltd. (TBL) 24th April 2017 2D 0.30 9th May, 2017 18th May, 2017
Ecobank Ghana Ltd. (EGH) 10th April 2017 GH¢0.82 19th April, 2017 26th May, 2017
Ghana Commercial Bank (GCB) 18th April 2017 GH¢0.38 10th May, 2017 19th June, 2017
Societe Generale Ghana Ltd.  (SOGEGH) 7th March, 2017 GH¢0.033 27th March, 2017 12th May, 2017
Starwin Products Ltd.(SPL) 10th January, 2017 3GH¢0.001 27th January, 2017 28th February, 2017
Anglogold Ashanti (AGA) 15th March, 2017 GH¢0.3634 Not available 10th April, 2017
Anglogold Ashanti Depository 15th March, 2017 GH¢0.003634 Not available 10th April, 2017

Note:

1Investors must buy stocks, at least, one business day before the ex-dividend date in order to qualify for the declared dividend.

2Dalasi (D) is currency of the Gambia. Current exchange rate for today, 1st May 2017 (subject to change) is USD1:D46.00

3 Dividend declared by Starwin Products Ltd. (SPL) is for an interim period (not the full financial year).

Dividend payments of selected stocks on the Ghana Stock Exchange

dividend payments

Honestly, there is one particular sentence I always love to come across in the annual reports of listed companies. It goes like:

The directors have recommended a dividend of GH¢… for the year ended…

As some of you may be already aware, a number of listed companies distribute portions of their earned profits to their shareholders on a regular basis. This payment, referred to as dividend, is one of the benefits of investing in stocks. Although dividend payments are often made in cash, they may also be distributed in the form of bonus shares (free additional shares to existing shareholders) or a combination of both. For instance, a company may issue bonus shares in the ratio of 1 share per 10 existing shares held by its shareholders.

Many listed companies pay dividends to their shareholders once annually. A few of them however pay dividends twice per annum, which are made up of interim and final dividends. TOTAL Petroleum, Tullow Oil and Mechanical Lloyd are examples of the few ones that usually pay dividends twice in a year. It should however be noted that even though some companies pay dividends twice in a year, the sum of their two dividend figures might not match the single dividends paid by other companies.

While some institutions prefer to issue cheques as payment medium of their dividends, others deposit them directly into shareholders’ bank accounts. CAL bank, UT bank and Tullow Oil are typical examples of companies that deposit dividends directly into their shareholders’ bank accounts.

It may also not be appropriate to compare the dividend figures of two different stocks, particularly if they are of different industrial sectors. A more appropriate way to determine which stocks pay more as dividend could be the use of dividend yields. Dividend yield is the dividend expressed as a percentage of the stock price. This normally ranges from 4% to 9% depending on the company’s dividend policy and other factors such as a sharp decline in stock prices.

Simply, Dividend yield = Dividend per share/price per share.

Although dividend payments remain one of the factors looked for by some investors during stocks purchase, they should not necessarily be the yardstick to determine whether a stock is good or bad. This is because even though a company may make massive profits, it may choose to invest most of the profits in expansion projects instead of giving them to its shareholders as dividends. Nonetheless, dividends can still serve a useful purpose for investors who seek regular income.

Infact, dividend payments as well as an increase in dividend payment rates cannot be guaranteed. For example, Enterprise Group Limited, which is known for consistently paying dividends to its shareholders, skipped issuing dividend for its 2011 financial year. Likewise, GGBL (Guinness Ghana Breweries Limited) paid no dividend to its shareholders from 2010 to 2012. Moreover, Camelot Ghana Limited paid a constant dividend of GH¢ 0.005 for four consecutive financial years (2008 to 2011) without increasing the rate.

On the other hand, Goil (Ghana Oil Company Limited), which listed on the GSE in November 2007, has consistently paid dividends to its shareholders in an increasing rate to date.

Without bombarding you with further dividend theory, let me tabulate below, the dividend payments of 10 selected stocks for the past decade.

See also: A snapshot of Ghana Stock Exchange performance in 2016

1. Dividend payments of CAL Bank Limited (CAL)

Financial Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.0075 0.0075 0.0075 0.0105 0.0145 0.012 0.013 0.026 0.035 0.053 0.081 0.1

2. Dividend payments of Guinness Ghana Breweries Limited (GGBL)

Financial Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.03 0.0361 0.0418 0.0429 0.0485 0.04 Nil Nil Nil 0.01729 Nil Nil

3. Dividend payments of Ghana Commercial Bank (GCB)

Financial Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.0375 0.04 0.055 0.055 0.060 0.06 0.07 0.14 0.18 0.25 0.32 0.33

4. Dividend payments of Ecobank Ghana Limited (EGH)

Financial Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.067 0.24 0.16 0.18 0.2 0.24 0.29 0.43 0.78 0.84

5. Dividend payments of Societe Generale Ghana Limited (SOGEGH)

Financial Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.045 0.045 0.03 Issued bonus shares 0.04 0.035 0.04 0.04 0.06 Issued bonus shares 0.076

6. Dividend payments of Enterprise Group Limited (EGL)

Financial Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.005 0.005 0.008 0.009 0.01 Nil 0.032 0.045 0.215 0.05

7. Dividend payments of Fan Milk Limited (FML)

Financial Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.03 0.04 0.046 0.0575 0.075 0.1 0.02 0.04 0.06 0.09 0.09 0.1035

8. Dividend payments of HFC Bank (Ghana) Limited (HFC)

Financial Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.0045 0.0055 0.01 0.01 0.015 0.016 0.022 0.028 0.035 0.06 Nil

9. Dividend payments of Ghana Oil Company Limited (GOIL)

Financial Year 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.0085 0.0104 0.012 0.014 0.015 0.016 0.02 0.025

10. Dividend payments of Camelot Ghana Limited (CML)

Financial Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Dividend, GH¢ 0.003 0.004 0.004 0.004 0.0045 0.005 0.005 0.005 0.005 0.006 0.006 0.0075 0.0075