Stockbrokers at the NSE in Nairobi. FILE PHOTO | NMG
Commercial and agricultural sector firms top listed companies
with the highest dividends relative to their share prices, according to
data compiled by Standard Investment Bank (SIB).
ScanGroup
, Williamson Tea , Kapchorua and Nation Media Group
are among the top five companies listed on the Nairobi Securities
Exchange (NSE) with the highest dividend yields, which is the dividend
relative to the current prices.
ScanGroup has a 23.6
per cent dividend yield topping the pack, thanks to the special dividend
it gave shareholders in June. The company is also set for another
dividend, which is likely to keep its dividend yield high.
“For
ScanGroup, the main factor in the higher dividend has been the special
one that it gave this year. And we see this higher value likely to be
maintained because there is also an upcoming special dividend as a
result of the sale of its research division,” said Lisa Kimathi, senior
associate for research at SIB.
The data shows that the two tea companies — Williamson and Kapchorua — had 15.3 and 13.3 per cent in dividend yields.
However, the price of Williamson is also a reflection of the
fact that the price of the share has come down by more than 20 per cent
in the last 12 months and also in the past six months. For Kapchorua,
the increase in the price of the share in the past year has also been
relatively low at just above six per cent compared to 17 other companies
whose price has had an upward movement of more than six per cent during
the same period.
Other companies on the list of top 10 in paying dividends relative to the prices of their listed shares are Kenya Reinsurance
and Umeme
.
Ms
Kimathi said despite the high dividends for agricultural firms, the
problem remains constrained supply of the securities. For a company such
as Standard Chartered Bank
among the top 10 in terms of dividends yields, she explained the major issue is a price too high for retail investors.
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