AVA Capital Adopts Dividend Payout Ratio of 70% of Net Profit

By Aduragbemi Omiyale

As part of efforts to promote sustainable shareholder value, AVA Capital Plc has adopted a dividend payout ratio within the range of 35 per cent to 70 per cent of Profit After Tax (PAT), subject to its financial performance, capital position, liquidity requirements, regulatory obligations and other relevant internal and external factors.

This dividend policy framework was approved by the company’s board at its meeting held on Wednesday, October 21, 2026.

The action reflects the firm’s commitment to delivering sustainable shareholder returns while maintaining financial resilience, preserving adequate capital for future growth and ensuring compliance with applicable legal and regulatory requirements.

The adoption of the policy underscores the organisation’s commitment to transparent corporate governance, responsible capital allocation and the creation of sustainable value for its shareholders.

However, AVA Capital emphasised that the policy does not constitute a guarantee that dividends would be declared in any financial year, noting that the board retains the discretion to determine whether a dividend should be recommended, having regard to the company’s financial stability, capital adequacy, liquidity, regulatory compliance and long -term shareholder interests.

It stated that cash reward recommendations would be guided by the financial performance, earnings, cash flows, capital adequacy, planned investments, strategic priorities and prevailing economic conditions, adding that the board may recommend a payout ratio above or below the target range where justified by prevailing circumstances.