By Dipo Olowookere
The Nigerian Exchange (NGX) Limited has disclosed that its shareholders should expect a dividend payout ratio of between 25 per cent and 75 per cent in a financial year.
However, it stressed that this cash reward would be from the distributable profit of the same year to which the dividend is applicable.
In a notice, the organisation said the dividend policy, which has been approved by the board of the company, was designed to address issues relating to the determination and payment of dividends.
“The range of dividend payable in cash will range between a payout ratio of 25 per cent and 75 per cent of the distributable profit of the same year to which the dividend is applicable.
“In addition, the policy indicated that the group’s board of directors may recommend a scrip (bonus) issue in any year and in any ratio as it deems fit for any year through the capitalisation of any undistributed retained earnings, wherein the board, in recommending a bonus issue, shall maintain a balance between the paid-up capital and the undistributed retained earnings,” a part of the dividend policy document stated.
Business Post gathered from the document that, “NGX Group, through its dividend policy, seeks to guarantee shareholder rights especially as it relates to return on investment. The policy is developed to address issues relating to the determination and payment of dividend.”
“The group shall apply the policy, accordingly to determine any claim by any shareholder, individual or institution, regarding the dividends pay-outs by NGX Group subject to provisions in the Articles of Association of the Company,” it added.
“The decision to declare and pay dividends, including the procedure for making dividend payments, shall be approved at the Annual General Meeting (AGM) of shareholders, upon the recommendation of the board of directors.
“The board of directors may in its discretion declare an interim dividend based on profits arrived at as per quarterly or half-yearly unaudited financial results, noting that where no final dividend is declared, the interim dividend shall be regarded as the final dividend in the AGM,” the policy document further stated.
“Dividend is to be paid on the date in which the AGM holds in the year that dividend is declared or at any other date that the shareholders at AGM shall approve and no interest shall accrue on any unclaimed dividend,” it added.
