If you are looking for the Aliko Dangote secret which he cooked and continues to cook for Nigeria, here is it: the man likes to take care of his investors, and because he has that business-style, he has made many friends in markets.
For 2021, he is going to share N340.8 billion with his investors. That dividend is coming from the N1.4 trillion he unlocked in the market. Recall that he paid N272.6 billion in 2020. People, left and right, he is sharing good stuff – real money. People, he shares more money than most state budgets!
Dangote Cement Plc will pay shareholders a dividend of N20 per share translating to N340.8 billion after recording a revenue of N1.4 trillion for 2021, the company said in a note to the Nigerian Exchange Limited on Monday.
The company rewarded its shareholders with N272.6 billion as dividend the previous year, meaning the newly declared sum is 25 per cent higher than that payout.
The cement-maker said the dividend, “subject to the appropriate withholding tax and approval, will be paid to shareholders whose names appear in the register of members as at the close of business on May 30, 2022.”
On 31 May, 2022, the register of shareholders will be closed to allow the company’s registrar to prepare for payment on June 15, 2022.
As Dangote Cement drops that massive number. Lafarge is also on its own game; “Lafarge Africa Plc will pay shareholders a final dividend of 100 kobo per unit of its 50 Kobo ordinary share, translating to N1.610 billion, the manufacturing company said Tuesday. Lafarge Africa said the dividend will be paid to shareholders whose names are on its register of members as of close of business on April 1.” Simply, cement is a big business and that is why they are paying massive dividends.
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But Aliko Dangote is on another level and that is possible because there is a great incentive here: only 15% of Dangote Cement is available for investors. And what that means is this: the other 85% remains under his control. If dividends go high, Dangote will have a great Salah. If you have that type of structure, the amazing becomes magical in the Forbes list of billionaires.
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How about persuading the man Dangote to part with additional 15%, bringing the total available to investors to 30%? Since our people enjoy eating food that is already done, another way of spreading the wealth could be by letting more people (investors) eat from Dangote’s delicious meal. If persuasion doesn’t work, we could try policy; too hard for our political class?
Since we do not grow many giants here, the few giants available should continue to invite more people to the party, it will help mute the monopoly cries here and there.