MTN declares fresh interim dividend in Uganda on profit rise
MTN Uganda has announced a quarterly dividend of Sh0.24 per share following a notable 21.1% growth in net profit, reaching Sh14.2 billion (~$3.8 million) for the nine months ending in September. The impressive performance is attributed to a 15.9% surge in total revenue, amounting to Sh78.5 billion
The telecom company's statement revealed the approval of a second interim dividend of USh6.0 per share for the quarter ending September 30, 2023. According to the Uganda Securities Exchange (USE) Trading Rules 2021, the ex-dividend date is set for Tuesday, November 28, 2023. Investors purchasing MTN Uganda shares before this date will be eligible for the interim dividend, while those acquiring shares after November 28, 2023, will not benefit from the declared dividend.
The dividend payout is scheduled for December 22, and among the beneficiaries are individual and institutional investors from Kenya. MTN Uganda's positive financial results and dividend distribution reflect the company's strong performance in the telecommunications sector.
Key Takeaways
Dividends are important in stock investing because they give shareholders a steady source of extra money. Large corporations that make a lot of money and have stable finances usually pay significant dividends. Investing in these companies can benefit in two ways: your shares can become more valuable over time, and you get regular dividend payouts. Investors who acquired shares in Airtel Uganda through its recently concluded initial public offering (IPO) are also set for regular dividends, with the telco committing to distribute at least 95 percent of the net or retained earnings per annum. Airtel Uganda relied heavily on the country’s pension fund and retail investors, including citizens of East Africa, to raise Sh8.5 billion in the IPO which was undersubscribed.
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