Servair Abidjan to pay shareholders $4.1m in market-best dividend
TLDR
- Servair at Abidjan Airport reports a 5.28% profit increase to 1.34 billion FCFA in 2023 after a 985 million FCFA loss in 2020.
- Servair offers shareholders a dividend of 206 FCFA per share, totaling 2.5 billion FCFA, with a 15.92% yield, the highest in the BRVM market.
- The dividend of 206 FCFA per share is more than double the previous year's level of 82.8 FCFA, showing significant growth and attractive returns for investors.
After experiencing a loss of 985 million FCFA in 2020, Servair, which operates in refueling, provision of meals, and cleaning services for airlines at Abidjan airport, reported a 5.28% increase in profit to 1.34 billion FCFA in 2023.
Servair is offering part of its reserves as dividends to shareholders, along with its entire net profit. The total allocation amounts to 2.5 billion FCFA (over $4 million). After factoring in the 10% securities income tax (IRVM), the net dividend per share stands at 206 FCFA, more than double the previous year's level of 82.8 FCFA.
This dividend, when reported against the share price of 1,295 FCFA as of April 26, 2024, yields 15.92%, making it the highest yield on the regional BRVM market over the past two years.
Key Takeaways
While Servair experienced growth in its financial performance, it was not directly linked to its core business. The company achieved this through a significant reduction in income tax by 22.14% to 552 million FCFA. Servair's market capitalization of XOF 14.1 billion positions it as the 36th most valuable stock on the BRVM, accounting for around 0.173% of the equity market. Despite this, the company has maintained its commitment to providing attractive remuneration to its shareholders, evident in its substantial dividend per share and the highest dividend yield on the market.
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