Companies listed on the Rwanda Stock Exchange are poised to distribute dividends to their shareholders, signaling a recovery from the economic challenges posed by the Covid-19 pandemic. Banks and other businesses have reported improved financial performance, enabling them to declare dividends. This development is a welcome relief to shareholders who have been eagerly awaiting the return on their investments. The Rwanda Stock Exchange has announced that several companies, including banks, will be paying dividends to their shareholders.
Bralirwa Plc, the country's leading brewery, has proposed a dividend of Rwf21.91 per share to its shareholders. This amount represents 100 percent of the company's net profit for the fiscal year 2022. The proposed dividend is subject to approval by shareholders at the company's annual general meeting next month. If approved, the dividend will be paid on June 30 to all shareholders whose names appear in the register of shareholders at the close of business on May 31, 2023. The dividend is also subject to withholding tax.
Bank of Kigali has recommended a full dividend payout of Rwf32.5 for each ordinary share. The dividend, which represents a 50 percent payout ratio of the bank's net income for the year ended December 31, 2022, is awaiting approval at the annual general meeting scheduled for May 19. If approved, the dividend will be payable on or at the beginning of July. The bank's shareholders are expected to benefit from the improved financial performance of the bank.
Despite recently losing up to $10.3 million to fraud, I&M Bank Rwanda will pay up to Rwf1.84 of dividends per share to its shareholders. The bank generated a net profit of $7.6 million in the financial year that ended in December 2022. The dividend payout is subject to approval during an annual general meeting slated for May 24. The bank's shareholders will benefit from the dividend payout, which is a sign of the bank's resilience in the face of challenges.
Equity Group Holdings, a Kenyan-based company with operations in Rwanda, is scheduled to give up to Kshs 4.00 each for each ordinary share on the issued and paid-up share capital of the company. The dividend payout is for the financial year ending December 31, 2022. The company has announced that the dividend will be payable on or before June 30, 2023, to members of the company on the share register on the closure date of May 19, 2023. A general meeting will be held on June 21, 2023.
The directors of KCB Group have recommended a final dividend of KShs 1.00, in addition to an interim dividend of KShs 1.00 paid earlier. The full dividend per share for the year ended December 31, 2022, will be KShs 2.00 for each ordinary share, subject to approval during the annual general meeting slated for May 25. The dividend payout is a sign of the company's improved financial performance and its commitment to rewarding its shareholders.
The dividend payouts by these companies demonstrate the resilience of Rwandan businesses in the face of economic challenges. The companies' improved financial performance is a welcome relief to shareholders who have been eagerly awaiting the return on their investments. The Rwanda Stock Exchange has welcomed the dividend announcements, which are expected to boost investor confidence in the market.
Key points
- Companies listed on Rwanda Stock Exchange are paying dividends to shareholders as businesses recover from Covid-19 challenges.
- Bralirwa Plc, Bank of Kigali, and I&M Bank Rwanda have announced dividend payouts to their shareholders.
- The dividend payouts demonstrate the resilience of Rwandan businesses and are expected to boost investor confidence in the market.
