By Chimwemwe Misomali & Chimwemwe Mangazi:
Some 13 of the 16 Malawi Stock Exchange (MSE) – listed companies have declared dividends and registered dividend growth in 2023, Times Business understands.
For example, Press Corporation declared a final dividend of K4.45 billion, representing K37 per share for the year ended December 31 2023, illuminating a 27 percent jump when compared to the K3.48 billion or K29 per share reported in 2022.
National Investment Trust (NITL) declared a final dividend of K675 million representing K5 per share for 2023 up from K317 million or K2.35 per share in 2022.
However, NBS bank registered dividend declines recorded at K1.88 billion or K0.64 per from K2.63 billion or K0.90 per share reported in 2022.
Blantyre Hotels Limited and TNM did not declare any dividend in 2023 while Airtel is yet to publish its financials.
In an interview, MSE Chief Operating Officer Kelline Kondowe said the performance will propel investments on the market.
“The improved performance, in terms of dividend payments, is a good development as it means that investors are benefitting from their investments. One of the roles of the stock market is to reduce income inequalities by providing an opportunity to every Malawian to participate in ownership of profitable businesses; and this is what we are seeing,” Kondowe said.
General Secretary of the Minority Shareholders Association of Listed Companies (Misalico) Frank Harawa said shareholders are excited with the way the companies are paying their dividends.
He said dividends motivate shareholders especially that some shareholders solely depend on dividends for survival.
“As shareholders, we make money when share prices go up and when dividends are being paid. Shareholders are very happy. These are only dividends basing on 2023 and looking at 2024 half-year results, it seems as though the sky is the limit. As companies keep some of the profits they make so as to keep their businesses thriving, let them also share some of the profits with their shareholders,” Harawa said.
Stockbrokers Malawi Limited Equity Research Analyst Kondwani Makwakwa said the increase in dividend payouts by companies is primarily driven by the rise in profitability, which has translated into enhanced returns for shareholders in the form of dividends.
“It is important to note that receiving dividends encourages shareholders, and the increase in payouts is motivating many to expand their investments in these companies. This positive outlook reflects the confidence shareholders have in the companies’ continued performance and potential for future growth, which is bringing demand to the market for these stocks,” Makwakwa said.
Despite such developments, MSE has remained small with only 16 listed companies amassing a weighted average market capitalisation of K7.2 trillion as of yesterday.
Authorities at the market have engaged prospective companies to list on the stock exchange currently undergoing orientation under the Mzinga Incubation Programme.
