Kampala — Umeme has announced its results, allocating a dividend pay-out of Shs45b for the year ended December 2018.
The dividends, according to notes published along the results, will be paid to shareholders that were on the company's books by the close of business on June 25, 2019.
Umeme is one of Uganda's most profitable companies listed on the Uganda Securities Exchange and cross listed on the Nairobi Securities Exchange.
National Social Security Fund (NSSF), the largest single institutional investor in Umeme, will receive Shs15.29b for its 23.2 per cent stake for 2018.
This is as a result of Shs12.7 per share that Umeme paid in January and a final dividend of Shs28.2 per cent that will be paid in July this year.
NSSF, like many other investors in the utility company, will get a total dividend of Shs40.9 per share for the year, up from Shs7.6 paid in 2017. This is subject to approval by the shareholders. Additionally, payment will be subject to withholding tax deductions where applicable.
Commenting about the payout, NSSF managing director Richard Byarugaba, said this represents a superior dividend yield based on its current market value of Shs300.
"We attribute this yield to a good return on investments made by Umeme that created cash returns for the company sufficient enough to service their debt and further maintain a pay-out ratio of 50 per cent, which is very attractive for institutional investors due to its stability," he said.
Although Umeme has had some mixed trading at the stock market, Mr Byarugaba said, it remains a good investment due to its attractive dividend policy and steady revenue growth model.
In January, Umeme paid an interim dividend of Shs12.7 per share.
Allan Gray, which has a 9.6 per cent stake, will earn Shs6.3b while Kimberlite Frontier Africa Master Fund will receive Shs5.5b.
Investec Asset Management Africa will get Shs2.9b while Utilico Emerging Markets Limited will receive Shs2.9b. The Africa Emerging Markets Fund will get Shs2.6b. International Finance Corporation will earn Shs1.8b while Coronation Global Opportunities Fund will receive Shs1.7b. Imara S P Reid Shs1.6b (Pty) Limited and Duet Fund will get Shs1.6b.
The individual shareholders who hold a combined 36 per cent stake in Umeme will earn Shs16.4b. Umeme's share price on the Uganda Securities Exchange (USE) is currently at Shs300, a drop from Shs528 it had traded in 2016.
At the current price, it means the shareholders' stake in Umeme is now worth Shs487b whereas in 2016 it was worth Shs857b.
Number of shares held by different entities in Umeme
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