Shareholders of CAP to get N1.47bn dividend

By Kayode Tokede

The management of Chemical and Allied Products Plc has proposed a total of N1.47 billion to the shareholders of the company as the dividend for the period ended December 31, 2020.

According to the notification issued by the management of the leading premium and standard paint maker, the dividend recommendation was one of the key approvals made by the Board, during the Board meeting held yesterday, 22nd of March 2021.

In line with the disclosure, the company is expected to pay its shareholders a dividend of N2.1 per share on all its 700,000,000 outstanding shares.

This puts the total dividend payout to qualifying shareholders at N1.47 billion.

The N2.1 per share dividend proposed by the company’s Board is subject to appropriate withholding tax and approval by the shareholders at the Company’s Annual General Meeting. The date of the AGM will be announced shortly.

CAP Plc did not pay its shareholders dividends in 2020, from its profit in 2019.

The proposed dividend is 27.6per cent lower than the N2.90 per share dividend that the company paid to shareholders in 2019 from the profits made in 2018.

Shares in CAP Plc are currently worth N20 per share at the open market as of today, 23rd of March 2021. At this price, the dividend yield of the company stands at 10.5 per cent.

The post-merger entity of Chemical and Allied Products Plc and Portland Paints and Products Nigeria Plc will become the largest player in the Nigerian paints market with a combined estimated market share of 14.9per cent.

CAP Plc is expected to file its Audited Financial Statements for the Year Ended December 31, with the NSE no later than March 31, 2021.