- Advertisement -
   

Investors scramble for BAT shares ahead of Sh3.5 billion dividend payout

- Advertisement -

BAT Kenya has been exciting the stock market recently, transacting huge volumes and values of shares since the end of January 2019.

The upsurge in the buying of BAT share at the Nairobi Securities Exchange (NSE) seems to be in anticipation of a huge dividend payout from the cigarette manufacturer, and the investors who have gambled on the stock of BAT Kenya seem to have hit the right tune.

In its full year results posted in mid-February, BAT Kenya announced they have increased their dividend payout from Ksh2.5 billion to Ksh3.5 billion.

The company declared a final dividend of Ksh31.50 per share for the year ended 2018, bringing its  overall dividend to Ksh35 per share in line with the interim dividend already paid out.

BAT Kenya board said, “The dividend, which is subject to withholding tax, will be paid on 10 May 2019 to the shareholders on the register as at the close of business on the 14 March 2019.”

It seems a need to be part of the Ksh3.5 billion cake before the mid-March deadline has caused the recent scramble for BAT Kenya shares at the bourse.

The exciting activity has at times driven turnover at the NSE. On January 30, for example, the NSE registered a turnover of Ksh1.6 billion, with BAT Kenya trading shares worth Ksh808 million.

READ : WORLD’S FIRST CRYPTO-BASED FUND TO BE LISTED ON THE NSE

Four days earlier, the bourse had posted Ksh1.1 billion, with the cigarette manufacturer exchanging Ksh786 million.

For the week ended February 8, BAT Kenya managed to move 2.6 million shares valued at Ksh1.6 billion. The cigarette maker’s share price had traded at between Ksh578 and Ksh643.

BAT Kenya vs illicit trade

All this comes at a time when the cigarette manufacturer posted a profit of Ksh4 billion for the year ended December 31, 2018.

BAT Kenya however said that illicit trade in cigarettes reduced revenue.

“Performance was dampened by the negative impact of illicit trade in cigarettes in Kenya,” the company’s board said.

According to the firm, the battle against the illegal cigarettes trade in Kenya had grown from 12.4% in DeCember 2017 to 14.1% in December 2018.

SEE ALSO : SAFARICOM GETS EXECUTIVE COACH FOR BOARD POSITION

- Advertisement -
Mike Njoroge
Mike Njorogehttp://www.businesstoday.co.ke
Mike Njoroge is the founder of Daystar Oracle and FootballTriangle. He is passionate about news, religion and sports. He can be reached at: [email protected]
- Advertisement -
Must Read
- Advertisement -
Related News
- Advertisement -

3 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here