News Column

Foundation Plans to Reward Dividend-Paying Companies

August 13, 2014

Nume Ekeghe

Bodmos Foundation is to organise a yearly 'Dividend Payment Awards (DP-Awards)' to reward and encourage listed companies that have been paying dividends to their shareholders regularly.

The foundation said in a statement yesterday that the maiden edition of the award is slated for November 2014 in Lagos.

Explaining the significance of the awards, Chairperson of Bodmos Foundation, Mrs. Priscila Kuye said: "The award shall enlighten the Nigerian public on the massive wealth pool that dividend payments constitute for investors in the Nigerian capital market every year as we publish every detail of dividend payment achieved by each listed company in Nigeria to their shareholders beginning from the start of the Nigerian Stock Exchange(NSE)."

According to her, the annual dividend payments by Nigeria's listed companies account for a significant pool of national wealth outside the government.

"This pool of wealth invariably spreads over to the larger Nigerian population by the beneficiary-investors through their numerous economic activities in the Nigerian economy. The annual DP-Awards presentation shall afford the public the opportunity of measuring the annual sizes of this great wealth pool," she said.

Kuye assured stakeholders in the capital market in particular of the ability of Bodmos Foundation to present each edition of DP-Awards with utmost diligence. She therefore solicited for the cooperation of stakeholders in the onerous task.

She noted that the Board and management of the DP-Awards would track records of dividend payments by all Nigeria's listed company on a yearly basis and add up each listed company's records cumulatively for the awards beginning from a company's year of listing on the NSE as published in any edition of their annual reports.

Some capital market stakeholders have hailed the plan of Bodmos Foundation, saying it is a good move that would impact the market positively.

"This is an idea that is very good for the market. The foundation must be commended for this move and I believe the awards would spur other companies that are doing well to always reward shareholders with dividend payment," Moses Igbrude of Independent Shareholders Association of Nigeria said.

Dividend is one of the benefits shareholders enjoy when they stake their money on shares. They also enjoy capital appreciation. Besides, dividends and capital appreciation, shareholders also stand the chance of enjoying bonus issue. This is always given by companies that do not want to give cash dividends.

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Source: AllAfrica

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