Business

Dangote Cement to give N272.65 billion to shareholders

Africa’s leading cement manufacturer, Dangote Cement has recommended a total dividend payout of N272.65 billion from the profits made in 2020.

According to data from Nairalytics, the research arm of Nairametrics, the cement behemoth has now paid a total of about N1.14 trillion in dividends since 2016.

Dangote Cement is majority-owned by Dangote Industries Limited (DIL) with about 85% ownership of the outstanding shares of the company. Africa’s richest man, Aliko Dangote owns nearly all of DIL. Thus, we estimate over 90% of the dividends paid over the last 5 years were paid to the billionaire investor.

Nairametrics research also indicate most of the funds are used to service debt obligations of the group while also used to fund other major projects such as the Dangote Refinery.

The company has maintained a regular dividend of N16 per share in the last three years and a dividend payout ratio that averages 99% over the last 5 years with 2019 being the highest with about 136% in the dividend paid out of profits.

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