Africa’s richest man Aliko Dangote is poised to receive a substantial dividend of $284.5 million from his stake in Dangote Cement Plc, the continent’s leading cement behemoth. This windfall is part of the group’s recommended total dividend for fiscal year 2023, reflecting the company’s robust financial performance.
The dividend, which will be paid electronically into his bank account by Mon., April 29, 2024, is a testament to Dangote Cement’s impressive fiscal results, which prompted the board of directors to propose a dividend of N30 ($0.0185) per share for the 2023 fiscal year.
Inside Aliko Dangote’s cement empire: His 87-percent stake and the massive $284.5-million dividend
According to figures contained in Dangote Cement’s recently published audited financial statement, Dangote’s indirect stake in Dangote Cement, through Dangote Industries Limited, comprises 14,621,387,610 shares, equivalent to 85.8 percent of the company’s total issued shares. Additionally, he holds 27,642,637 shares directly in the company, bringing his total stake to 16,752,154,537 shares or 87.28 percent.
With this majority ownership, Dangote stands to gain a considerable dividend of N146.5 billion ($284.5 million) on April 29, 2024, solidifying his status as Africa’s wealthiest individual and a prominent dividend earner on the continent.
Dangote Cement’s generous dividend: Rewarding shareholders with N30 ($0.0185) per share in 2023
Dangote Cement, the largest cement producer in Sub-Saharan Africa, boasts an annual production capacity of 55 million tonnes across 10 countries. The recent establishment of a six-million-tonne plant in Itori, Ogun State, underscores the company’s commitment to enhancing export capacity and contributing to Nigeria’s economic diversification.
The company’s financial report highlights a noteworthy increase in profits, surging from N382.31 billion ($236.3 million) in 2022 to N455.58 billion ($282 million) in 2023. This remarkable growth is attributed to a 36.4-percent rise in revenue, which escalated from N1.61 trillion ($995.4 million) in 2022 to N2.21 trillion ($1.37 billion) in 2023, underscoring Dangote Cement’s dominance in Nigeria and the broader African market.
In keeping with its strategic growth objectives, the board of directors recommended a dividend of N30 ($0.0185) per share for the 2023 fiscal year, a substantial increase from the N20 ($0.0124) dividend paid in 2022. This decision aligns with the company’s commitment to shareholder value and reinforces its position as a market leader in the cement industry.
