Peter Egwuatu
President and Chief Executive of Dangote Group, Alhaji Aliko Dangote has assured shareholders of the company of  good returns on their investment in the group.

In a chat with newsmen on Monday, Dangote said the group will ensure that all those who have their investments in the group will be adequately compensated with robust returns on their investment.

He said: “Our reason for listing any of our companies is to take care of shareholders. So far gave dividend of over N23 billion last  year”
The group, according to sources, has a policy of paying75 per cent of the profit made as dividend payout to the investors.

A review of dividend history of companies under the Dangote Group listed on the Nigerian Stock Exchange(NSE) indicated that in the financial year ended December 31, 2009, investors received over N23 billion as dividend. The total dividend payout is significant considering the harsh operating environment that arose from the global financial meltdown and the total amount paid out as dividend in the capital market.

It will also be recalled that a dividend payout of N274.8 billion was proposed by the Dangote Cement arm of the group for the first two years of its operations. According to the scheme of merger between Benue Cement and Dangote Cement, while N89.1 billion was projected for 2010, N185.7 billion was projected as dividend payout for 2011.

From a proposed turnover of N225.9 billion and N397.95 billion in 2010 and 2011 respectively, the company projected a gross profit forecasts of N127.3 billion and N255.5 billion. Earnings per share for the two respective years are 767 kobo and 1,598 kobo respectively.

Meanwhile capital market analysts and some stockbrokers have described the profit forecasts for Dangote Cement as grossly conservative, noting that the company, with its antecedent surely has the capacity to do more than it has projected.

Nornah Awoh, a financial analyst said though more than 75 per cent of the newly quoted issues could not meet their profit forecasts, but with the antecedent and focus of the Dangote Group, he was sure, the forecasts will be met  and surpassed, and “when that is done Dangote Cement will join the very few that have been able to meet their targets in terms of projections”.

Corroborating Awoh’s view, Tunji Awoyemi, a stockbroker said the market is expecting the Dangote Cement listing and feared that the demand will greatly surpass whatever quantity the company will put on offer as the stock promises to be the best in terms of returns on investment.
Financial advisers to the merger, Vetiva Capital management Ltd and Afrinvest revealed that, “both set of shareholders will continue to enjoy dividend growth in the coming years taking into account the earnings growth profile of the post merger Dangote Cement Plc and the fact that the prevailing 75 percent dividend payout ratio would be retained.”