Video entertainment firm MultiChoice will pay a R1.375 billion dividend to Phuthuma Nathi shareholders for the financial year ended 31 March.
This, after it was approved at the annual general meeting (AGM) yesterday. According to the company, shareholders will be paid R20.37 per share before dividend tax (R16.30 after tax) in the first week of September.
Imtiaz Patel, MultiChoice SA chairperson, says: “Despite the challenging macro-economic environment, which is also having a severe impact on our Phuthuma Nathi shareholders, the board declared a dividend again this year.
“We want to lend a helping hand during these trying times to our 77 000 shareholders who come from all walks of life, including domestic helpers, gardeners, professionals, stokvels and small businesses. We believe this dividend will bring much-needed relief.”
Phuthuma Nathi chairperson Mandla Langa adds: “Phuthuma Nathi is a truly broad-based black economic empowerment scheme and one of the most successful BBBEE schemes in South Africa.
“It has been delivering great value for our shareholders, who have received dividends every year since the scheme was implemented in 2006. To date, Phuthuma Nathi will, after payment of this year’s dividend, have received R17.8 billion in dividends from MultiChoice SA.”
According to the company, if an investor bought 400 Phuthuma Nathi shares in 2006 at R10 per share (an investment of R4 000), their shares would now be worth approximately R50 000 (based on a share price of R125 on 4 August 2023).
It adds that the same investor would have received dividends (after tax) amounting to R65 000 (including the dividend to be paid in September), bringing the total return on investment to R115 000 – which is 29 times the initial investment.
MultiChoice notes that Phuthuma Nathi 1 has yielded a 31% annual return to investors over the past 17 years, of which roughly 16% was capital growth and the remainder being dividends received.
It is rather unfortunate that some shareholders are losing out by not claiming their dividends, which is mainly because they have failed to update their banking details or are deceased, it says.
“We’ve been trying to reach these shareholders or their family members to pay the money that is rightfully theirs. Whilst we have already paid out R109 million in unclaimed dividends, there is still R204 million to be claimed,” concludes Langa.