Dangote Cement Offers N1.1 Trillion Dividends Within 5 Years

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

The industry for the last five years has paid a total of about N1.14 trillion in dividends since 2016.

Brandnewsday understands that as Dangote Cement is majority-owned by Dangote Industries Limited (DIL) owning about 85% ownership of the outstanding shares of the company.

Africa’s richest man, Aliko Dangote controls almost all of DIL.

Dangote Cement Offers N1.1 Trillion Dividends Within 5 Years

As a result of that, a report has it that over 90% of the dividends paid over the last 5 years were paid to the billionaire investor.

Also, other findings revealed that most of the funds are used to service the debts obligations of the group while also used to fund other major projects such as the Dangote Refinery.

READ: Dangote Cement Revenue Breaks ₦1tn Amid 15% Increase In Sales

Recall that Dangote Cement’s topline revenue rose from N615.1 billion in 2016 to N1.04 trillion in 2020, while the company’s production capacity has expanded from 42.55 million mtpa to 48.55 million mtpa in 2020.

Strict Dividend Policy

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.

The dividend payout ratio for 2020 was 99% meaning it basically paid out all the profits it earned.
Total profits earned since 2016 is about N1.2 trillion thus over the last 5 years it has paid out 95% of all its profits as dividends.

Dangote Cement is currently valued at about N3.8 trillion and boasts of strong retained earnings of N779 billion, despite paying out nearly all its dividends in the last 5 years.

During this period, we estimate the company has paid about N181 billion in taxes.