This brings the total dividend for the financial year that ended in 2019 to N7.92. The dividend payout is subject to appropriate withholding tax and approval.
Date of payment: On May 19, 2020, dividends will be paid electronically to shareholders whose names appear on the Register of Members as on April 17, 2020. Note also that shareholders must complete the e-dividend registration and mandate the Registrar to pay their dividends directly into their bank accounts before they can receive dividend payment.
In addition, it should be noted that the register of shareholders became closed starting from 20th April 2020. This is according to a public disclosure that was issued by the company.
Meanwhile, the Annual General Meeting will be held at the Rooftop Event hall MTN Plaza, Falomo Ikoyi, Lagos at 11 am.
Understanding dividend: A dividend is a payment made by a company to its shareholders, usually as a distribution of profits. When a company earns a profit or surplus, it reinvests a portion of the profit in the business (retained earnings) whilst paying a portion as dividends to the shareholders.
Distribution to shareholders may be in cash (usually a deposit into their bank accounts) or the issuance of further shares, otherwise known as shares repurchase. But this is usually done if the company has a dividend reinvestment plan.
In other words, a dividend is allocated as a fixed amount per share with shareholders receiving a dividend in proportion to their shareholdings. For the joint-stock company, paying dividends is not an expense, rather, it is the division of after-tax profits among shareholders.
About the company: MTN Nigeria Communications Plc provides wireless telecommunication services. The company offers roaming, internet, bills payment, device financing, data management, SIM registration, and other related services.