Standard Chartered Bank has posted a rise in its dividend returns to the tune of 14.5 percent, setting a new payout for shareholders. The news follows a review by the lender on the dividends for the year ending December 2019 to a new bonus issue and cash payout.
In the Genghis Capital report last week, StanChart reveals shareholders will bear the task of approving the new dividend and bonus issue. The new dividend will stand at Sh7.50 per share, with the bonus issue of a share for every ten held. This will replace the lender’s earlier stance of Sh15 a share with cash dividends.
‘The review of 2019 dividend fro Sh15 to Sh7.50 plus a 1:10 bonus gives investors a yield of 4.5 percent on the cash dividend plus 10 percent stock dividend(before price dilution by the bonus shares),” reads Genghis Capital weekly report.
“While investors counted on the cash dividend…., this translates to a return of 14.5 percent, significantly better than the 8.9 percent cash dividend yield as previously recommended.”
The bonus issue will now set Sh34.35 million new shares worth Sh5.71 billion to shareholders. Further, the Sh7.50 dividend per share leaves customers getting a Sh2.58 billion cash payout.