Top 10 dividend-paying companies in Kenya

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There are many good reasons why dividend-paying stocks are a good investment. Firstly, they are a reliable stream of income. Secondly, they have the potential for long-term compound returns. And lastly, they offer an opportunity for reinvestment. 

Here is a list of the top 10 dividend-paying companies in Kenya:

1) Nation Media Group

The Nation Media Group is the largest independent media house in East and Central Africa. It was founded by Aga Khan IV in 1959 and has operations in print, broadcast, and digital media.

The shares of the group are listed on the Nairobi Stock Exchange and trade under the symbol NMG. It is also cross-listed at the Uganda Securities Exchange and Rwanda Stock Exchange.

In its financial year ended 2018, it had a dividend yield of 6.76% and paid KES 7.50 final dividends per share.

2) Williamson Tea Kenya

Williamson Tea is a fifth-generation tea farming business. The company grows, processes, and sells tea in Kenya and the international market. It has its tea farms in Changoi, Kaimosi, Kapchorua, and Tinderet 

Its well-known tea brands include Duchess Grey, Traditional Afternoon, Lifeboat Tea, Kenya Earth, Green Earl Grey, Purple Blush, Mint Garden, Earl Grey Purple, Purple Matcha, and Green Matcha. 

Other than tea, the company has interests in property investment and the sale and servicing of generators. 

In its financial year ended 2018, it had a dividend yield of 6.67% and paid KES 10 dividend per share.

3) Kenya Power and Lighting

Commonly referred to as KPLC, this company transmits, distributes, and retails electricity to customers throughout Kenya. As of January 2020, the company had over 7.5 million customers.

The company was listed on the NSE in 1954, and the government has a controlling stake of 50.1%. End of the financial year 2018, it declared 6.41% in dividend yield and paid Kes. 0.50 dividend per share.

4) Absa Kenya

Formerly known as Barclays Bank, Absa Kenya Plc, is a local commercial bank with an asset base of $3.561 billion. 

It is part of the Absa Group Limited which is a financial service group with a presence in 12 African countries.

The bank provides financial solutions in retail, business, corporate and investment, and wealth management.

 In 2018, it had a 6.37% dividend yield and paid Kes. 0.80.

5) Longhorn Publishers

Longhorn Publishers Plc set up shop in Kenya in 1965 as a subsidiary of Longman Group International of the United Kingdom. On 30 May 2012, it was listed on the NSE and became the first publishing firm to go public.

Furthermore, its shares are cross-listed Dar es Salaam Stock Exchange, Uganda Stock Exchange, and the Rwanda Stock Exchange.

The company has operations across the African continent through distributor partnerships in Malawi, Cameroon, Zambia, Namibia, and Senegal. 

In the financial year ended 2018, it had a dividend yield of 6.17% and paid Kes. 0.29 dividends per share.

6) Carbacid Investments

Carbacid Investments Limited is a company that produces carbon dioxide gas for food processing, medical, and industrial use. On top of that, it also manufactures dry ice.

The company markets its products through its subsidiary, Carbacid (CO2) Limited. 

It has a distribution network that extends across the whole of East Africa, serving customers in Kenya, Uganda, Tanzania, Rwanda, Burundi, Ethiopia, Eastern DRC, Zambia, South Sudan, and Somalia.

The company is listed on the Nairobi Securities Exchange (NSE), where it trades under the symbol CARB.

In 2018, its shares had a dividend yield of 5.60% and paid Kes. 0.70 dividends per share.

7) Standard Chartered Bank Kenya Limited

This local bank started operations in Kenya in 1911 with its first branch opened in Mombasa Treasury Square. It was listed on the Nairobi Securities Exchange in 1989 and has 36 branches across the country.

Standard Chartered offers a variety of local and foreign currency banking solutions to its clients. They also have a diversified portfolio spread through business services, manufacturing, wholesale and retail trade, transport and communication, real estate, agriculture, energy, and water. 

Its clients include government and government agencies, commercial clients, and retail clients. 

 In 2018, it had a dividend yield of 5.48% and paid out Kes. 12.50 dividend per share.

8) Kenya Re-Insurance

Kenya Re is the oldest reinsurer in East and Central Africa. It was established through an Act of Parliament in December 1970. However, it began operations in January 1971. The company provides reinsurance products for both life and general insurance. It serves over 265 insurance companies in 62 countries across Africa, the Middle East, and Asia. 

In 2007, it launched its IPO and was listed on the Nairobi Securities Exchange and trades under the symbol KNRE. Consequently, the government cut its stake in the reinsurer. 

At the end of its financial year 2018, it had a 4.91% dividend yield and paid Kes. 0.85.

9) Co-operative Bank

The Co-operative Bank of Kenya Limited is a local bank that started as a co-operative society in 1965. It was given its banking license in 1968 and began serving cooperative societies in the country.

In 1977, it opened its first subsidiary Cooperative Finance Limited a financial advisory and capacity-building subsidiary.

It was listed on the Nairobi Securities Exchange on December 22nd, 2008, and trades its shares under the symbol COOP. 

The bank serves individuals, small businesses, and large corporations, and as of 31st December 2013, its shareholders’ equity stood at $425 million.

In the financial year ended 2018, it had a 4.08% dividend yield and paid out Kes. 0.80 dividend per share.

10) Kenya Commercial Bank

KCB Bank Kenya Limited is a local bank that runs under the agency banking model. 

It was started in July 1896 and the government of Kenya is the largest shareholder. In 1988, it floated its first initial public offering on the Nairobi Securities Exchange and trades under the symbol KCB.

The group’s stock is also cross-listed on theDar es Salaam Stock Exchange, the Rwanda Stock Exchange, and the Uganda Securities Exchange.

As of the financial year ended in 2018, it had a 3.85% dividend yield and it paid Kes. 2.00 dividend per share.

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About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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