28 August 2024
Phuthuma Nathi shareholders receive R1.375bn dividend
Phuthuma Nathi shareholders receive R1.375bn dividend
Phuthuma Nathi, one of South Africa’s most successful broad-based empowerment schemes, will distribute R1.375bn in dividends this year. As a result, more than 75 000 black shareholders from all walks of life - including domestic helpers, gardeners, professionals, stokvels and small businesses - will receive R20.37 per share (R16.30 after deducting dividend tax) in the first week of September.
Elias Masilela, MultiChoice SA chair, said: "The challenging macro economic environment continued to affect our business during the past financial year, and we are pleased we could still grow earnings and cash flows to support a stable dividend. We see dividends as an important driver of Phuthuma Nathi’s shareholder value and are proud of the difference they’ve made to the lives of ordinary South Africans over the years, from paying for their children’s education to being a source of additional income during difficult times."
Phuthuma Nathi chair, Mandla Langa, added: " This share scheme is a testament to MultiChoice’s dedication to support participation, inclusivity and diversity in South Africa’s economy. Since 2006, Phuthuma Nathi has received R19.1 billion in dividends from MultiChoice, which has allowed us to deliver exceptional value for our shareholders.
An investment in Phuthuma Nathi of just R4 000 in 2006 would have yielded R42 400 in share value and more than R65 256 in dividends to date. This represents a 30% annual return over the past 18 years, significantly above market benchmarks."
The investment return over time, as mentioned by the Phuthuma Nathi chair, can be explained as follows:
– Shares bought in 2006: If an investor bought 400 Phuthuma Nathi shares @ R10 per share, the total investment would have been R4 000.
– Share value today: Based on a share price of R106, those same shares were worth R42 400 on 22 August 2024. (The share price declined this year due to challenging market conditions. Like other shares, the Phuthuma Nathi share price goes through fluctuations and is affected by market forces).
– Dividends received to date: Adding up all the dividends over time, the investor would have received a total of R65 256 in dividends after tax (including the dividend to be paid in September 2024).
– Total return on investment: Combining the gain in the share price and the dividends over time represents a total return of R 107 656 – which is 27 times the initial investment.
"It is unfortunate that some Phuthuma Nathi shareholders are missing out on these dividends. In certain instances they have not updated their banking details and in other cases they are deceased and the dividends are owed to their estates. We are actively reaching out to shareholders or their families to ensure they receive their dividends. We have embarked on an aggressive campaign since 2020 to reduce unclaimed dividends. Since then, a total of R116m in unclaimed dividends has been paid out, but an additional R215m remains unclaimed," concluded Langa.
Anyone who has ever owned Phuthuma Nathi shares, or knows of someone in their family who did, should please reach out to the Phuthuma Nathi call centre, at 086 011 6226.