Cal Bank is set to pay dividend for the third consecutive year following a 23.3%y/y growth in net earnings to GHS213.80 million in FY2020. The bank is quickly developing a reputation as a dividend paying stock having paid dividends in 12 out of the last 14 years. The recent dividend of GHS0.11 per share in respect of the 2020 financial year reflects 23.6%y/y growth compared to the dividend of GHS0.089 in the previous year. This should be good news to dividend loving investors who may have increased their exposure to Cal Bank in the last few months or years.
This would also be great news for portfolio managers who are keen to enhance portfolio returns this year following a bearish stock market that affected equity portfolios in 2020. The dividend of GHS0.11 per share reflects a very attractive dividend yield of 17.2% based on the prevailing market valuation of GHS0.64 per share. This is one of the most attractive dividend yields we have seen in the Ghanaian stock market in the last few years.
We expect Cal Bank to pay a total dividend of GHS68.92 million to investors based on the current issued shares of 626.59 million shares. And based on the net earnings of GHS213.80 million, this would result in a dividend pay-out ratio of about 32%, same as the previous year. It seems the bank wants to stabilise its pay-out ratio at around 32% in order to allow it to sustain dividend payments without compromising on capex spending and the stability of the bank.
Please see the details of the dividend announcement below.
Final Dividend
CAL announces that the Company’s Directors will be recommending to the shareholders at the upcoming Virtual Annual General Meeting, the payment of a final dividend of GHS 0.11 per share for the financial year ended December 31, 2020.
Qualifying Date
All shareholders registered in the books of CAL at the close of business on Wednesday, 5th May, 2021 will qualify for the final dividend
Closure of Register
The Register of shareholders will be closed on Thursday, 6th May, 2021.
Ex-Dividend Date
In view of the foregoing, the ex-dividend date has been set as Monday, 3rd May, 2021. Consequently, an investor purchasing CAL shares before this date will be entitled to the final dividend. However, an investor buying CAL shares on or after Monday, 3rd May, 2021 will not be entitled to the final dividend.
Dividend Payment Date
The final dividend will be paid from Wednesday, 9th June, 2021.
