MultiChoice is set to distribute a dividend of R1.375 billion to Phuthuma Nathi shareholders for the financial year concluding on March 31. The dividend approval occurred during the recent annual general meeting (AGM). Shareholders are poised to receive R20.37 per share prior to dividend tax (R16.30 post-tax) in the first week of September.
Despite prevailing challenging macro-economic conditions, MultiChoice SA Chairperson Imtiaz Patel emphasizes the company’s commitment to extending a helping hand to its diverse shareholder base of 77,000 individuals, including professionals, small businesses, domestic helpers, gardeners, and stokvels. This dividend is anticipated to offer much-needed relief during these trying times.
Phuthuma Nathi Chairperson Mandla Langa highlights the scheme’s success as a broad-based black economic empowerment initiative. Since its inception in 2006, the scheme has consistently delivered substantial value, with shareholders receiving dividends annually. The cumulative dividends from MultiChoice SA to Phuthuma Nathi are projected to reach R17.8 billion following this year’s payment.
For those who invested in 400 Phuthuma Nathi shares at R10 per share in 2006, their shares would now be valued at about R50,000, based on a share price of R125 as of August 4, 2023. The total return on investment, including dividends, for the same investor is estimated to be R115,000—29 times the initial investment.
MultiChoice notes that Phuthuma Nathi 1 has yielded a 31% annual return over the past 17 years, comprising 16% capital growth and the remainder in dividends. However, the company laments that some shareholders miss out on dividends due to outdated banking information or their passing. Unclaimed dividends amounting to R204 million remain, with efforts ongoing to ensure rightful payment.