By Business Insider Reporter
The “Dividend Season” in Tanzania, which runs from June to August, kicks off in earnest this week, poised to deliver significant returns for investors on the Dar es Salaam Stock Exchange (DSE).
This crucial period sees many companies listed on the bourse announce and pay dividends, typically aligning with the annual financial reporting cycle of the listed firms.
For local investors and market watchers, this is a time of heightened anticipation and optimism, as some of the country’s largest companies prepare to reward their shareholders.
Twiga Cement
One of the most eagerly awaited dividend announcements this season comes from Tanzania Portland Cement Plc (Twiga). The company’s board of directors has proposed a dividend of TSh 600 per share for the financial year ending 31 December 2024.
This payout is subject to approval at the company’s upcoming Annual General Meeting (AGM) scheduled for later this year. Should the proposal be greenlit, shareholders can expect the dividend to be paid on or around 30th June 2025.
NMB Bank dividends reflect strong performance
Meanwhile, NMB Bank, a leading financial institution in the country, has also announced a substantial dividend for its shareholders.
The directors have proposed a payment of TSh 428.85 per share, translating to a total payout of TSh214.4 billion. This generous dividend is drawn from the bank’s impressive 2024 profit after tax of TSh643 billion.
Shareholders will have to wait for approval at the 25th Annual General Meeting on Thursday, 5th June 2025. If approved, NMB Bank will pay out the dividend on or around June 19th, 2025.
Investor optimism drives market activity
As the dividend announcements roll in, investor sentiment remains high.
According to a recent report by Orbit Securities, local investors are optimistic about the upcoming dividend season, anticipating substantial payouts from several Tanzanian companies.
This optimism has already translated into increased participation in the DSE, with a 17% rise in turnover and a 7.5-point increase in the Tanzania Share Index (TSI).
The surge in market activity signals strong confidence in the local economy and the stability of leading Tanzanian firms. Many analysts believe that the dividend season could further stimulate the stock market, attracting both local and international investors looking to capitalize on the attractive returns.
What to expect moving forward
As the dividend season heats up, shareholders will be closely monitoring further announcements from other listed companies. The payout trends this season are expected to mirror the positive economic performance of Tanzania’s key sectors, including banking, cement, and manufacturing.
For investors, the upcoming period offers an opportunity to both receive attractive dividend payments and reassess their positions in the Tanzanian market.
With the DSE poised to benefit from this season of payouts, all eyes will be on the exchange in the coming months to see how these dividends affect stock prices and investor confidence.
Who benefits from the NMB dividend?
As in previous years, the Government, as a key shareholder in NMB Bank, with a 31.8% stake will receive a significant portion of the dividend. The about TSh 204.5 billion it receive will be used to finance the forthcoming budget, supporting national economic development.
In addition to the government, other institutional investors, local and international stakeholders, and individual shareholders will receive their share of the dividends, providing a source of income for many Tanzanians.
The other NMB Bank share includes the strategic investor Arise BV with a 34.9% stake, the general public (10.9%) and other investors (22.4%).
CRDB Bank Plc
Last year, CRDB Bank improved its dividend value by 11% due to 21% increase in after-tax to TSh 432 billion in 2023 from TSh 351 billion in 2022.TSh 50 per share to shareholders for fiscal year 2023, bring the total dividend to TSh 131 billion.
Speaking during the Annual Investors Forum held in Dar es Salaam in early May, Group CEO and Managing Director, Abdulmajid Nsekela, announced that the Group’s profit after tax had surged by 30.3% in 2024 to reach a record TSh 551 billion.
