Black investors in Phuthuma Nathi, the broad-based black economic empowerment arm of pay-TV operator MultiChoice, will share more than R1.3 billion in dividends.
An ordinary dividend of R20.37 per share before dividend tax (R16.30 after tax) will be paid to Phuthuma Nathi shareholders in the first week of September 2023.
“Despite the challenging macro-economic environment, which is also having a severe impact on our Phthuma Nathi shareholders, the board declared a dividend again this year,” Imtiaz Patel, MultiChoice SA chair, said.
“We want to lend a helping hand during these trying times to our 77 000 shareholders who come from all walks of life including domestic helpers, gardeners, professionals, stokvels and small businesses. We believe this dividend will bring much needed relief.”
If an investor bought 400 Phuthuma Nathi shares in 2006 at R10 per share (an investment of R4000), their shares would be worth approximately R50 000 (based on a share price of R125 on 4 August 2023). The same investor would have also received dividends (after tax) amounting to R65 000 (including the dividend to be paid in September 2023), bringing the total return on investment to R115 000 – which is 29 times the initial investment.
“Phuthuma Nathi is a truly broad-based black economic empowerment scheme and one of the most successful BBBEE schemes in South Africa,” Phuthuma Nathi chair, Mandla Langa, said.
“It has been delivering great value for our shareholders, who have received dividends every year since the scheme was implemented in 2006. To date, Phuthuma Nathi will, after payment of this year’s dividend, have received R17.8bn in dividends from MultiChoice SA.”
Phuthuma Nathi 1 has yielded a 31% annual return to investors over the past 17 years, of which roughly 16% was capital growth and the remainder being dividends received.
It is rather unfortunate that some shareholders are losing out by not claiming their dividends, which is mainly because they have failed to update their banking details or have been deceased.
“We’ve been trying to reach these shareholders or their family members to pay the money that is rightfully theirs. Whilst we have already paid out R109m in unclaimed dividends, there is still R204m to be claimed,” concluded Langa.
Anyone who has ever owned Phuthuma Nathi shares, or knows of someone in their family who did, should please reach out to us via the Phuthuma Nathi call centre, at 086 011 6226.
