\u201cWith dividends reinvested, the investment has grown in U.S. dollar terms after inflation, despite naira devaluation,\u201d Kadri said during the company\u2019s third-quarter earnings call.\n<\/p>\n
The analysis highlights the contribution of dividend payments to long-term shareholder returns, particularly as currency depreciation and inflation have eroded the value of naira-denominated investments.\n<\/p>\n
MTN said its investment performance exceeded the reported real returns from Nigerian sovereign Eurobonds, which stood at 3.6 percent, while treasury bills recorded a negative real return of 13.6 percent over the comparison period.\n<\/p>\n
However, the performance may not be easily replicated across the broader equity market, as other dividend-paying companies would need to sustain earnings growth and shareholder distributions while protecting returns against currency depreciation.\n<\/p>\n
Read also:\u00a0Global bond sell-off puts Nigeria\u2019s Eurobond refinancing under pressure<\/a><\/strong><\/p>\n Kehinde Jones, head of research at Anchoria, said other dividend-paying companies listed on the Nigerian Exchange could potentially deliver similar inflation-adjusted dollar returns, but MTN\u2019s performance may be exceptional.\n<\/p>\n \u201cMTN\u2019s 9.9 percent annualised real dollar return should not be treated as a standard market expectation,\u201d Jones said, adding that similar returns would depend on companies\u2019 earnings growth, dividend sustainability and ability to protect shareholder value against currency depreciation.\n<\/p>\n The distinction is important because MTN\u2019s calculation goes beyond changes in its share price. Reinvesting dividends allows investors to use cash distributions to acquire additional shares, increasing their holdings and potential returns from subsequent price appreciation and dividend payments.\n<\/p>\n MTN\u2019s December 2021 public offer was priced at N169 per share and involved the sale of up to 575 million existing shares by its parent company, MTN Group. The offer attracted more than 126,000 investors and was oversubscribed, with total subscriptions reaching 802 million shares.\n<\/p>\n Read also:\u00a0Gabon raises $580m in Eurobond as investor demand nears $1bn<\/a><\/strong><\/p>\n The transaction was part of MTN Group\u2019s effort to broaden local ownership of its Nigerian subsidiary and deepen participation in the country\u2019s capital market.\n<\/p>\n However, the reported returns reflect a specific investment scenario based on the public offer entry price and the reinvestment of dividends. They should not be interpreted as guaranteed returns for investors buying MTN shares at current market prices.\n<\/p>\n The comparison nevertheless illustrates how dividend-paying equities can contribute to long-term wealth creation, even in an economy that has experienced significant currency depreciation and inflation.<\/p>\n Ayomide Odunlami is a Tax Reporter at BusinessDay, covering Nigeria\u2019s tax reforms, compliance trends, and government revenue strategies. She reports on how evolving tax policies affect businesses, investors, and the broader economy, providing clarity on complex regulatory issues through data-driven journalism.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n Source: <\/p>\n Investors who bought shares in MTN Nigeria\u2019s December 2021 public offer and reinvested their dividends earned an annualised real dollar return of 9.9 percent through September 2026, outperforming investments in… <\/p>\n","protected":false},"author":1,"featured_media":8213,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-8212","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/8212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=8212"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/8212\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media\/8213"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=8212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=8212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=8212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Related News<\/h4>\n<\/p><\/div>\n
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