Shareholders of National Investment Company Limited (NICOL) have ample reason to rejoice after the mutual fund approved a significant 16% increase in dividend per share for the previous year. This announcement was made during the 9th Annual General Meeting held in Dar es Salaam last week.
The decision, endorsed by NICOL shareholders, entails a raise in dividdividends 37/- per share in 2021 to 43/- for the past year. CEO Erasto Ngamilaga expressed his satisfaction with the shareholders' approval, confirming that 2.6 billion Tanzanian shillings would be utilized for this purpose, with payments scheduled for the first Monday of December.
Ngamilaga highlighted the implementation of the shareholders' recommendations, emphasizing substantial investments in productive projects. He stated, "Shareholders are very happy because the recommendation they gave to the management in the last year’s AGM has been implemented, including large investments in productive projects."
Ngamilaga further outlined NICOL's long-term strategy, focusing on investments in the agriculture sector due to identified opportunities in the industry.
The ex-dividend trading for NICOL shares is expected to commence towards the end of the month, following this positive announcement. NICOL's future plans include capitalizing on opportunities within the agriculture sector, in alignment with government strategies aimed at boosting the environmental sector. Additionally, NICOL aims to explore investment opportunities in energy, minerals, and gas. The company is in the process of establishing a subsidiary dedicated to this area, emphasizing the promising prospects within the energy sector.
NICOL Chairman, Dr. Gideon Kaunda, attributed shareholders' happiness to their investments in government securities and real estate. He specifically highlighted the acquisition of Mirambo Street Properties, the owner of the Milambo 50 building, as a significant achievement for NICOL. Dr. Kaunda expressed optimism, stating, "Among our big achievements of last year is buying Mirambo Street Properties. We expect next year the dividend will double."
NICOL, listed on the Dar es Salaam Stock Exchange, has experienced remarkable growth, with its share price appreciating from 270/- at the beginning of the year to 500/- last week. Founding shareholder Alan Mwaigaga expressed his satisfaction with NICOL's steady growth, calling it a "smart investment." Shareholder Suzana Michael lauded NICOL’s achievements, noting, "This is a great success compared to where we came from."
NICOL's progressive strides in the financial market continue to bolster investor confidence, marking the company as a promising player in Tanzania's economic landscape.