NSE Share Prices Fall Increases Divinded Profit

Between Monday and Friday last week, the Nairobi Securities Exchange (NSE) lost Sh 108.3 billion in paper wealth amid the Russia-Ukraine crisis.

Due to the fall in share prices, dividend profit has become higher, with bank stocks being the most suitable wager for investors who enter the mark under current conditions. The lower prices have given a striking entry point for most profit from dividends.

Even as the reporting period for many companies for the 2021 financial year is coming to an end, lenders at the NSE are anticipated to put into account higher earnings for the 2021 financial year compared to 2020.

In 2021, lenders jointly made Sh 194.8 bn in gross profit, which translates into record net earnings, given their constant efforts to cut costs.

A victim of the recent sell-off is the telco`s stock. However, from an announcement made on Friday, its interim dividend of Sh 0.64 per share helped it regain its ground.

Safaricom, NSE`s largest company by market capitalization, has become a desired dividend stock, due to its policy of paying out 80% of net earnings to shareholders.

The share price had dropped from Sh 37.95 on Monday to Sh 34.55 on Thursday but reassembled to trade on Friday at Sh 35.65.