VFD Group Proposes N0.25 Dividend for Shareholders

VFD Group Plc has proposed a final dividend of N0.25 per share, which translates to an annual return of 10% for shareholders. This proposal is subject to approval at the upcoming Annual General Meeting (AGM).

The total payout is estimated to be approximately N3.2 billion, representing a payout ratio of 32.2%. The company aims to maintain a balanced approach that rewards shareholders in the short term while retaining sufficient earnings to fund future growth and enhance overall valuation.

VFD Group plans to launch a rights issue in late 2025, allowing shareholders to subscribe to new ordinary shares at N10.00 each, supporting the group's next phase of expansion. Nonso Okpala, the Group Managing Director and CEO, emphasized the importance of a disciplined approach to sustaining dividend payments and creating long-term value.

The company's share price has appreciated to approximately N12, reflecting a 20% gain year-to-date.