VFD Group Proposes N0.25 Dividend Amid Rights Issue

VFD Group Plc's board of directors has proposed a final dividend of N0.25 per share for the financial year ending December 31, 2025, which represents a total payout of approximately N3.2 billion and a payout ratio of 32.2%. This dividend proposal is subject to shareholder approval at the upcoming annual general meeting (AGM).

The dividend translates to an annualized return of 10% for shareholders participating in the rights issue priced at N10.00 per share, which is expected to launch in late 2025. Nonso Okpala, the Group Managing Director and CEO of VFD Group, emphasized the importance of maintaining a balanced approach to reward shareholders in the short term while retaining sufficient earnings to fund future growth.

The rights issue is seen as a strategic move to support the group's next phase of expansion. The company's share price has appreciated to approximately N12, reflecting a 20% gain year-to-date.