NICOL investors happy as dividend rises

ARUSHA: NICOL Investment Plc shareholders are set to receive a significant boost to their returns after the company’s Annual General Meeting approved a 38 per cent dividend increase.

The dividend was raised from 53/- per share last year to 70/-, lifting the total payout to 4.3bn/- compared with 3.2bn/- distributed in the previous year, reflecting a year of strong financial recovery and disciplined strategic execution.

NICOL Chief Executive Officer (CEO), Erasto Ngamilaga, said at the meeting over the weekend that last year the Group recorded a profit after tax of 9.1bn/-, a significant increase of 34 per cent compared to 6.8bn/- reported in 2023.

“This was supported by stronger earnings from our investment portfolios, real estate activities and new market ventures,” said Mr Ngamilaga at the meeting where turnout exceeded expectations.

The mutual fund total revenue grew by 26 per cent to 15.601bn/- up from 12.388bn/- in 2023, on year-on-year increase, driven by income from newly consolidated subsidiaries and expanded operating income sources.

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“The 2024 was marked by a strong financial recovery, disciplined execution of our strategic plan, expansion into new income-generating activities and steady improvement in our key performance indicators,” the CEO said.

NICOL cost-to-income ratio stood at 22 per cent at the end of last year well below their internal benchmark of 25 per cent, demonstrating continued focus on cost control and operational discipline. NICOL Board Chairman Dr Gideon Kaunda said they are coming with newly promulgated company’s dividend policy which can now be applied by the Board in making predictable and sustainably manageable dividend decisions.

“This malleable dividend policy is an important transformation, intrinsically embedded in NICOL’s commitment to equitable investor-income disbursement, sound capital injection in new projects and regulatory adaptation,” Dr Kaunda said.

Additionally, he said, NICOL shares have become attractive and well sought-after at the national bourse, the DSE, showing admirable improvement last year. The stock was traded at 950/- per share, in 2024 up from 850/- per share in 2023. As of last Friday, the shares were trading at 1,850/- apiece on the DSE.

Shareholder Bernadeta Joseph said she was encouraged by NICOL’s continued growth and its potential to deliver higher shareholder value.

“I am happy to see the positive development of our company and I urge NICOL leaders to continue doing well so that they can increase dividends for members,” she said.

Another shareholder Boaz Malay welcomed the dividend growth, noting it reflected strong management and reliable returns.

“NICOL’s subsidiary, NICOLAND Development Company, reactivated in 2022, has been repositioned to pursue opportunities in real estate, infrastructure and joint ventures. In its first full year of operations, the unit posted a profit of 609m/-, driven mainly by land trading, underscoring its commercial viability and entry into a strategic sector.