The SEMDEX is yielding the highest dividend in its recent history

The SEMDEX, which is an index of prices of all listed stocks where each stock is weighted according to its share in the total market capitalisation, is currently offering a dividend yield of 4.5%. This is above its historical average. 

Across the SEMDEX, 17 companies out of 38 are paying a higher Dividend Per Share (DPS) compared to 2019, boosted by higher profitability. However, warns AXYS Stockbroking, which provides a short analysis for some companies listed on the Stock Exchange of Mauritius according to their dividend yields, some of these increases might be temporary.

In terms of rationale, the MCB Group remains the most consistent dividend-paying company with successive dividend increases each year. The group distributes around 33% of its earnings each year as dividend, and dividend yield currently stands higher than historical average (3.6%).

Dividend per Share for SBM Holdings remains lower than pre-COVID (Rs 0.20 in 2022 v/s Rs 0.30 in 2019). With expected record earnings in Financial Year 2023, there might be an increase in DPS (Editor’s Note: See article on SBM Holdings).

ENL Group is offering a slightly lesser yield of 5.3% compared to its subsidiary, Ascencia. Nevertheless, according to AXYS Stockbroking’s estimation, ENL is currently trading at a massive discount to its intrinsic value of around Rs 27.29.

Afreximbank is currently paying USD 0.25 annual dividend and is currently benefiting from loan growth, high quality asset and a strong capital adequacy. Nevertheless, DPS is not expected to increase in the short-term, as management is currently trying to reduce the discrepancy in dividend payment between Class D shareholders and other classes.

Medine continues to enjoy high cash generation, with around Rs 2.5 billion in Net Cash Flow from Operating Activities, driven by the realization of its real estate projects. As a result, the group should have sufficient inflows to continue its dividend payments.