UPDATED: United Capital proposes dividend of 50 kobo per share


* Proposes dividend of 50 kobo per share, to be paid on March 22, 2017

Investors have swooped on the share price of United Capital Plc following its impressive 2016 results as the company’s profit margins continues to gain momentum.
The investment house’s share price rose 3.52 percent to close at N3.82 2:00 pm the floor of the exchange. Year to date Return (YTD) 39.93 percent, outperforming the NSE ASI of 0.44 percent.
For the year ended December 2016, United Capital’s net margins, a measure of profitability and efficiency spiked to 75.11 percent as against 41.78 percent as at December 2015.
The 2016 audited financial statement shows net income surged by 168.87 percent to N6.91 billion from N2.57 billion the previous year.
The company was able to costs while bolstering profit as cost to income ratio (CIR) moved fell to 29.22 percent in the period under review from 52.55 percent the previous year. Operating expenses was down by 18.57 percent to N2.63 billion.
United Capital has a steady dividend policy that has attracted investors over time as it proposed a dividend of N0.50 on its 6 billion ordinary shares. Dividend yield (DY) stood at 13.05 percent, according to data gathered from Bloomberg.
The company has a strong price-to-book ratio, which measures the stock price against the value of assets minus liabilities. This makes its shares attractive to investors that crave for firms with a bright future.

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