Total Petroleum has announced an interim dividend of GHc 0.0694 per share for the 2020 financial year ending December 31, 2020. Based on the company’s corporate practices over the last decade, it is likely to declare a final dividend in respect of the 2020 financial year later in 2021.
The interim dividend would result in a dividend yield of three percent given the company’s current market valuation of GHc2.35 per share. This in itself would be a welcome relief to shareholders who seen the company’s share price drop by nearly 22 percent so far this year which is even worse than the GSE composite index’s 19.4 percent year to date fall – but a final dividend declaration early next year can be expected to double the dividend yield and cut the capital losses by nearly a third.
Total is regarded as a blue chip company on the GSE and so institutional investors in particular are likely to maintain their holdings despite the company underperforming a bear market so far this year. However the poor performance has seen the usual strong unsatiated demand for the company’s shares dissipate and this is curtailing the likelihood of a share price rebound imminently. But the interim dividend and the prospect of a final one following it could generate increased demand for the company’s shares.
Nevertheless, a complete price turnaround is dependent at least in part on a transformation of the ongoing three year bear market into a bull market, which is inevitable sooner or later as price earning rations reach historic lows.
All shareholders registered in the books of Total at the close of business on Thursday, 3rd December, 2020 will qualify for the interim dividend.
The Register of shareholders will be closed from Monday, 7th December, 2020 to Friday, 11th December, 2020 (both dates inclusive)
In view of the foregoing, the ex-dividend date has been set as Tuesday, 1st December, 2020. Consequently, an investor purchasing TOTAL shares before this date will be entitled to the interim dividend. However, an investor buying TOTAL shares on or after Tuesday, 1st December, 2020 will not be entitled to the interim dividend.
The interim dividend will be paid from Monday, 14th December, 2020.