Dangote Cement Plc has secured the prestigious Dividend Paying Company of the Year award at the recently held Nairametrics Capital Market Choice Awards, which took place on May 23, 2025, in Lagos, Nigeria. The event celebrated standout companies that continue to fuel Nigeria’s economic development through the capital markets.
Award Highlights Company’s Shareholder Commitment
This year’s award ceremony revolved around the theme: “Capital Market as a Catalyst for Nigerian Economic Transformation.” Among the leading contenders for the award were Airtel Africa and the Nigerian Aviation Company, but Dangote Cement ultimately took the top honor, recognized for its unmatched consistency in delivering shareholder value.
For years, the company has built a reputation for strong and reliable dividend payouts. Since 2018, Dangote Cement has maintained a dividend of at least N10 per share, eventually raising it to N16 and sustaining that amount through 2022. In 2023, the board approved a further increase to N20, and later raised it again to N30 per share for the same financial year.
Continuing that upward trend, the company will maintain the N30 per share dividend into FY 2024, with payment scheduled for Monday, June 23, 2025. Shareholders listed on the company’s register by Monday, June 9, 2025, will qualify to receive the final dividend, which is subject to standard withholding tax.
Massive Payout Signals Strong Market Value
The N30 per share final dividend translates into a total shareholder payout of N506.206 billion. At a share price of N440, this figure represents a dividend yield of 6.81%, offering investors a compelling return.
What’s more, the dividend represents a payout ratio of 100.59%, demonstrating the company’s willingness to return nearly all its earnings to shareholders. From a valuation standpoint, Dangote Cement’s price-to-earnings (P/E) ratio of 12.22x stands far below the industry average of 41.81x, potentially signaling that the stock remains undervalued despite its strong financial performance.
Q1 2025: A Strong Start to the Year
Dangote Cement kicked off 2025 with a robust financial showing. In its unaudited results for Q1 ended March 31, 2025, the company reported a pre-tax profit of N311.974 billion, marking an impressive 87.48% surge from N166.404 billion in Q1 2024.
The company’s income statement highlighted the success of its revenue-generating strategies, particularly in the domestic market. Revenue from Nigeria climbed to N696.042 billion, which raised the country’s contribution to group-wide revenue from 55.41% in Q1 2024 to nearly 70% in Q1 2025.
Despite ongoing pressures from operating costs, especially fuel and power—which amounted to N177.193 billion—the company managed to control overall expenses. Significantly, its cost of sales rose more slowly than revenue, allowing for a stronger gross profit and an impressive improvement in gross margin, which rose to 59%, up by 15 percentage points compared to the same period last year.
Solid Balance Sheet Reinforces Long-Term Growth
In addition to strong income growth, Dangote Cement also bolstered its financial position. The company’s retained earnings climbed to N1.2 trillion, up from N1.027 trillion recorded in the same quarter a year earlier. This substantial increase reflects both profit retention and the firm’s capacity to sustain future payouts.
With robust cash flows, strong profitability, and healthy balance sheet metrics, Dangote Cement continues to demonstrate that it not only leads in production and market share but also in investor returns and financial discipline.
Final Thoughts: A Benchmark for Corporate Performance in Nigeria
Dangote Cement’s recognition as the top dividend-paying firm reinforces its status as a pillar of Nigeria’s capital market. While many companies have struggled to maintain returns amidst macroeconomic volatility, Dangote Cement has consistently delivered high shareholder value, even amid rising production costs and inflationary pressures.
By pairing aggressive reinvestment with generous dividend policies, the company sets a benchmark for shareholder-focused governance in Nigeria. As the capital market continues to evolve, Dangote Cement’s model of balancing growth with rewarding investors may inspire other firms to follow suit.
With its sustained profitability, increasing local market share, and attractive dividend yield, the company remains a standout stock for long-term investors seeking both stability and strong returns in Nigeria’s dynamic business environment.
