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Eaagads stock gets lift from dividend and bonus issue

Sunday, September 30, 2012 — updated on December 26, 2020 - 2 min read

Investors at the Nairobi Securities Exchange: Eaagads share sclosed at an average price of Sh51.00 on Friday. File

Shares of listed agricultural company Eaagads have risen by more than 50 per cent, boosted by a dividend and bonus announcement, making it the best performing stock in the past three months.

The share closed at an average price of Sh51.00 on Friday, 56.9 per cent above its closing price of Sh32.50 at the end of June according to data from the Nairobi Securities Exchange (NSE).

Investors have been scrambling to acquire the stock ahead of closure of the shareholders’ register on October 5.
The agricultural firm also announced a dividend payment of Sh1.25 for every share held, payable on November 16. Moses Waireri, a research analyst at Genghis Capital, said Eaagads appears set to benefit from the prevailing high coffee prices, though the gains may be cut by volatility in international markets. Mr Waireri predicted that the rally may end once the shareholder register closes for the bonus share issue.
“Historically prices come down (after the payments) so I would expect the price to come down,” said Mr Waireri. Eaagads has 16.078 million issued shares, making it one of the counters with the fewest shares in the market, although it pays out most of its profits in dividends.