KenGen and Kenya Power share prices have retreated from recent highs, ending a rally backed on the expectation of improved earnings and dividend prospects on the counters.
The share price of electricity generating firm KenGen has for instance fallen by 16.3 percent from its recent Sh4.13 high on October 29 to Sh3.46 on Friday last week following the book closure on Thursday for the payment of a Sh0.65 per share dividend.
Kenya Power’s share price which also peaked on October 29 at Sh5.24 has also retreated, dipping by 13.6 percent to Sh4.53 ahead of the book closure on Monday for the payment of a Sh0.70 per share dividend.
The share price of East African Portland Cement (EAPC) Plc which declared a rare Sh1 per share dividend last Thursday has also retreated, falling 33.9 percent to Sh32.55 since peaking on October 9 at Sh50.5.
All three counters rallied throughout September, driven largely by speculation among retail investors who expected the firms to deliver a stellar set of financial results and pay dividends.
KenGen, a regular dividend paying counter more than doubled its dividend payout from Sh0.30 per share previously as its net profit jumped 35.5 percent to Sh6.79 billion for the year to June 2024 from Sh5.01 billion previously.
The improved performance for the electricity generating firm was hinged on higher revenues which hit Sh56.2 billion from Sh53.9 billion a year prior.
KenGen closed its books for the dividend on Thursday with the payout expected around or on February 13, 2025.
Higher sales and a stronger shilling meanwhile helped Kenya Power end a six-year dividend drought after it posted a Sh30.08 billion profit for the year to June 30, 2024, recovering from a net loss of Sh3.19 billion.
Kenya Power will on Monday close its book for the payment of the dividend which totals to Sh1.3 billion, with the distribution expected to be made on or around January 31, 2025.
EAPC whose return to profitability was anchored on fair value gains on its land holdings meanwhile closes its book for the payment of the dividend which totals Sh90 million on December 31, 2024 with the payout set around or on February 28, 2025.
The cement maker booked Sh3 billion in paper gains from the fair value gains on investment properties, down from Sh644.5 million last year.
The firm had pre-empted the end of its dividend drought, driving speculation on the Nairobi Securities Exchange (NSE) traded stock.
The retreat of the firms' share prices implies that the ratio of shareholders pay or the dividend yield is higher assuming all three firms maintain their dividend distributions in the current financial year.
KenGen dividend yield stands at a high of 18.7 percent while Kenya Power’s and EAPC’s shareholder cash returns sit at 15.4 percent and 2.9 percent respectively.
The dividend yield is reached by dividing the annual dividend payout by the stock’s prevailing share price.
