Dividend yields are a key indicator for more sophisticated investors who buy stocks with a longer term outlook, as opposed to speculators who take positions solely to benefit from share prices going up.
The recent rally in share prices at the Nairobi bourse has pulled down dividend yields, which are a key consideration for longer term investors seeking a stable return without selling their shares for capital gains.
Out of the 31 listed firms which have paid a dividend this year, 25 have seen their dividend yields fall below 10 percent, compared to a year ago when 16 out of 31 were returning more than 10 percent in dividend yields.
