MultiChoice’s Phuthuma Nathi shareholders to get over R1.37bn in dividends

The share scheme has over 75 000 black shareholders.

Phuthuma Nathi – JSE-listed MultiChoice Group’s local black economic empowerment scheme – will distribute R1.375 billion in dividends this year.

The group confirmed the payout in a statement on Tuesday. Established in 2006 to provide black South Africans with an opportunity to indirectly own a stake in MultiChoice South Africa, Phuthuma Nathi has more than 75 000 shareholders.

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MultiChoice said shareholders in the scheme, including domestic workers, gardeners, professionals, stokvels, and small businesses, will receive R20.37 per share (R16.30 after dividend tax) in early September.

Despite a challenging macroeconomic environment, MultiChoice SA’s chair Elias Masilela expressed satisfaction with the company’s ability to grow earnings and cash flows, allowing for a stable dividend.

“We see dividends as an important driver of Phuthuma Nathi’s shareholder value and are proud of the difference they’ve made to the lives of ordinary South Africans over the years, from paying for their children’s education to being a source of additional income during difficult times,” said Masilela.

Read: Phuthuma Nathi’s BEE shareholders score

Phuthuma Nathi chair Mandla Langa highlighted the scheme’s impact by stating: “This share scheme is a testament to MultiChoice’s dedication to support participation, inclusivity and diversity in South Africa’s economy. Since 2006, Phuthuma Nathi has received R19.1 billion in dividends from MultiChoice, which has allowed us to deliver exceptional value for our shareholders.”

An initial investment of R4 000 in Phuthuma Nathi shares in 2006 would now be worth R42 400, with over R65 256 earned in dividends — a 30% annual return over 18 years, far surpassing market benchmarks. ADVERTISEMENT: CONTINUE READING BELOW

However, Langa also emphasised that some shareholders have missed out on dividends due to their banking details not being updated or due to deceased shareholders.

Since 2020, Phuthuma Nathi has paid out R116 million in previously unclaimed dividends, but R215 million remains unclaimed. The company is urging shareholders or their families to contact the Phuthuma Nathi call centre to ensure they receive their dividend.

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