@guru, I agree with you entirely. In fact, the crappy dividend is only paid once a year. How can a company make 4bn and pay out 0.25m. Something must be very wrong here.

@Ericcson

It is difficult to declare a bank with multinational link like BBK as dead.If it was an indegenous bank without any secondary interest like Govt, multinationals., you would have made a valid point.

It would be hard for barclays HQ in UK to allow BBK die when more opportunities are coming and the economy is opening up.

This is just a down cycle of BBK, it will re-invent itself and move on.

For your info I am looking for 10,000 units of BBK to position for the bright future at 16.00 bob , I have already bought 5,000 units at 16.20 but I will still wait to get the balance at 16.00 bob or blow.

The situation of BBK is not as bad as Uchumi that made losses.
From my point of view , this is the time to key in at the bottom, for long standing shareholders it is better to hold it as the worst will be over in a couple of years with better focus and leadership.

Be aware KCB made a loss in year 2002, but it is a success story today.
My view is from long term perspective.

Give @the deal his props.He called it.

@stocksmaster
Your arguement does not add up in terms of miserly dividend of CFC stanbic.

There is no way that your dividend will be 6 figures when the capital gain is 7 figures !!!

Your defence of 10 cents interim dividend was not typical of you, be factual as before as nobody is perfect.

You should rather emphasize that you are playing for capital gains not income, therefore you do not care about dividend.
That sounds more logical.

Standard Bank Kenya Unit Climbs to Two-Year High on Profit Jump

Is CFC Stanbic bank similar to standard bank?

Greetings dear @stockmaster, are you still on this dividend arguement ?

Yes I admit my mistake the interim from CFC stanbic is 0.63 rather than 0.10 ksh. That not witstanding 0.63 interim dividend is tOOOOOOOOO misely compared to the last closing price of 69.00 bob. There is no two way about that.

CFC and some other mid tier companies give misely dividends so you should not be all out to defend that otherwise you confuse innocent new investors.
HFCK at 26 bob gave an interim divided of 0.75bob, can you compare that with CFC stanbic you are drumming about ?


Simply put any company with a dividend yield less than 3% is not salutory from my own investment perspective.

Be aware different people have different investment objectives. For me my emphasis is dividend yield with moderate gains not capital gains or speculation like you.

Speculation did not work for me so I had to change my strategy several years back.

Giving interim dividend is not a big deal, what is important is the dividend yield.
CFC is a poor dividend stock whether you admit that or not relative to its value.

I will not argue on this again as it will be a round robin talk as you find it hard to accept that CFC Stanbic and other mid tier stocks do not give good dividends.
Last year CFC Stanbic dividend yield was 1.5%, equity for example was 5.1%. Can you compare that ?

Yes you can say CFC will GROW faster but I can say EQUITY will Yield faster in terms of return to shareholders plus moderate capital gains. That is the essence of PE ratio.

Your timing of the market is superb and salutary which is very commendable for speculators and those that need quick capital gain, that I believe is your strength which you are sharing. This is very admirable. But you
should admit that when you position dividend is not your priority so there is no point defending a low dividend yield company for no justifiable reason. You should admit that there is nothing so special about interim dividend if it is miserly relative to its value
and the total dividend.
For relative yields cum moderate gains I prefer NMG over SCANGROUP, BAM over ARM, HFC over COOP.

With Regards

Dividend yield protects stocks during market sell offs...

When the bears return one cannot compare the slaughter in the low dividend paying mid tiers to the high dividend paying blue chips!

Stocks like Kenya re could be below 8bob pap tomorrow if the market was only accepting above 5% yield...