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411 on dividend and AGM
Rank: Elder Joined: 12/4/2009 Posts: 10,773 Location: NAIROBI
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MaichBlack wrote:And the issue of dividends is very hot and even Paul Russo has spoken on it in several interviews.
I believe the KCB Board will try to balance growth and dividends moving forward. What is he doing about it? Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/22/2009 Posts: 7,548
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Ericsson wrote:MaichBlack wrote:And the issue of dividends is very hot and even Paul Russo has spoken on it in several interviews.
I believe the KCB Board will try to balance growth and dividends moving forward. What is he doing about it? There are good reasons why they are not paying. 1) Some subsidiaries are not remitting their profits but using them for growth. 2) Regional expansion. This leaves less money for distribution as dividends. What happens moving forward? 1) At some point subsidiaries will start remitting more and more of their profits depending on growth requirements which is not linear. Growth requirements are higher at the beginning. 2) Regional expansion is not is not an annual thing. You don't go to new country/market every year. And the two above are not even bad things. If they can continuously and profitably invest in growth even better!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 8/10/2014 Posts: 989 Location: Kenya
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MaichBlack wrote:Ericsson wrote:MaichBlack wrote:And the issue of dividends is very hot and even Paul Russo has spoken on it in several interviews.
I believe the KCB Board will try to balance growth and dividends moving forward. What is he doing about it? There are good reasons why they are not paying. 1) Some subsidiaries are not remitting their profits but using them for growth. 2) Regional expansion. This leaves less money for distribution as dividends. What happens moving forward? 1) At some point subsidiaries will start remitting more and more of their profits depending on growth requirements which is not linear. Growth requirements are higher at the beginning. 2) Regional expansion is not is not an annual thing. You don't go to new country/market every year. And the two above are not even bad things. If they can continuously and profitably invest in growth even better!! Just like having endless bullets might tempt a soldier to shoot wildly instead of aiming carefully, excess capital can lead to careless or undisciplined investments. KCB has the potential to suffer from this
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Rank: Veteran Joined: 11/13/2015 Posts: 1,612
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watesh wrote:MaichBlack wrote:Ericsson wrote:MaichBlack wrote:And the issue of dividends is very hot and even Paul Russo has spoken on it in several interviews.
I believe the KCB Board will try to balance growth and dividends moving forward. What is he doing about it? There are good reasons why they are not paying. 1) Some subsidiaries are not remitting their profits but using them for growth. 2) Regional expansion. This leaves less money for distribution as dividends. What happens moving forward? 1) At some point subsidiaries will start remitting more and more of their profits depending on growth requirements which is not linear. Growth requirements are higher at the beginning. 2) Regional expansion is not is not an annual thing. You don't go to new country/market every year. And the two above are not even bad things. If they can continuously and profitably invest in growth even better!! Just like having endless bullets might tempt a soldier to shoot wildly instead of aiming carefully, excess capital can lead to careless or undisciplined investments. KCB has the potential to suffer from this Yes that was my fear about KCB, having too many moving parts. The saving grace is that the board/CEO responds well to valid criticism. E.g. they stopped jumping into bed with GoK for quickie deals
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Rank: Elder Joined: 7/22/2009 Posts: 7,548
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watesh wrote:MaichBlack wrote:Ericsson wrote:MaichBlack wrote:And the issue of dividends is very hot and even Paul Russo has spoken on it in several interviews.
I believe the KCB Board will try to balance growth and dividends moving forward. What is he doing about it? There are good reasons why they are not paying. 1) Some subsidiaries are not remitting their profits but using them for growth. 2) Regional expansion. This leaves less money for distribution as dividends. What happens moving forward? 1) At some point subsidiaries will start remitting more and more of their profits depending on growth requirements which is not linear. Growth requirements are higher at the beginning. 2) Regional expansion is not is not an annual thing. You don't go to new country/market every year. And the two above are not even bad things. If they can continuously and profitably invest in growth even better!! Just like having endless bullets might tempt a soldier to shoot wildly instead of aiming carefully, excess capital can lead to careless or undisciplined investments. KCB has the potential to suffer from this We should point this out if and when it happens. Naturally, the management, the board and the investors analyse the performance of each individual investment regardless of the performance of the group. That is why NBK had to be let go for example. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,548
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VituVingiSana wrote:MaichBlack wrote:Oooops!!! I jumped the gun!! Kumbe nilipata za Coop nikadhani ni za BAT!!! All the same, thanks in advance smokers!!! Manzee! You had me excited too. I was going to call the registrar as to why I haven't seen the moolah. 25th June onwards for BAT Sasa BAT dividends ziko ndani ndani!!! Reinvest or eat the money! Ni pesa yako!!!  Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 7/22/2009 Posts: 7,548
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Wavutaji sigara, it's me again!! Asanteni!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 12/7/2012 Posts: 11,919
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MaichBlack wrote:Wavutaji sigara, it's me again!! Asanteni!!! As always YoY  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Chief Joined: 1/3/2007 Posts: 18,190 Location: Nairobi
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wukan wrote:watesh wrote:MaichBlack wrote:Ericsson wrote:MaichBlack wrote:And the issue of dividends is very hot and even Paul Russo has spoken on it in several interviews.
I believe the KCB Board will try to balance growth and dividends moving forward. What is he doing about it? There are good reasons why they are not paying. 1) Some subsidiaries are not remitting their profits but using them for growth. 2) Regional expansion. This leaves less money for distribution as dividends. What happens moving forward? 1) At some point subsidiaries will start remitting more and more of their profits depending on growth requirements which is not linear. Growth requirements are higher at the beginning. 2) Regional expansion is not is not an annual thing. You don't go to new country/market every year. And the two above are not even bad things. If they can continuously and profitably invest in growth even better!! Just like having endless bullets might tempt a soldier to shoot wildly instead of aiming carefully, excess capital can lead to careless or undisciplined investments. KCB has the potential to suffer from this Yes that was my fear about KCB, having too many moving parts. The saving grace is that the board/CEO responds well to valid criticism. E.g. they stopped jumping into bed with GoK for quickie deals Do they have a choice when "asked" by SH? 2027 ni karibu. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,190 Location: Nairobi
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Rank: Elder Joined: 7/22/2008 Posts: 2,716
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DTK ndani, ndani, ndaaani!!
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Rank: Member Joined: 7/1/2009 Posts: 268
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A welcome drop in their prices (WTK&KTC) underway :)...speculators don't seem interested in the bonus issue
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Rank: Member Joined: 1/13/2014 Posts: 393 Location: Denmark
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Equity, anyone? Seeing is believing
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Rank: Member Joined: 7/24/2010 Posts: 238 Location: nairobi
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jawgey wrote:Equity, anyone? Last week after agm
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Rank: Elder Joined: 7/22/2009 Posts: 7,548
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innovator wrote:jawgey wrote:Equity, anyone? Last week after agm Imeigia kweli? Sijaona anything!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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