Hi @VVS

Just a suggestion

Why not take the following action solely for high dividend income ?

Substitute DTB with KCB
Substitute I&M With Coop
Add Stanbic by reducing some position in Equity

REMOVE ENTIRELY
Longhorn
Kenya Re
Centum (poor performance ) and use the
proceeds to accumulate .

Some NCBA
Add more to Stanchart
Buy few EABL (Diversification)
Buy Safaricom ( At it's low now)


Above will ensure you have a better dividend
income spread and higher returns

Ideally with the right mix 10m ksh invested should yield btw 800k to 1 million ksh not miserly 450k I read about.

Ensure that the following counters have heavy weight in your portfolio for high dividend in order of importance dividend wise.

1. BAT
2 SCBK
3. NCBA
4 ABSA
5 Stanbic

Above should constitute at least 70% of your portfolio for high dividend income as their pay out ratio is the highest in NSE.


Note:- From my 18 years experience in Nairobi bourse (since 2004), capital gains is
DEAD or a WILD CHASE . Dividend income is it

Note:- I don't invest in BAT for ethical reasons but the other BIG 4 constitutes 80% of my portfolio (SCBK,NCBA,ABSA,STANBIC)
.
Be aware FY 22 COOP will return a dividend
of 1,30 to 1.50 due to improved performance (Fy 21 ksh1.00)

Asante Sana

Very solid advice. On the banks I think it is a great idea to have exposure across the different types. Local, International, catering to different segments of population etc. For that reason I would also at least have one of either IM or DTB rather than dropping both of them.

Kenya Re has issues on receivables and bad debts which erodes it's cashflows

FY 2022 Dividend Estimates after reading comments

Some eg Centum (YE Mar 22) will likely be paid in 2022.
Some eg C&G (YE Sep 22) may pay in late 2022 or early 2023
Others eg SCBK and BAT (YE Dec 22) will pay an interim in 2022 and the final in 2023.

BAT 55 (5+50)
SCBK 20 (5+15)
C&G 2 post-bonus (@McGill says 2.25 but 2H has been TanoTena'd)
CARB 1.50 (incl Special Dividend)
Longhorn 0.25
Centum 1.20
ABSA 1.25 (0.25+1)
Equity 4 (from 5 after reading @ericsson's comments)
KenyaRe 0.20 (@2cents watch this space)
I&M 1.75
DTB 5

I will update the above as results are released.

Centum by 31 July
1H for banks + BAT by 31 Aug
Carbacid by 31 Oct
C&G by 31 Dec
KenyaRe 1H by 30 Sep
Longhorn by 30 Sep

Please add to this list dates of results release and estimates of dividends for other firms.
Also if you think my estimates are off, please indicate why and what.

C&G - I would prefer the higher dividend but it is unlikely 2H will be as good as 1H given the $ shortage, higher fuel prices, higher interest rates and the boda crackdowns. The $ shortage worries me the most.

Longhorn's policy seems to be to pay a dividend out of profits. The 1H was profitable and 2H seems back on track as most schools reopened regionally. I also think they had inventory stuck due to COVID which could have been shipped in FY22.

Carbacid had a great 1H and has lots of cash but the BOC deal seems stuck until the CMA gets its act together [insert laugh track] so it may distribute the cash.