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

Thank you.

I think DTB has a better chance of growth in share price than KCB. I do not trust KCB's financials and I hope Russo does a clean-up of the loan book.

I see a path for I&M to grow and I cannot see the same runway for Coop. Its mainstay are SACCOs but what happens when members (of SACCOs) need their money back? I&M never skimped on a dividend even during COVID.

I have Stanbic and Equity but the latter will grow faster thanks to DRC, TZ, UG, etc over the next 5 years. I am looking ahead.

I have ALL of the below but I am working on picking just 3 and trim the rest. SCBK has a great DY but ABSA I believe will grow its EPS and DPS faster.

Stanbic is now a pure dividend play since SAHL has stopped buying. I might sell NCBA and buy something else eg ABSA or Equity.

I love BAT. I do not encourage smoking but if you do, please use BAT products.

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

I do not follow Coop but that's good to know some banks have been consistent dividend payers!
Equity dunga'd shareholders for 2 straight years.

On Coop vs I&M... I am #TeamI&M and I see their regional expansion will pay off better than Coop in the long run.

When was I&M #4 in PAT?

DTB needs a push. I do not expect a huge dividend but better than 3/- for FY2022. A minimum of 4/- but I think 5/-

I assume KCB, Equity and Coop were definitely ahead.

What about SCBK, NCBA and ABSA in FY19?

There seems to be something else going on.

Perhaps the likes of ABSA & SCBK had taken large provisions that were reversed in later years. They have always been more conservative about provisioning.

DTB is an example of a bank that didn't NPL & provision adequately a few years ago and then had to in large chunks. Look at 4Q2020 and 4Q2021.

Anyway, I am comfier with I&M vs Coop for longer term EPS and Dividend growth.