The National Social Security Fund (NSSF) has disclosed its top dividend earners for the financial year ending June 2022/23. According to the Fund’s annual report, MTN and Safaricom, among others, stand out as the major contributors to NSSF’s dividend income.
The report highlights the performance of the fund and indicates that MTN, Safaricom, Equity Group Holding, CRCD Tanzania, and National Microfinance Bank were the leading sources of dividend income for NSSF in the 2022/23 financial year.
During this period, NSSF earned UGX 31 billion from its shareholding in MTN, marking a significant increase from the UGX 9.3 billion earned in the previous financial year ending June 2022. NSSF is the second-largest shareholder in MTN, holding an 8.84 percent stake.
NSSF benefited from MTN’s substantial turnover, with the company’s profits for the year ending 2022 reaching UGX 409 billion. Additionally, NSSF’s dividend income from Equity Group Holdings increased to UGX 19 billion from UGX 14.1 billion. The fund also earned UGX 16.1 billion, UGX 14 billion, and UGX 10.6 billion from Safaricom, CRDB Tanzania, and National Microfinance Bank, respectively.
NSSF allocates approximately 12.51 percent of its investments in equities, which include stocks and securities. Other investments constitute 78.4 percent, while fixed assets and real estate account for 9.01 percent of the fund’s holdings.
For the financial year ending June, NSSF reported a 15.11 percent increase in revenue, primarily driven by fixed income investments, rising from UGX 1.9 trillion to UGX 2.2 trillion. Dividend income also saw substantial growth, increasing by 45.42 percent to UGX 145.12 billion from UGX 99.7 billion in the previous year, making it the fund’s fastest-growing investment category.
While income from real estate experienced a slight drop to UGX 11.94 billion from UGX 11.97 billion, revenue from fixed income rose to UGX 2.04 trillion from UGX 1.8 trillion. Fixed income remained NSSF’s largest source of revenue.
Among the top five dividend earners, MTN is the only Ugandan company, with the rest being Equity Group Holdings, Safaricom, CRDB Tanzania, and National Microfinance Bank.
Andrew Mwima, a Financial Markets Analyst, remarked that the Uganda Securities Exchange is less active compared to exchanges like the Nairobi Securities Exchange due to the limited number of listed companies.