JOHANNESBURG – Vodacom yesterday increased its interim dividend payout for the six months to September to R7.52 billion, beating expectations and signalling it was poised for growth.
The unit of the multinational operator, Vodafone, raised its interim dividend to R3.95 cents a share from R3.90 a share in the previous period despite issuing of 114.5 million new shares for its new black empowerment structure.
The marginal dividend increase comes as Vodacom rival MTN cut its dividend in August in a bid to address its debt burden.
Cape Town-based portfolio manager Peter Takaendesa at Mergence said South African operations were weaker, but dividend growth was a positive sign.
“The market expected the dividend to be lower. Although it has grown modestly, it is a sign the company is positive about its prospects,” he said.