A DIVIDEND yield of 12.5% and the presumption that the board of Lewis Stores would find other ways to prop up its revenue could explain why the company’s share price showed little reaction to the hard-hitting ruling issued by the National Consumer Tribunal on Wednesday.On Thursday, Lewis’s share price closed just 2.33% weaker at R41.52 after the company issued a Sens statement at lunchtime informing shareholders of the tribunal’s ruling. But, with the tribunal considering a second referral against Lewis, shareholder sentiment may buckle.In its first substantial ruling against a listed company, the tribunal found this week that the National Credit Regulator’s investigation and complaint against Lewis was valid.The complaint, which related to the sales of insurance against loss of employment and disability, had been referred to the tribunal in July 2015.Lewis challenged the validity of the referral throughout the process, causing the hearing to be delayed until July 28.The tribunal or...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.