Dis-Chem aims to pay more generous dividends
Group wants to lift its dividend pay-out ratio from 40% of net income to up to 50% of earnings over the medium term
Dis-Chem aims to start paying out as much as half of its net income within the next few years, says chief financial officer Rui Morais. The pharmacy group said in a presentation to shareholders on Wednesday it wanted to lift its dividend pay-out ratio from 40% of net income to up to 50% of earnings over the medium term. “But that’s very dependent on how many of these acquisition opportunities we see and take,” Morais told Business Day.
“We’re highly cash generative at the moment and investing in retail space, but we’re seeing quite a few acquisition opportunities which, in the current market, make sense…. So the evolution of that dividend policy will be based on the extent of the acquisitions we make.” Dis-Chem is in the process of acquiring a wholesaler in the Western Cape called Quenets, as well as Springbok Pharmacy. The constrained environment for independent players was presenting further consolidation opportunities, Morais said. Dis-Chem on Wednesday reported a 9.4% rise...
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