Vitafoam Nigeria Plc has announced a ₦3.00 cash dividend per ordinary share alongside a 1-for-5 bonus share issue, in a move that significantly strengthens shareholder returns and underscores management’s confidence in the company’s earnings and balance-sheet position.
The proposals, contained in the company’s corporate actions notice dated December 27, 2025, are subject to shareholder approval at the Annual General Meeting scheduled for March 2026.
Key Corporate Action Highlights
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Final Dividend: ₦3.00 per 50-kobo ordinary share
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Bonus Issue: 1 new ordinary share for every 5 shares held
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Financial Year End: 30 September 2025
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Qualification Date: Friday, 6 February 2026
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Register Closure: Monday, 9 February – Friday, 13 February 2026
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Dividend Payment Date: Thursday, 5 March 2026
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AGM Date: Thursday, 5 March 2026 (10:00 a.m.), Ikeja, Lagos.
What the ₦3 Dividend Signals for Investors
The ₦3 dividend represents a meaningful cash return to shareholders and reflects Vitafoam’s ability to sustain payouts despite persistent cost pressures across Nigeria’s manufacturing sector. For income-oriented investors, the payout reinforces Vitafoam’s status as a dividend-paying industrial stock, particularly attractive in a market where real yields remain scarce.
Analysts note that consistent dividend capacity is increasingly valued by domestic pension funds and long-term retail investors seeking stability amid macroeconomic volatility.
Bonus Share Issue Supports Liquidity and Long-Term Value
The 1-for-5 bonus share issue enhances share liquidity and broadens participation without diluting ownership, effectively rewarding loyal shareholders through capitalisation of reserves. Such actions are typically interpreted by the market as a signal of underlying balance-sheet strength and confidence in future cash generation.
Governance and Payment Mechanics
Vitafoam confirmed that dividends will be paid electronically to shareholders who have completed e-dividend registration, aligning with Nigerian Exchange best practices. Shareholders with outstanding dividend warrants or unvalidated share certificates are encouraged to regularise their status through the company’s registrars
Investor Takeaway
For equity investors, Vitafoam’s combined ₦3 cash dividend and bonus share issue reflects disciplined capital allocation—returning value today while preserving flexibility for growth. The announcement is likely to support positive sentiment around the stock in the near term, particularly among yield-focused and long-only portfolios.
