The market’s dividend payout ratio has increased steadily, rising from 52.6% in 2021 to 56.9% in 2023 — an increase of over 4 percentage points.
According to the report on dividend payouts by listed companies for the financial years 2021-2023, published by the Tunis Stock Exchange, listed companies have adopted a balanced policy of remunerating shareholders and consolidating their financial base in order to continue to grow and protect themselves against potential risks, with an average overall payout ratio of 54.5% over 2021/2023.
In 2023, the number of companies distributing dividends fell slightly from 49 to 48 compared with 2022.
The number of listed companies declined from 82 in 2022 to 78 in 2023, a decrease of around 5%, following the delisting of four companies.
Among the profitable companies that opted to remain listed were STB, Carthage Cement and STIP, which had average profits of 86 million dinars (MD), 41 MD and 12 MD respectively over the period 2021/2023.
“These three companies have refrained from paying dividends due to previous losses, which should be offset by allocating profits,” says the report.
The overall amount of dividends has shown steady and significant growth, rising from 1,136 MD in 2021 to 1,393 MD in 2023, an increase of 22.6% (257 MD).
This reflects the resilience of listed companies and their ability to generate profits, which increased by 13.3% (+288 MD).
Steady growth in dividend payouts demonstrates listed companies’ commitment to maintaining or improving shareholder returns, a policy that will undoubtedly make these issuers more appealing to stock market investors.
“Robust pace” of dividends
The profits of listed companies increased by an average of 7.6% during this period. However, this improvement was marked by a deceleration in growth, falling to 4.6% in 2023 compared to 10.7% in 2022.
Dividends, on the other hand, maintained a robust pace of 10.8% in 2022 and 10.6% in 2023, representing an average annual growth rate (AAGR) of 10.7% over the period.
The fact that dividends are growing faster than profits has led to an increase in the payout ratio.
Reflecting the composition of the stock market, banks were strongly represented among the top five dividend payers from 2021 to 2023. Their average contribution to the top five amounts to 70% (and 38% of the overall dividend).
In other sectors, only SFBT in the agri-food sector has managed to maintain a regular presence. It was also the second largest contributor, with an average share of 14.8% over the period.
PGH, on the other hand, only appeared once, in 2021.
For 2022 and 2023, four of the five lowest distribution rates belong to banks and financial institutions (B&EF). These are three banks (UIB, BNA and BH BANK) and one leasing company (Best Lease).
At sector level, all ten companies on the list for the period 2022/23 are financial companies (i.e. 100%), while this rises to 93% (14 out of 15 companies) for the period 2021/23.
Over the last three years, the average time between holding the Annual General Meeting (AGM) and distribution has been around 35 days.
Compared with 2021, this figure increased by eight days in both 2022 and 2023, stabilizing at 38 days. The financial sector offers the shortest lead times, with an average of 26 days over the last three years.
Eighty-three per cent of dividends are paid between May and July
A high level of activity is evident in the monthly breakdown of companies paying dividends between May and July. On average, this period accounts for 83% of dividend payments.
The high number of dividend payouts in May and July can be explained by the concentration of annual general meetings (AGMs) in April and June. For example, the Tunis Stock Exchange report noted that, in 2024, 96% of dividend-paying companies’ AGMs (46/48) were held between April and June.
