The Real investment analysis and to where to invest.

Safaricom shares are currently trading at Ksh 38.81 and they announced an interim dividend of Kshs 0.64 per share.

What does this mean to the average investor? Let's break it down. 
Going by last year's trend and assuming that they pay a final dividend of 1ksh, your total dividends will be Kshs 1,640,000 for your investment of Kshs 38.81m

How does this compare to other investments?
If you had enough money to buy 1 million shares, your initial investment would be Kshs 38.81million and your interim dividend this round will be Kshs 640k.
The dividend payment is slightly above 4% return per annum (assuming no brokerage fees for share purchase etc) which is pretty decent, given that safaricom is the bluchipest of the blue chip companies.
If you invested the money with a fund manager eg CiC whose return last year was a smidge above 9%, your interest payment at the end of the year would have been almost Kshs 3.5million.
A real estate investment of Kshs 38.81 million 'should' yield close to kshs 270k per month (our properties are over valued), hence the true rental income if you purchase in an upmarket area, the rent would be closer to Kshs 150k monthly and an annual amount of Kshs. 1.8million.
A government paper at 9% would give similar returns to the managed fund returns, roughly Kshs 3.5m per annum.

So with Covid, elections and now the Eastern Europe unrest, which one do you choose? And why?

For the real estate calculation, take the current rent and multiply it by 144. It should give a good indication of the 'true' value of a property.

I've valued many project using the discounted cashflow method and been involved in RE over a decade to swear by the X144 multiple
Quick poll from the thread above. If you had 40 million shillings, what would you invest in?

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