Schnoor...we take into consideration all the different factors that go into declaring a dividend, one of which is what is the capital that we need. .
JAMAICA’S largest financial groups are strengthening their capital buffers ahead of looming regulatory changes, a shift that executives say may limit the scope for higher dividend payouts even as profitability improves.
The tension surfaced on Wednesday at the annual general meeting (AGM) of Scotia Group Jamaica Limited (SGJ), where minority shareholders pressed the financial conglomerate to increase dividends after several years of rising earnings.
Two shareholders questioned why the group has maintained the same dividend level despite stronger profits, arguing that investors were not receiving an adequate share of the company’s financial gains.
“Across the board in Jamaica, I realise that the dividend yield is very low and not much priority is given to shareholders…I feel like in Jamaica shareholders are not really respected,” a SGJ shareholder said in his remarks.
He added, “Employees get an annual salary increase, directors get an annual salary increase, all the other stakeholders benefit from their investment, but we as shareholders don’t really benefit much as investors.”
Scotia Group’s board declared a $0.45 dividend — totalling $1.40 billion — to be paid on April 14 to shareholders on record as of March 23.
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