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Kenya's telecom behemoth Safaricom is well-known for its M-PESA platform and mobile services. Its shares, which are listed as SCOM on the Nairobi Securities Exchange (NSE), provide investors with the chance to profit from dividends and stock price gains. However, what is the actual earnings potential of Safaricom shares? This piece dissects the data, looking at dividend payments, stock patterns, and important variables that affect returns.
Stock Performance and Potential Gains
According to PitchBook data, Safaricom's market capitalization is $6.11 billion, and its stock price is $0.15 per share as of May 23, 2025. At an exchange rate of roughly 1 USD = 129 KSh, that’s about KSh 19.35 per share. The stock has grown 12.10% over the past 52 weeks, with a low weekly volatility of 3%, signaling stability. This growth means buying shares a year ago at $0.134 (KSh 17.29) and selling now at $0.15 (KSh 19.35) would net a profit. For 1,000 shares, that’s a $16 gain (KSh 2,064)—modest, but a sign of steady appreciation.
Dividend Income
One important source of income for Safaricom stockholders is dividends. Safaricom suggested paying a final dividend of KSh 0.65 per share for the fiscal year that ended on March 31, 2024, for a total annual payout of KSh 1.20 per share. With 1,000 shares, you would receive KSh 1,200 annually, which is normally distributed following the mid-year annual general meeting. Safaricom appeals to people looking for steady income due to its history of paying dividends, which tend to be higher than KSh 1 per share.
Financial Strength Driving Earnings
The company's financials support Safaricom's capacity to compensate investors. With M-PESA accounting for 42.4% of sales, it reported an EBIT of KSh 139.9 billion ($1.07 billion) and revenue of KSh 335.3 billion ($2.5 billion) in the fiscal year 2024, an increase of 13.4%. According to Techpoint Africa and Reuters, net income was KSh 62.9917 billion. Both dividend payments and stock value are supported by this strong performance.
What Affects Your Earnings?
Your returns on Safaricom shares are determined by a number of factors:
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Market Trends: Changes in inflation, the state of the economy, and exchange rates can all affect stock values. Although Kenya's telecom industry is robust, there are always hazards.
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Growth Initiatives: With 4.4 million customers served since its 2022 start, Safaricom's Ethiopia initiative promises future income increases.
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The Role of M-PESA: The GlobalPay Virtual VISA Card is one example of an innovation that drives M-PESA's expansion and raises overall profitability.
Calculating Your Earnings
The size and approach of your investments determine your earnings. With 10,000 shares at $0.15 ($1,500 or KSh 193,500), a 12.10% price increase results in gains of $181.50 (KSh 23,413) and dividends of KSh 12,000, for an annual total of KSh 35,413 ($274). While market downturns or operational issues may reduce profitability, larger investments increase returns.
Safaricom shares combine the potential for income and growth. M-PESA is a market leader in Kenya thanks to its strong financials, domination, and development plans. Investment decisions and market risks affect earnings, but Safaricom is a strong choice if you want a combination of dividends and capital gains.
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