Investors Ditch Computer Warehouse Group Over Low Return On Investment

Following the announcement of a dividend recommendation of 8.0 kobo by information and communication technology (ICT) company,Computer Warehouse Group (CWG) investors yesterday may have given the firm the boot.

The IT firm’s share price plunged by 4.96 per cent at the Nigerian Stock Exchange (NSE) losing 29 kobo to close at N5.56 per share.

The overall market position had indicated a bullish market situation with average return of 0.35 per cent as the news on the dividend recommendation filtered to the investing public. The dividend recommendation of 8.0 kobo represents a dividend yield of 1.43 per cent, a yield that is significantly lower than returns by other stocks with similar price range.

According to market analysts, the negative response to CWG’s dividend recommendation was as a result of thelow return on investment, considering the listing and current market value of the stock.

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