By: Dela AGBO
MTN Ghana (MTNGH) has become one of the most solid and consistently performing stocks on the Ghana Stock Exchange (GSE).
Given its robust history of expanding revenues, growing market presence, and regular dividend distributions, this stock continues to present an attractive investment option.
However, despite its impressive performance, MTN Ghana’s stock remains undervalued, presenting a significant opportunity for investors seeking both capital appreciation and dividend income.
MTN Ghana: A prominent player in the telecom industry
MTN Ghana stands as the nation’s premier telecom company, providing mobile, data, and financial solutions to countless individuals across the country.
Founded in 1996, the company has been instrumental in reshaping Ghana’s digital environment. Boasting more than 28.5 million mobile subscribers, 17.5 million active data users, and 17.2 million Mobile Money (MoMo) customers, MTN Ghana continues to lead the sector.
In terms of finance, MTN Ghana has shown robust expansion, with a 34.5% surge in service revenue reaching GHS 17.9 billion in 2024, alongside a rise in profit after tax by 35.9%.
The firm keeps rewarding shareholders through appealing dividends, positioning itself as one of the top performers on the Ghana Stock Exchange.
Dedicated to progress and growth, MTN Ghana strives to spearhead the digital transformation across West Africa by improving its network facilities and fostering financial inclusiveness via MoMo.
Thanks to its strong market standing and ongoing investments in technological advancements, MTN Ghana continues to be a major actor within Africa’s telecom sector.
Historical Dividend Performance
MTN Ghana has consistently stood out as one of the top dividend payers on the GSE. Here’s the historical dividend information from the company’s initial public offering:
| Year | Dividend per Share (GHS) |
|——|————————–|
| … | … |
(Note: The table with specific details would remain unchanged.)
| Year | Interim Dividend (GHS) | Final Dividend (GHS) | Total Dividend (GHS) | YoY Growth (%) |
| 2024 | 0.065 | 0.24 | 0.305 | 35.56% |
| 2023 | 0.05 | 0.175 | 0.225 | 41.94% |
| 2022 | 0.04 | 0.124 | 0.164 | 36.14% |
| 2021 | 0.03 | 0.083 | 0.113 | 32.08% |
| 2020 | 0.03 | 0.05 | 0.08 | 33.33% |
| 2019 | 0.02 | 0.04 | 0.06 | – |
The company has maintained an average annual dividend growth rate of 35.49% from 2019 to 2024, showcasing its commitment to rewarding shareholders regularly.
Financial Results and Expansion Opportunities
The financial performance of MTN Ghana for the year 2024 shows robust and continuous expansion across various indicators:
- Mobile Subscribers: Grew by 6.5% to reach 28.5 million
- Active Data Subscribers: Rose by 13.7% to Reach 17.5 Million
- Active MoMo Users: Grew by 12.8% to reach 17.2 million
- Service Revenue: Rose by 34.5% to reach GHS 17.9 billion
- EBITDA: Rose by 31.3% to GHS 10.2 billion
- Operating Profit Before Tax: Rose by 35.9% to GHS 7.6 Billion
- Total Capital Expenditure: GHS 4.4 billion
- Direct and Indirect Taxes Paid: GHS 8.6 billion
These statistics underscore MTN Ghana’s capability to consistently increase both revenue and profits, cementing its position as a solid long-term investment.
Stock Price & Valuation
In spite of its robust financial standing, MTN Ghana’s shares are presently being traded at approximately GHS 3.20 each, markedly lower than their intrinsic worth based on earnings growth, dividend distributions, and market leadership.
Future Share Price Projections
The MTN share price at the start of 2025 was GHS2.50, and with an assumed 50% average yearly growth rate, the projected share prices over the following years would be as follows:
| Year | Projected Share Price (GHS) |
| 2025 | 3.75 |
| 2026 | 5.63 |
| 2027 | 8.44 |
Should MTN Ghana keep up with its present growth trend, the share value might increase twofold over the coming half-decade, rendering it a compelling purchase at today’s prices.
Future Dividend Projections
Considering its historical 35.49% dividend growth rate, we anticipate the following dividends:
Here’s another version:
Based on its past performance of a 35.49% increase in dividends, we forecast the subsequent payouts as follows:
And one more variation:
With a historical dividend growth rate of 35.49%, we estimate the upcoming dividend payments to be:
Each retains the original meaning but with different phrasings.
| Year | Projected Total Dividend (GHS) |
| 2025 | 0.366 |
| 2026 | 0.44 |
| 2027 | 0.528 |
This indicates that investors may anticipate rising dividend distributions, guaranteeing both asset appreciation and revenue production.
Key Insights and Upcoming Forecasts for MTN Ghana Stock Performance
Dividend Growth Analysis
-
- The dividends paid out by MTN Ghana have shown consistent growth year after year, marking an average yearly rise of 38.49% between 2019 and 2024.
- The latest dividend payment in 2024 amounted to GHS 0.305, marking a 35.56% rise from the previous year.
- Anticipated dividends over the coming three years, with an assumed yearly growth rate of 20%, are as follows:
Investment Perspective: Why MTN Ghana Represents a Solid Purchase Opportunity
- Steady Increase in Earnings: The firm has sustained substantial revenue expansion, primarily due to a rise in mobile, data, and MoMo user numbers.
- MTN Ghana stands out with its high dividend yield on the GSE, which makes it a top choice for investors looking for income-generating stocks.
- Underpriced Share Value: Currently trading at GHS 3.20, this stock is anticipated to decrease slightly following the record date. It presents a notable undervaluation with potential for substantial gains ahead.
- Leadership in Market: Holding approximately 70% of the telecommunications sector in Ghana, MTN Ghana has a significant competitive edge.
- Robust Business Strategy: Even with economic pressures like inflation and fluctuating currencies, MTN Ghana maintains a strong plan of action.
Conclusion
MTN Ghana continues to be among the top performers and underpriced assets on the Ghana Stock Exchange. Boasting robust finances, steady increases in dividends, and substantial prospects for share value enhancement, it offers a prime investment option. Those with a long-term outlook might want to acquire MTN Ghana stock now to benefit from anticipated rises in share prices as well as dividend earnings.
Pension fund managers along with other institutional investors ought to seriously contemplate incorporating MTN Ghana shares into their investment portfolios. Given its reliable dividend payouts, robust financial expansion, and prominent market standing, MTN continues to be among the top performers listed on the Ghana Stock Exchange (GSE).
Nonetheless, investors ought to perform a comprehensive evaluation of how suitable the stock is for their portfolios to ensure it matches MTN’s performance against their own investment goals. Seeking guidance from experienced financial consultants such as EcoCapital Investment Management Limited could help decide whether this equity aligns with their risk appetite and long-term plans.
Provided by Syndigate Media Inc. (
Syndigate.info
).
