With the BNA benchmark rate at 17.5% and Bilhetes do Tesouro (BTs) offering yields in the 16-18% range, BAI’s dividend yield competes directly with Angola’s deep fixed-income market for investor capital. Banco Angolano de Investimentos (ticker: BAI) trades at approximately Kz 100,500 on BODIVA, up from its June 2022 IPO price of Kz 20,640.
Dividend Policy
BAI’s dividend policy (politica de dividendos) is determined annually by the general shareholders’ meeting (Assembleia Geral de Accionistas) based on the board’s recommendation following the approval of audited annual accounts. As a BODIVA-listed company, all dividend-related decisions must be disclosed as material facts (factos relevantes) to the Comissao do Mercado de Capitais (CMC).
Angolan banking regulations require that dividend distributions comply with BNA capital adequacy requirements. BAI must maintain a minimum Capital Adequacy Ratio (Racio de Solvabilidade Regulamentar) of 10% after any distribution, which in practice constrains the maximum payout ratio.
Dividend History
| Fiscal Year | Dividend per Share (Kz) | Payout Ratio | Ex-Dividend Date | Payment Date |
|---|---|---|---|---|
| FY 2024 | Pending | Pending | TBA (H1 2026) | TBA |
| FY 2023 | ~2,500 | ~30% | H1 2024 | H1 2024 |
| FY 2022 | ~1,800 | ~25% | H1 2023 | H1 2023 |
Source: BAI annual reports and CMC filings. Figures are approximate. Investors should consult original disclosures for exact amounts and dates.
Tax Treatment
Angola levies a 10% withholding tax on dividend income under the Imposto sobre Aplicacao de Capitais (IAC). This tax applies equally to resident and non-resident shareholders and is withheld at source by the paying agent. Non-resident investors should verify whether their jurisdiction of tax residence has a double taxation agreement (Acordo para Evitar a Dupla Tributacao) with Angola, which may provide relief or credit for taxes withheld.
| Tax Component | Rate | Applicable To |
|---|---|---|
| Imposto sobre Aplicacao de Capitais (IAC) | 10% | All dividend recipients |
| Non-resident additional withholding | 0% | No additional levy beyond IAC |
| Capital gains tax on share disposal | 10% | Realized gains on BODIVA trades |
Dividend Yield Analysis
At the current share price of approximately Kz 100,500 and an estimated FY 2023 dividend of ~Kz 2,500 per share, BAI’s trailing dividend yield is approximately 2.5%. This compares with:
- BTs (Bilhetes do Tesouro): 16-18% annualized yield at recent auctions
- OTs (Obrigacoes do Tesouro): 12-15% coupon on longer-dated sovereign bonds
- Bank deposit rates: 8-12% on term deposits at major banks
The yield differential reflects the distinct risk-return profile of equities versus fixed income: BAI shareholders have captured significant capital appreciation (~387% since IPO), while BT holders receive higher current income with lower price volatility. Institutional investors often hold BAI for total return rather than income alone.
Payout Considerations for 2026
The BNA’s January 2026 rate cut to 17.5% may influence BAI’s payout ratio for FY 2025 results. Lower rates compress margins on the bank’s sovereign securities portfolio, potentially reducing distributable profits. Conversely, improved economic activity from monetary easing could support loan growth and fee income.
For balance sheet and earnings details, see BAI Financials. For ownership breakdown, see BAI Shareholders.