Investor | Ghana stocks | Building a dividend paying machine with MTN Ghana (MTNGH)
Ashanti, Ghana
Joined March 2026
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Year-to-date dividend tally from my single stock portfolio ( MTN Ghana )
$1,000 in dividends for 2026 has been achieved with the addition of Q2 interim dividend. We go again in December.
Headless Investor retweeted
Yes. At the last conference call, an investor asked about using borrowed money. The CFO said they will do that when the need arises but for now they think the status quo is more prudent
The government is currently between the devil and the deep blue sea when it comes to MTN GH. Revoking the SMP status and allowing MTN to set cheaper prices will decimate the competition. Forcing them to maintain their prices also hurts the pockets of consumers.
MTN GH is currently playing the game without borrowed money. They are just running on cash generated from the business. It would be so unfair to their competitors if they were to activate that lever. Cheap credit and retained earnings war chest would be a deadly combo.
The low interest rate environment isn't favourable to MTN GH in its current state. BoG reduced their interest on float (Mobile Money deposits) rate from 4% to 1%. Impacting finance income. They are also yet to resume taking loans to take advantage of cheaper credit.
MTN Group makes more revenue per user in Ghana than anywhere else.
Ghana also contributed more money to MTN Group's coffers in H1 2026 than Nigeria and South Africa combined.
MTN GH's ideal capital structure is 30% debt and 70% equity. But in the H1 2026 earnings call, the CFO said they had zero debt because they had to pay down debts during the high interest rate years. Now that interest rates are low, they expect to take on some debt funding.
Though customers are migrating from traditional voice to voice-over-internet services, I like that MTN GH still puts in effort to ease the decline. Keeping it in the low single digits and making sure data revenue growth more than offsets it with time.
The microfinance guys deal with a lot of unsecured loans.
A September survey found Ghanaian microfinance banks charging 31% to 40% interest on loans, while most big banks charged 10% to 15%.
statsgh.com/banking-and-fina…
Headless Investor retweeted
Hmmmm. The share dilution they did was crazy - almost 4x the share base in 2024
