Employment Minister, Moses Asaga says it is about time extractive-companies listed on the Ghana Stock Exchange improved the dividends they pay to their individual shareholders.
This is in response to concerns expressed by the President of the Chamber of Mines, Daniel Owiredu that the low interest in mining stocks could affect efforts to encourage more companies to list on the exchange.
But Mr Asaga tells JOY BUSINESS, the phenomenon cuts across the entire extractive industry. He attributes it to the low-dividends they pay out to their shareholders.
?The reason their dividends are low is that, they are always ploughing back the profits they have made for more expansion because their operations are capital intensive. So it means the small-holder in that company would not get any good returns on his investment and that is why there is almost always a disinterest in stocks of resource-based companies? he noted.
He says a minimum increase of 20 percent in dividend payment for especially individual shareholders is the way forward.
?I believe that we should not just be chasing expansion. The smaller shareholders should also be encouraged by giving them better dividends at the end of the year.I thinks that a yield ratio of about 15 to 20 percent should be reasonable?. he ended.