Telkom investors make easy money
Mpho Khumalo has had little aggravation and lots of joy from Telkom.
She doesn't bother subscribing for a landline, but she did subscribe for Telkom shares under its Khulisa scheme five years ago.
Telkom's shares are about eight times more than the R22,40 initial public offering price Khumalo bought them for through the Khulisa deal, which gave individual black investors a 20percent discount on the R28 floatation price.
Khumalo's return on investment is higher than that. Firstly, she has also benefited from Telkom's generous dividend payments over the past four years. Secondly, she is among the Khulisa shareholders rewarded with about 20percent more shares for holding their investment for two years.
Her only complaint about Telkom is that she receives investor information she does not understand.
"Telkom interacts with its shareholders. But the information they send to us is in excess and the language they use is to difficult for us to understand so I don't read most of their documents," she said.
Assuming she now owns 52 Telkom shares, Khumalo's dividend payments to date would be R836, meaning she has nearly recouped her initial investment of R1 000.
The value of her Telkom holdings has grown to about R9360 at yesterday's Telkom share price of R180.
Telkom shares were at a high of R195 a week ago on MTN buyout rumours.