Action taken by companies to deal with the fallout from Covid-19 is paying dividends - literally.

Similar to the period following the global financial crisis of 2008 and 2009, companies have cut costs and streamlined their businesses, strengthening their balance sheets and placing them in a strong position to return cash to shareholders.

Barloworld has resumed payouts and is also paying a special dividend following a return to profitability for the first half of its financial year. Telkom says it will also consider resuming dividends this year, just a year after suspending its dividend policy.

Meanwhile, Netcare will report a return to profitability when it releases first-half results later this week. Netcare hasn't declared an interim dividend despite a much better performance for the first six months of its financial year when compared to the second half of last year.

Also today, Momentum Metropolitan has reported strong growth in new business and improved operating profit and headline earnings. And Today's Trustee editorial director Allan Greenblo considers the non-payment of funds into the ANC's provident fund and how it highlights one of the biggest problems afflicting the retirement-fund industry.

Finally, if you missed it yesterday, The Finance Ghost and Mohammed Nalla (Moe-Knows.com) tackle inflation in Episode 26 of Magic Markets, explaining how it affects market valuations and some of the techniques available to help mitigate the impact.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect