Of the 151 companies listed on the Nigerian Stock Exchange (NSE), 73 of them paid a total of N580.395 billion for the financial year ended December 2017 and interim dividends for half-year 2018.
The leaders in this category are Dangote Cement, Zenith Bank and 71 others, which represent 48.34 per cent of the entire listed equities.
The other frontrunners are Nestle Nigeria, Guaranty Trust (GTB), United Bank for Africa (UBA), Access Bank, Stanbic IBTC, Total Nigeria, Custodian Alliance and Nigerian Breweries, declared interim dividend for half year 2018.
A breakdown of the performing equities showed that Dangote Cement paid the highest dividend of N178.93 billion followed by Zenith Bank, N76.92 billion; Guaranty Trust Bank, N70.63 billion; UBA, N22.23 billion; Access Bank, N11.57 billion; Stanbic IBTC, N5.02 billion, and Dangote Sugar N15billion.
Not left out are FCMB Group, N1.9 billion; Fidelity Bank, N3.19 billion; FBNH, N8.9 billion; Flour Mills Nigeria, N2.62 billion; Lafarge Africa, N8.36 billion; Chemical Allied Products (CAP), N1.435 billion; Dangote Flour, N1 billion; Cement Company of Northern Nigeria (CCNN), N1.57 billion; Conoil, N1.39 billion; Okomu Oil, N2.86 billion, among others.
Some experts said that from 2011 to 2018, dividend-paying quoted companies generally maintained cash dividend payouts, irrespective of the business cycle, which cumulatively presented attractive dividend yields relative to their respective depressed share prices as at December 08, 2011 when the market index, NSE ASI, was at its lowest. For some companies such as NASCON, UBA and Zenith Bank, their dividend yields when adjusted for a 93.23 per cent cumulative annual inflation rate, remained positive.
For the reaping investors, dividend-paying stocks have come to make a lot of sense in Nigeria given the almost cultural belief that returns on investment is the essence of engaging in any business adventure.
Dividend is a token reward paid to the shareholders for their investment in a company’s equity, and it usually originates from the company’s net profits. While the major portion of the profit is kept by the company as retained earnings which represent the money to be used its ongoing and future business activities, the remainder can be allocated to the shareholders as a dividend.
The chief operating officer of InvestData Consulting Limited, Ambrose Omorodion said that dividend payment in equity investment is as old as the stock market itself which is a function of a company’s profitability at any given time.
He stated that the key to any successful portfolio is stable growth and additional income from […]