Economy
Building Wealth in Stock Market by Capital Appreciation and Dividend Payment
By Emmanuel C Agubuo
The stock market is a device for transferring wealth from the impatient (pessimistic and fearful investor) to the patient (intelligent and daring investor), Warren Buffett.
Success in stock market investment is dependent on the understanding of its intricacies and managing them to your advantage, Emmanuel C Agubuo.
Purpose of Stock Market
The need for companies to raise money and investors to profit from it is the essence of the stock market and that is what keeps it going.
There are three major ways to profit from the capital market.
1 By capital appreciation.
2 Dividend yields.
3 Bonus issue.
The first two are regular, but the third isn’t and it occurs when the company decides to do it.
Now, if you’re a capitalist-minded investor, you can decide to take profits as many times as possible and as you choose, especially if the stock appreciates more than you bought it. What this means in essence is that the capitalist investor decides what he wants and earns.
But a core dividend income investor has no such option(s). His only option is when the company declares dividends or bonus, either once or twice in a year and in rare cases, more.
So, his earnings or profits depend entirely on what the company chooses to give him at a particular time and not on what he decides to earn.
In order to make sure these set of passive investors keep their money with them, companies declare dividends and sometimes, bonus issues so as to make shareholders happy.
But one key question to ask is ‘is dividend income the real deal in stock market investments?’ Well, the answer varies from one investor to the other because each of their investment objective isn’t the same.
However, it is advisable that you do all you can to maximize more profits from the capital market. I believe that’s what brought you into it in the first place. Or is there anything else? You just came to watch others make the big money?
Or are you just satisfied with the peanuts from dividends? Ok, that’s your choice. Everyone is entitled to his or her choice. There’s no problem about that.
Now hear this, dividend payments in stock market investment is a bait. Don’t be caught and don’t be distracted by it. Because if you focus on it as your core means of building wealth through the capital market, it will deter you from maximizing opportunities of share appreciation, which can fetch you over 100 percent yield.
See, dividend payment is a device conceived by stock market inventors (companies) to access and consolidate huge capital almost free of charge or with lesser interest rates or payment, unlike if they had gone to the bank to borrow such huge amount of money.
The companies pay the dividends simply for consolation as to enable them keep the huge funds perpetually. This is one of the reasons you shouldn’t make dividend income your CORE mission in stock market investment. Simply take it whenever it comes, but don’t make it your CORE; that’s what I do.
However, it depends on your age, shrewdness and level of risk taking. But you have to be very smart.
Nevertheless, investing for dividend income yields is a strategy of its own; based on one’s major objective in the stock market. Investing for capital appreciation or gain is a strategy of its own too and everything boils down to individual perception, understanding, shrewdness and preference.
Though, the two can be combined. But for me, the fastest way to build wealth through the stock market is by capital appreciation in the medium to long term horizon. This doesn’t mean you should sell all your holdings at once. You can sell some or in tranches, but leave your core holdings and watch until the price rises to its top most peaks if needs be.
In other words, building wealth through capital appreciation in the stock market is not a sprint. It is a marathon. It is like a relay race. You need to be savvy, patient and persistent.
Theretofore, to profit more from the stock market investment, do all you can to learn the art of investing in it than the act. The profit is made in the arts and not the act.
A word is enough for the wise. See you at the top. Cheers.
Emmanuel C Agubuo is an entrepreneur, an investor in stocks, real estate and a stock market information strategist. He also helps to strategize on better ways to invest in the stock market profitably.
By Adedapo Adesanya
Nigeria’s maiden shipment under the African Continental Free Trade Area (AfCFTA) has successfully arrived at the Mombasa Port in Kenya.
According to the Nigeria AfCFTA Coordination Office in a statement, the development marks a historic moment for Africa’s trade landscape.
The Senior Trade Expert at the Nigeria AfCFTA Coordination Office, Mr Olusegun Olutayo, said in line with its mandate under the leadership of the National Coordinator, Mr Olusegun Awolowo, the office had coordinated the landmark event.
He said the achievement marked a significant milestone for Nigeria in realising the vision of increased intra-African trade and economic integration championed by the agreement in line with the decision of the AU Assembly at the 31st Ordinary Session of the Assembly.
“In times of escalating geopolitical tension and looming geo-economic fragmentation, AfCFTA presents a perfect opportunity for Africa to leverage trade as a strategic instrument for enhanced market access among state parties.
“This is a historic moment, a realisation of the vision of our continent’s founding fathers and mothers.”
He also said the first consignment which was a synthetic filaments product of Nigeria’s Lucky Fibres Limited (Lush), a subsidiary of the Tolaram Group, was exported under AfCFTA preferential terms.
Mr Olutayo lauded the bold economic reforms of President Bola Tinubu, emphasising their catalytic role in enabling the country’s active participation in AfCFTA, fostering continental economic integration and industrialisation goals.
He also commended the seamless cooperation and commitment from Kenyan authorities, which exemplifies the true spirit of AfCFTA.
He acknowledged the pivotal leadership role of the AfCFTA Secretariat in fostering the success and emphasised the collaborative efforts of the Kenya AfCFTA Implementation Committee and the Kenya Revenue Authority (Customs).
According to him, the shipment, exported under AfCFTA preferential trade terms, underscores partnership, shared vision, the agreement’s potential to transform Africa’s economic landscape and pave the way for a new era of trade-driven prosperity.
The AfCFTA seeks to create a single market across Africa by reducing barriers to trade, investment, and labour.
The agreement’s goal is to increase socioeconomic development, reduce poverty, and make Africa more competitive globally.
On March 21, 2018, the AfCFTA agreement was adopted and opened for signature in Kigali, Rwanda. The agreement entered into force on May 30, 2019 and officially commenced on January 2021
Former President Muhammadu Buhari established the National Action Committee on AfCFTA (NAC) in December 2019.
By Adedapo Adesanya
The Nigerian Securities and Exchange Commission (SEC) has fixed January 31 as deadline for all Capital Market Operators (CMOs) to renew their operating licence.
In a circular to the operators on Sunday, the apex regulatory agency in the country’s capital market said the annual registration renewal would last between January 1 and 31, 2025.
SEC said the annual registration renewal enforcement for CMOs was aimed at ensuring that only “fit and proper” persons operate in the capital market, warning that CMOs without valid registration will be penalised and may be excluded from capital market activities.
”This is to inform all CMOs and the general public that the annual renewal of registration of CMOs for the year 2025 will commence from January 01.
“All CMOs applying for renewal are required to include their 2025 annual subscription receipt from their respective trade groups as part of their application.
“In line with the commission’s Rules & Regulations, all CMOs are to complete the process of renewal of registration for 2025 on or before January 31 via registration renewal portal at www.eportal.sec.gov.ng,” it said.
The commission added that CMOs desiring to make enquiries or get support to complete the process should contact [email protected].
The regulator said it had in 2021 re-introduced periodic registration renewal by CMOs to create a reliable active operators’ data bank in the country’s capital market.
It said the renewal arrangement aimed at updating operators information on capital market for official use by local and foreign investors, other regulatory agencies and the public.
The agency added that the renewals would drastically reduce incidences of unethical practices by CMOs which may affect investors’ confidence and impact the capital market negatively, noting that the exercise will strengthen supervision and monitoring of CMOs by the commission.
By Adedapo Adesanya
The third trading week of 2025 ended on a positive note at the NASD Over-the-Counter (OTC) Securities Exchange, with seven equities on the platform inspiring a 1.24 per cent growth.
Consequently, the market capitalisation of the bourse increased by N21.56 billion during the five-day trading week to N1.075 trillion from the N1.053 trillion quoted in the preceding week (Week 2) as the NASD Unlisted Security Index (NSI) expanded by 37.98 points to 3,111.91 points from the 3,073.93 points it ended in the preceding week.
In the period under review, the volume of transactions went down by 42.1 per cent to 9.45 million units from the 16.30 million units in the previous week, as the value of trades declined by 53.1 per cent to N48.4 million from the N104.11 million, with these transactions completed in 122 deals involving 15 different stocks.
Industrial and General Insurance (IGI) Plc gained 50 per cent in the week to close at 36 Kobo per share versus 34 Kobo per share, Mixta Real Estate Plc increased by 20 per cent to end at N2.58 per unit compared with the previous week’s N2.15 per unit, and Okitipupa Plc rose by 10 per cent to N39.59 per share from N35.99 per share.
Further, UBN Property Plc grew by 10 per cent to N2.20 per unit from N2.02 per unit, Newrest Asl Plc jumped by 9.9 per cent to N31.38 per share from N28.53 per share, FrieslandCampina Wamco Plc surged by 3.7 per cent to N39.65 per unit from N38.22 per unit, and 11 Plc advanced by 0.3 per cent to N256.00 per share from N255.31 per share.
FrieslandCampina Wamco Plc topped the activity chart last week by value with with N0.030 billion, 11 Plc recorded N0.009 billion, Central Security Clearing System (CSCS) Plc raked in N0.004 billion, IGI Plc followed with N0.002 billion, and Geo-Fluids Plc recorded N0.002 billion.
However, IGI Plc was the most traded instrument by volume with 7.5 million units, FrieslandCampina Wamco Plc transacted 0.77 million units, UBN Property Plc recorded 0.38 million, Geo-Fluids Plc traded 0.37 million units, and CSCS Plc posted 0.16 million units.
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