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Top Five Highest Dividend-Paying Stocks on NGX

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five highest dividend-paying stocks

By Dipo Olowookere

Investing in stocks on the Nigerian Exchange (NGX) Limited in 2021 has made some investors richer in the midst of the harsh economic environment in the country.

Data from the exchange has shown that in this year alone, investors have earned over N700 billion from dividend payout by companies trading their shares on the Lagos-based bourse.

Business Post gathered that five of the 58 firms, which have declared various cash rewards to shareholders in the past nine months, are the highest dividend-paying stocks, accounting for N561.5 billion.

These organisations are Dangote Cement (N272.7 billion), MTN Nigeria (N92.6 billion), GTCO (N79.5 billion), BUA Cement (N70.0 billion) and Stanbic IBTC (N46.7 billion).

The 58 companies are spread across 10 sectors of the exchange, with financial services contributing 21, consumer goods accounting for seven, industrial goods having six, oil & gas with five, healthcare with four, services also with four, ICT with three, natural resources, construction/real estate, agriculture and conglomerates with two each.

The financial sector has the highest number of companies paying dividends and value of dividends, with GTCO leading the pack at a payout valued at N79.5 billion.

In the consumer goods sector, Nestle leads amongst the seven companies with a payout of N28.1 billion. Fidson leads the healthcare sector with a payout of N521.6 million. Total Nigeria takes the lead in oil & gas at N2.1 billion; UACN leads the conglomerates with N3.5 billion.

In the industrial goods sector, Dangote Cement Plc is the leader with N272.7 billion. MTN Nigeria takes the stage in ICT with N92.6 billion; Caverton takes the lead in services with N335.1 million; while Okomu leads in the agriculture sector with N6.7 billion.

As part of its efforts to spur activity in the market, the NGX continues to innovate and leverage technology to improve investors’ experience. Recently, NGX announced the release of its enhanced X-Mobile – a trading app that provides market participants, especially retail investors, with convenient, faster and real-time access to information about NGX, its listed securities and Trading License Holders.

Speaking on the development, the Chief Executive Officer of NGX, Mr Temi Popoola, stated, “The delivery of X-Mobile is in line with NGX’s strategic intent to provide an exchange that is easily accessible to stakeholders leveraging digital technology.

“X-Mobile, therefore, provides a platform to engage with existing and potential investors who now have an increased appetite for data and detailed disclosure information to aid sound investment decisions.

“We are confident that the app will complement the NGX website and other NGX portals currently being used to provide information to market stakeholders.”

On his part, the Divisional Head, Trading Business, NGX, Mr Jude Chiemeka, stated that, “X-Mobile affirms our commitment to make financial services more inclusive and provide a superior customer experience in the access and use of capital.

“The app has, therefore, been enhanced to ensure that capital market players and potential investors have the requisite resources to make the most out of their engagement with the market. We believe that X-Mobile is on course to become the primary interface for local and international investors to stay abreast of market trends and domestic economic performance.”

As a multi-asset securities exchange offering equities, fixed income and exchange traded funds, NGX continues to make concerted efforts to attract investors to the market through its innovative products and services, engagement sessions, and investment education initiatives.

It would be recalled that it recently held a retail investors webinar with the theme Green and Sukuk Bonds: More Than Just Investing, which provided investors with an in-depth view of the sustainable finance space and how to leverage same for returns.

With these positive actions, investors can look forward to a thriving capital market with diverse solutions to meet their investment needs.

highest dividend-paying stocks

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Economy

Secure Electronic Technology Seeks Approval to Merge Every Four Shares Into One

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Secure Electronic Technology

By Aduragbemi Omiyale

Secure Electronic Technology (SET) Plc is planning to reconstruct its shares at the Nigerian Exchange (NGX) Limited by merging four stocks into one.

However, this exercise is subject to the approval of shareholders of the company and the board is proposing an Extraordinary General Meeting (EGM) to be held on or before April 17, 2025.

Business Post reports that the decision to reconstruct the shares of the organisation was reached at the board meeting of the firm on Friday, MArch 7, 2025.

In a notice to the stock exchange, SET Plc said it was agreed that the proposed share reconstruction and recapitalisation of the company shall be by way of one or a combination of the following; an offer for subscription, rights offering or private placement, upon terms agreed by both parties under the definitive agreement.

It further said, “The issued and share capital of the company be reduced from N2,815,770,000, represented by 1,407,885,000 ordinary shares of 50 Kobo each, subject to the approval of the Federal High Court, Securities and Exchange Commission (SEC), and relevant regulatory authorities.”

“This restructuring share result in the cancellation of 4,223,655,000 units of shares and the portion of the share capital cancelled, being valued at N2,111,827,500 be transferred to a special reconstruction reserve,” it noted.

The disclosure also said, “There shall be a proportional upward adjustment in the share price of SET on the NGX to be reflected after the conversion, so that the value of one converted share shall be equal to the market price of four pre-reconstruction shares, and at the end of the reconstruction, SET market capitalisation and each shareholder’s percentage holding shall remain unchanged.”

The company emphasised that it would “consolidate its issued shares at a basis of 1 for 4 ratio, meaning every four shares of SET Plc currently held by a shareholder shall be converted to one share and shareholdings that result in fractional shares post-reconstruction shall be rounded up to the nearest whole number.”

It was disclosed that this exercise was suggested by Gamma Civic Limited, a part of Gamma Group, a company listed on the Mauritius Stock Exchange and represented by Cruzan Investment Limited, a company incorporated in Nigerian under the Companies and Allied Matters Act 2020.

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Economy

FrieslandCampina Wamco Weakens NASD OTC Exchange by 0.06%

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FrieslandCampina WAMCO

By Adedapo Adesanya

FrieslandCampina Wamco Nigeria Plc brought down the NASD Over-the-Counter (OTC) Securities Exchange by 0.06 per cent on Wednesday, March 12.

Business Post reports that the share price of FrieslandCampina Wamco Nigeria Plc slumped by N1.26 during the session to N37.45 per unit from the preceding day’s N38.71 per unit.

However, Geo-Fluids Plc gained 27 Kobo to trade at N2.95 per share versus Tuesday’s closing price of N2.68 per unit, and First Trust Microfinance Bank Plc appreciated by 3 Kobo to close at 56 Kobo per share, in contrast to the previous day’s rate of 53 Kobo per share.

When the platform ended trading activities yesterday, its value went down by N1.17 billion to settle at N1.955 trillion compared with the preceding day’s N1.956 trillion and the NASD Unlisted Security Index (NSI) decreased by 2.03 points to close at 3,385.50 points, in contrast to the previous trading day’s 3,387.53 points.

The volume of securities traded at the bourse dropped by 36.3 per cent to 298,845 units from the 469,185 units published on Tuesday, the value of securities decreased by 4.8 per cent to N10.4 million from the N10.9 million quoted at the preceding session, and the number number of deals moderated by 34.2 per cent to 25 deals from 38 deals.

At the close of business, Impresit Bakolori Plc was the most active stock by value (year-to-date) with 533.9 million units worth N520.9 million, followed by FrieslandCampina Wamco Nigeria Plc with 12.5 million units valued at N484.0 million, and Afriland Properties Plc with 17.2 million units sold for N352.8 million.

Also, Impresit Bakolori Plc was the most active stock by volume (year-to-date) with 533.9 million units worth N520.9 million, trailed by Industrial and General Insurance (IGI) Plc with 69.9 million units sold for N23.7 million, and Afriland Properties Plc with 17.2 million units valued at N352.8 million.

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Economy

Reps Approve Conditions to Revoke Licences of Insurance Companies

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Coronation Insurance

By Aduragbemi Omiyale

The House of Representatives has passed Nigeria Insurance Industry Reform Act, 2024, repealing Act, Cap 117, Laws of the Federation of Nigeria, 2004; the Marine Insurance Act, Cap M3, Laws of the Federation of Nigeria, 2004; The Motor Vehicle (Third Party) Insurance Act, Cap M22, Laws of the Federation of Nigeria, 2004; the National Insurance Corporation of Nigeria Act, Laws of the Federation of Nigeria, 2004 and the Nigerian Insurance Reinsurance Corporation Act, Cap N131, Laws of the Federation of Nigeria, 2004.

At the plenary on Wednesday, the green chamber of the National Assembly approved some conditions the operating licence of an insurance company can be revoked by the National Insurance Commission (NAICOM).

The new piece of legislature, which provides for a comprehensive legal and regulatory framework for insurance business in Nigeria, was enacted yesterday after the consideration of the Senate bill.

During the presentation by House Leader, Mr Julius Ihonvbere, yesterday, for a clause-by-clause consideration, it was agreed that NAICOM can withdraw the licence of an insurer or reinsurer if it is not conducting insurance business in accordance with sound insurance principles.

In addition, this action can be carried out if the licence holder has “failed to satisfy the capital or solvency requirement as prescribed by the commission and has ceased to carry on the business of insurance and the primary purpose for which it was registered for at least one year in Nigeria.”

The lower chamber of the parliament also concurred with the Senate that for obtaining an operating licence, “An application for licensing as an insurer shall be made to the commission in the prescribed form and accompanied by such other documents or information as the commission may from time to time require.

“The commission shall publish and make available to the general public a service charter which shall provide for products and services of the commission and the complete list of requirements to obtain the products and services.”

However, no person or organisation is allowed to “commence or carry out insurance, reinsurance or related business in Nigeria unless licensed by the commission as an insurer or a reinsurer under this bill.”

NAICOM was given the power to “regulate the insurance industry [in Nigeria] in order to develop the insurance sector and to protect the interest of policyholders, prospective policyholders and other stakeholders under insurance policies in ways that are consistent with the continued development of a viable, competitive  and innovative insurance industry.”

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