Top Five Highest Dividend-Paying Stocks on NGX

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.

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