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Top 15 Dividend-paying Stocks in Nigeria

Top 15 Dividend-paying Stocks in Nigeria – Dividend-paying stocks can be a great source of passive income for investors in Nigeria. With high dividend yields compared to other markets, Nigerian stocks offer investors the opportunity to earn consistent cash flows from their portfolio. In this article, we will look at the top 15 dividend-paying stocks on the Nigerian Stock Exchange based on their dividend yield.Top 15 Dividend-paying Stocks in Nigeria

What to Look for in Dividend Stocks

When selecting dividend-paying stocks, investors should look for companies with a track record of consistently paying dividends over time. The dividend payout ratio is another key factor, as it shows the percentage of earnings paid out as dividends. Stocks with payout ratios below 50% have room to grow dividends over time. Strong cash flows and low debt levels also support a company’s ability to sustain dividend payments. Dividend yields above the market average indicate stocks likely to provide higher income.


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Here are the top 15 dividend-paying stocks on the NSE as of July 2023:

1. Nestle Nigeria Plc

Sector: Consumer Goods

Dividend Yield: 7.5%

Payout Ratio: 66.2%

Nestle Nigeria is a leading food and beverage manufacturer with popular brands such as Maggi, Milo, and Golden Morn. With consistent dividend payments for over a decade, Nestle has a track record as a dependable income stock.

2. Zenith Bank Plc

Sector: Financial Services

Dividend Yield: 7.4%

Payout Ratio: 16.7%

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Zenith Bank is one of the most profitable financial institutions in Nigeria. The company has grown dividends consistently for years, only keeping payouts moderate to retain earnings. Zenith has room to grow dividends further in the future.

3. Guaranty Trust Bank Plc

Sector: Financial Services
Dividend Yield: 6.7%
Payout Ratio: 26.4%

GTBank is another leading Nigerian bank that provides stable dividends. The bank has a diversified business model and prudent management that supports its low-risk dividends.Good morning My Love Message

4. Dangote Cement Plc

Sector: Industrial Goods
Dividend Yield: 6.5%
Payout Ratio: 52.7%

As the largest cement producer in Nigeria, Dangote Cement benefits from high barriers to entry. The company’s dominant position enables it to consistently generate cash flow to pay dividends.

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5. Lafarge Africa Plc

Sector: Industrial Goods
Dividend Yield: 6.3%
Payout Ratio: 43.6%

Lafarge Africa operates cement plants across Nigeria and South Africa. Its strong market share and cost efficiency contribute to solid cash generation to sustain dividend payouts.

6. Dangote Sugar Refinery Plc

Sector: Consumer Goods
Dividend Yield: 5.9%
Payout Ratio: 87.2%

Dangote Sugar Refinery is the largest sugar producer in Nigeria. With limited competition, the company can maintain high profit margins and dividends. However, the high payout ratio indicates dividends may plateau in the near term.Information guide Nigeria

7. FBN Holdings Plc

Sector: Financial Services
Dividend Yield: 5.8%
Payout Ratio: 32.5%

FBN Holdings is the parent company of First Bank of Nigeria. The diversified financial services group has an attractive dividend supported by its position as one of the largest banks in Nigeria.

8. Lafarge Wapco Plc

Sector: Industrial Goods
Dividend Yield: 5.1%
Payout Ratio: 44.3%

Lafarge Wapco is a subsidiary of Lafarge Africa operating cement plants in Western Nigeria. Its cost-efficient production and leading market share in key regions underpin its solid dividends.

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9. FCMB Group Plc

Sector: Financial Services
Dividend Yield: 5.0%
Payout Ratio: 25.0%

FCMB Group owns subsidiaries providing banking, investment banking, insurance, and stockbroking services. The diversified financial services company has consistently grown dividends in recent years.

10. Guinness Nigeria Plc

Sector: Consumer Goods
Dividend Yield: 5.0%
Payout Ratio: 92.4%

Guinness Nigeria distributes popular beer and spirits brands including Guinness Foreign Extra Stout. However, its lofty payout ratio suggests dividend growth may stall without earnings picking up.NYSC Portal

11. Stanbic IBTC Holdings

Sector: Financial Services
Dividend Yield: 4.9%
Payout Ratio: 34.7%

Stanbic IBTC provides banking and asset management services across Nigeria. The company’s strong capital levels enable it to maintain consistent dividend payments.

12. NASCON Allied Industries Plc

Sector: Consumer Goods
Dividend Yield: 4.8%
Payout Ratio: 75.9%

NASCON Allied produces salt, seasoning, and vegetable oil. The company’s dominant market share for many of its products allows it to maintain profits and dividends. However, the high payout ratio indicates dividend upside may be limited.Romantic love message

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13. Access Bank Plc

Sector: Financial Services
Dividend Yield: 4.7%
Payout Ratio: 26.7%

Access Bank is one of the top five banks in Nigeria with operations across Africa. The bank has grown dividends through acquisitions and strong risk management supporting earnings.

14. Presco Plc

Sector: Consumer Goods
Dividend Yield: 4.2%
Payout Ratio: 44.4%

Presco operates palm oil plantations and processing facilities in Nigeria. The essential products Presco manufactures lead to stable demand and cash flow to support growing dividend payments.JAMB portal

15. Seplat Petroleum Development Company Plc

Sector: Oil & Gas
Dividend Yield: 3.9%
Payout Ratio: 41.1%

Seplat is a leading indigenous oil and gas producer in Nigeria. The company’s low-cost production model enables Seplat to pay dividends consistently despite oil price volatility.

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Conclusion

Dividend investing can be an effective strategy in Nigeria. The stocks discussed above have attractive dividend yields supported by their underlying business models. By investing in these stocks, Nigerian investors can gain exposure to leading companies across multiple sectors and earn a consistent passive income stream. Conducting thorough research and reviewing financial metrics like the dividend payout ratio will be key to identifying stocks capable of sustaining dividends in the long run.

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