{"id":4190,"date":"2021-11-12T18:07:38","date_gmt":"2021-11-12T18:07:38","guid":{"rendered":"https:\/\/kobotalk.com\/?p=4190"},"modified":"2024-12-17T16:13:36","modified_gmt":"2024-12-17T16:13:36","slug":"top-10-dividend-paying-stocks-on-nigeria-exchange-ltd-ngx","status":"publish","type":"post","link":"https:\/\/kobotalk.com\/BLOG\/top-10-dividend-paying-stocks-on-nigeria-exchange-ltd-ngx\/","title":{"rendered":"Top 10 Dividend Paying Stocks On Nigeria Exchange Ltd (NGX)"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><div class=\"pvc_clear\"><\/div><p id=\"pvc_stats_4190\" class=\"pvc_stats all  \" data-element-id=\"4190\" style=\"\"><i class=\"pvc-stats-icon medium\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" version=\"1.0\" viewBox=\"0 0 502 315\" preserveAspectRatio=\"xMidYMid meet\"><g transform=\"translate(0,332) scale(0.1,-0.1)\" fill=\"\" stroke=\"none\"><path d=\"M2394 3279 l-29 -30 -3 -207 c-2 -182 0 -211 15 -242 39 -76 157 -76 196 0 15 31 17 60 15 243 l-3 209 -33 29 c-26 23 -41 29 -80 29 -41 0 -53 -5 -78 -31z\"\/><path d=\"M3085 3251 c-45 -19 -58 -50 -96 -229 -47 -217 -49 -260 -13 -295 52 -53 146 -42 177 20 16 31 87 366 87 410 0 70 -86 122 -155 94z\"\/><path d=\"M1751 3234 c-13 -9 -29 -31 -37 -50 -12 -29 -10 -49 21 -204 19 -94 39 -189 45 -210 14 -50 54 -80 110 -80 34 0 48 6 76 34 21 21 34 44 34 59 0 14 -18 113 -40 219 -37 178 -43 195 -70 221 -36 32 -101 37 -139 11z\"\/><path d=\"M1163 3073 c-36 -7 -73 -59 -73 -102 0 -56 133 -378 171 -413 34 -32 83 -37 129 -13 70 36 67 87 -16 290 -86 209 -89 214 -129 231 -35 14 -42 15 -82 7z\"\/><path d=\"M3689 3066 c-15 -9 -33 -30 -42 -48 -48 -103 -147 -355 -147 -375 0 -98 131 -148 192 -74 13 15 57 108 97 206 80 196 84 226 37 273 -30 30 -99 39 -137 18z\"\/><path d=\"M583 2784 c-38 -19 -67 -74 -58 -113 9 -42 211 -354 242 -373 16 -10 45 -18 66 -18 51 0 107 52 107 100 0 39 -1 41 -124 234 -80 126 -108 162 -133 173 -41 17 -61 16 -100 -3z\"\/><path d=\"M4250 2784 c-14 -9 -74 -91 -133 -183 -95 -150 -107 -173 -107 -213 0 -55 33 -94 87 -104 67 -13 90 8 211 198 130 202 137 225 78 284 -27 27 -42 34 -72 34 -22 0 -50 -8 -64 -16z\"\/><path d=\"M2275 2693 c-553 -48 -1095 -270 -1585 -649 -135 -104 -459 -423 -483 -476 -23 -49 -22 -139 2 -186 73 -142 361 -457 571 -626 285 -228 642 -407 990 -497 242 -63 336 -73 660 -74 310 0 370 5 595 52 535 111 1045 392 1455 803 122 121 250 273 275 326 19 41 19 137 0 174 -41 79 -309 363 -465 492 -447 370 -946 591 -1479 653 -113 14 -422 18 -536 8z m395 -428 c171 -34 330 -124 456 -258 112 -119 167 -219 211 -378 27 -96 24 -300 -5 -401 -72 -255 -236 -447 -474 -557 -132 -62 -201 -76 -368 -76 -167 0 -236 14 -368 76 -213 98 -373 271 -451 485 -162 444 86 934 547 1084 153 49 292 57 452 25z m909 -232 c222 -123 408 -262 593 -441 76 -74 138 -139 138 -144 0 -16 -233 -242 -330 -319 -155 -123 -309 -223 -461 -299 l-81 -41 32 46 c18 26 49 83 70 128 143 306 141 649 -6 957 -25 52 -61 116 -79 142 l-34 47 45 -20 c26 -10 76 -36 113 -56z m-2057 25 c-40 -58 -105 -190 -130 -263 -110 -324 -59 -707 132 -981 25 -35 42 -64 37 -64 -19 0 -241 119 -326 174 -188 122 -406 314 -532 468 l-58 71 108 103 c185 178 428 349 672 473 66 33 121 60 123 61 2 0 -10 -19 -26 -42z\"\/><path d=\"M2375 1950 c-198 -44 -350 -190 -395 -379 -18 -76 -8 -221 19 -290 114 -284 457 -406 731 -260 98 52 188 154 231 260 27 69 37 214 19 290 -38 163 -166 304 -326 360 -67 23 -215 33 -279 19z\"\/><\/g><\/svg><\/i> <img data-recalc-dims=\"1\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZpZXdCb3g9IjAgMCAxIDEiIHdpZHRoPSIxIiBoZWlnaHQ9IjEiIGRhdGEtdT0iaHR0cHMlM0ElMkYlMkZpMC53cC5jb20lMkZrb2JvdGFsay5jb20lMkZCTE9HJTJGd3AtY29udGVudCUyRnBsdWdpbnMlMkZwYWdlLXZpZXdzLWNvdW50JTJGYWpheC1sb2FkZXItMnguZ2lmJTNGcmVzaXplJTNEMTYlMjUyQzE2JTI2c3NsJTNEMSIgZGF0YS13PSIxIiBkYXRhLWg9IjEiIGRhdGEtYmlwPSIiPjwvc3ZnPg==\" data-spai=\"1\" border=0 \/><noscript data-spai=\"1\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif?resize=16%2C16&ssl=1\" data-spai-egr=\"1\" border=0 \/><\/noscript><\/p><div class=\"pvc_clear\"><\/div>\r\n<p class=\"wp-block-paragraph\">Top dividend paying stocks on NGX.\u00a0<\/p>\r\n<p>First, the NGX (or Nigeria Exchange Ltd) is the new name for Nigeria Stock Exchange.\u00a0 NSE took the name NGX when it\u00a0 de-mutualized and became a limited liability company in March 2021.<\/p>\r\n<p>NGX is one of Africa&#8217;s biggest stock exchanges; with a market capitalization of NGN32 billion ($78.408) million and over 200 listed equities as at the time of writing.<\/p>\r\n<p>Income investors can find some good dividend paying stocks on the NGX. In this post we list just 10 of them.<\/p>\r\n<h2>Importance of Dividend Paying Stocks<\/h2>\r\n<p>Dividend paying stocks is very important to income investors for many reasons.\u00a0 It should also be of interest to you even if you are not strictly investing for income.\u00a0 The reason is that dividend payment is plays a role in stock valuation.<\/p>\r\n<p>Beyond valuation, dividend paying stocks can be a good source of stable income streams.\u00a0 Many investors will want to invest in companies with a history of growing dividend.\u00a0<\/p>\r\n<p>Watch out for well established companies, that are stable and may no necessarily need to reinvest profits to grow.\u00a0 Such companies are more likely to pay dividend consistently than growing companies or start ups.<\/p>\r\n<p>High growth companies are less likely to pay dividend because they will be reinvesting their profits to achieve scale.\u00a0 Companies in the tech industry are usually in this category.<\/p>\r\n<h2>High Dividend Paying Publicly Quoted Companies In Nigeria<\/h2>\r\n<p>In compiling these list, we look at\u00a0 historical trend to identify companies that are consistent in dividend payment over a period of 10 years. We also considered the dividend per share and dividend yield for the last period.<\/p>\r\n<p>Now here&#8217;s our list of top 10 dividend paying companies in <a href=\"https:\/\/kobotalk.com\/BLOG\/nigerian-stock-market\/\">Nigeria stock market.<\/a><\/p>\r\n<table style=\"width: 94.4217%; height: 847px;\" width=\"543\">\r\n<tbody>\r\n<tr>\r\n<td width=\"64\">\r\n<p><strong>S\/N<\/strong><\/p>\r\n<\/td>\r\n<td width=\"139\">\r\n<p><strong>COMPANY<\/strong><\/p>\r\n<\/td>\r\n<td width=\"119\">\r\n<p><strong>PAYOUT<\/strong><\/p>\r\n<\/td>\r\n<td width=\"115\">\r\n<p><strong>DIVIDEND\/SHARE<\/strong><\/p>\r\n<\/td>\r\n<td width=\"107\">\r\n<p><strong>DIVIDEND YIELD<\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td width=\"64\">\r\n<p><strong>\u00a0<\/strong><\/p>\r\n<\/td>\r\n<td width=\"139\">\r\n<p>&nbsp;<\/p>\r\n<\/td>\r\n<td width=\"119\">\r\n<p>NGN&#8217;billion<\/p>\r\n<\/td>\r\n<td width=\"115\">\r\n<p>NGN<\/p>\r\n<\/td>\r\n<td width=\"107\">\r\n<p>%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>1<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>Zenith Bank<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>87.91<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>3.00<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>12.7<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>2<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>GTCO<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>82.41<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>3.00<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>11.81<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>3<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>Stanbic IBTC Holding<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>10.55<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>3.43<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>10.82<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>4<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>Access Bank Plc<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>23.10<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>0.80<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>9.29<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>5<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>Dangote Sugar<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>13.20<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>1.50<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>9.2<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>6<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>Dangote Cement<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>272.63<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>16.00<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>5.71<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>7<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>MTN Nigeria<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>172.40<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>9.40<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>5.50<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>8<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>Okomu Oil<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>1.91<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>7.00<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>4.93<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>9<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>Nestle Nigeria<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>54.06<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>60.50<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>3.55<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"text-align: center;\" width=\"64\">\r\n<p><strong>10<\/strong><\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"139\">\r\n<p>Nigerian Breweries<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"119\">\r\n<p>15.08<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"115\">\r\n<p>0.94<\/p>\r\n<\/td>\r\n<td style=\"text-align: center;\" width=\"107\">\r\n<p>2.15<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n<h2>Explaining the Terms<\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Let&#8217;s briefly explain the terms: Dividend, Dividend Per Share and Dividend Yield. Why are they important to the investor?<\/p>\r\n<h3>Dividend\u00a0<\/h3>\r\n<p>If you are new to stock investing, perhaps dividend is the most common term you hear.\u00a0 Dividend is a\u00a0 portion of the\u00a0 profits that a company pays to its ordinary share holders, usually annually.\u00a0 Though dividend is the primary reward for investing in a company&#8217;s ordinary shares, it is only paid out of profits and when declared by the directors.<\/p>\r\n<p>What this means is that it may not be compulsory that a company pays dividend to its shareholders in any financial year. Even if the company makes a profit in a financial year, it may decide to reinvest the profits to grow the business.<\/p>\r\n<p>And in the event that the company goes under, secured creditors and preferred shareholders get first consideration before ordinary shareholders.\u00a0 This is why ordinary shareholders are said to be the risk bearers.<\/p>\r\n<h4><strong>Dividend payout <\/strong><\/h4>\r\n<p>This is the total amount of dividend a company pays to its shareholders in a given financial year.\u00a0 If a company makes a profit of say 1 billion and pays 600 million to shareholders as dividend, the 600 million is the pay out.<\/p>\r\n<p>Dividend can be paid either in cash or other forms of asset, or by giving an additional shares to individual shareholders.\u00a0 When additional shares are given to shareholders, it is called a bonus.\u00a0 Shareholders will usually not pay for bonus shares.<\/p>\r\n<p>The other way a shareholder benefits from his investment is through capital appreciation.\u00a0 Capital appreciation comes from increases in the share price of a stock.\u00a0<\/p>\r\n<p>You bought a certain number of Zenith share at the current price of 24.00. In six months time, Zenith is trading at 30,00; you have gained 6.00.\u00a0 Thus, your investment has recorded a capital appreciation of 25% within that period.<\/p>\r\n<h3>Dividend Per Share<\/h3>\r\n<p>This is the amount of dividend payable for each share a shareholder holds.\u00a0 It is derived by dividing the total amount of dividend by the total units of shares outstanding.\u00a0 Usually dividend is paid per share.<\/p>\r\n<p>Thus, if you own 10,000 units of a company shares, and the company pays 1.00 per share in dividend in a particular financial year, what you get as your dividend is 1 x 10,000, which 10,000.<\/p>\r\n<h3>Dividend Yield<\/h3>\r\n<p>The dividend yield is a financial ratio that estimates the return on stock investing assuming dividend payment is the only form of return a shareholder gets.<\/p>\r\n<p>You derive it by dividing dividend per share by the stock&#8217;s current market price.\u00a0 It is expressed in percentages and shows how much a company pays out relative to the stock price.<\/p>\r\n<p>The ratio is important in comparing investment alternatives to know which offers better returns.\u00a0 For instance, you have the options of investing in a certain company shares or in a bank&#8217;s fixed deposit product.<\/p>\r\n<p>If a bank offers you 10% interest per annum, while the company shares is estimated to offer a dividend yield of 15% in that same financial year.\u00a0 Then it makes more sense to invest in the company shares, particularly if the returns is above prevailing inflation rate.<\/p>\r\n<p>The ratio is of significant important to income investors as it helps them to choose from among a basket of dividend paying stocks to invest in.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Dividend is very important to income investors.  It should also be important to other types of investors because dividend payment is one factor that features in stock valuation.  Apart from that, dividend can be a source of stable income stream and companies that pay consistent dividend benefit from rising stock prices.  We show in this article, 10 publicly traded companies in Nigeria that pay consistent dividend to share holders.<\/p>\n","protected":false},"author":2,"featured_media":878,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[5],"tags":[30,23,31],"class_list":["post-4190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-capital-market","tag-investment","tag-stocks"],"a3_pvc":{"activated":true,"total_views":2866,"today_views":0},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - 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