As an investor, it’s crucial to keep an eye on companies that consistently pay dividends to their shareholders.
In this blog post, we’ll take a closer look at some of the top companies listed on the Nigerian stock exchange that have a track record of paying dividends and are expected to continue doing so in 2024.
We’ll also highlight some key factors that investors should consider when evaluating dividend-paying stocks in Nigeria to help you make informed investment decisions.
So, let’s dive in and explore which Nigerian companies have had their dividend declared and those likely to declare dividends in 2024.
List of dividend declared so far in 2024
Read: How to Buy Shares in Nigeria in 2024
Nigeria Stock Dividends 2023
| COMPANY | DIVIDEND | PAYMENT DATE |
|---|---|---|
| GEREGU | ₦8.00 | 2023-03-29 |
| MTN NIGERIA | ₦10.00 | 2023-04-20 |
| Dangote Cement | ₦20.00 | 2023-04-14 |
| Lafarge Africa | ₦2.00 | 2023-03-28 |
| PZ Cussons | ₦1.01 | 2023-20-26 |
| BUA Cement | ₦2.60 | 2023-07-20 |
| United Capital | ₦1.50 | 2023-03-28 |
| Transcorp Hotel | ₦0.13 | 2023-03-04 |
| Dangote Sugar | ₦1.50 | 2023-15-04 |
| NASCON Allie | ₦1.00 | 2023-05-26 |
| Africa Prudent | ₦0.50 | 2023-05-02 |
| Custodian Investment | ₦0.55 | 2023-04-13 |
| Nigerian Breweries | ₦1.03 | 2023-04-26 |
| Nestle Nigerian | ₦36.50 | 2023-05-18 |
| AIICO Insurance | ₦0.30 | 2023-06-15 |
| Jaiz Bank | ₦0.05 | 2023-06-14 |
| CWG Plc | ₦0.04 | 2023-04-28 |
| Ikeja Hotel | ₦0.075 | 2023-7-31 |
| Okomu Oil | ₦12.00 | 2023-04-25 |
| Eterna Plc | ₦0.15 | 2023-05-12 |
| BUA Foods | ₦4.50 | 2023-09-21 |
| Transnational Corp | ₦0.05 | 2023-04-27 |
| NACHO | ₦1.20 | 2023-05-26 |
| Seplat Energy | ₦0.15 | 2023-03-16 |
Highest Dividend Paying Stocks in Nigeria 2023
| COMPANY | DIVIDEND YIELD | PRICE | PAY DATE |
|---|---|---|---|
| United Capital | 12.77% | ₦11.75 | 2023-03-28 |
| Okomu Oil | 12.24% | ₦171.50 | 2023-04-25 |
| Custodian | 10.83% | ₦6.00 | 2023-04-13 |
| NAHCO | 10.04% | ₦11.95 | 2023-05-26 |
| PZ Cussons | 7.80% | ₦12.95 | 2023-20-26 |
| Dangote Sugar | 7.69% | ₦19.50 | 2023-15-04 |
| Dangote Cement | 7.41% | ₦270.00 | 2023-04-14 |
| NASCON Allied | 6.99% | ₦14.30 | 2023-05-26 |
| MTN NIGERIA | 6.82% | ₦228.70 | 2023-04-20 |
| Nestle Nigerian | 5.89% | ₦1,043.80 | 2023-05-18 |
| AIICO Insurance | 5.56% | ₦0.54 | 2023-06-15 |
What is Dividend Policy?
A dividend policy is the policy or plan that a company uses or adopts to structure or decide how much and when to distribute dividends to its shareholders.
How to Calculate Dividend per Share
Dividends per share (DPS) is calculated by dividing the total number of dividends paid out by a company (including interim dividends) over a period of time, by the number of shares outstanding.
There are 2 formulae for calculating dividend per share (DPS):
Total Dividends Paid ÷ Shares Outstanding
or
Earnings Per Share x Dividend Payout Ratio
For example, suppose company XYZ paid ₦1 million in dividends to its preferred shareholders last year, none of which were special dividends. The company has 5 million shares outstanding, so the DPS for company XYZ is 0.2 per share.
1. Geregu Power Plc, ₦8 per share
Geregu Power Plc is a Nigerian power company that operates a thermal power plant located in Ajaokuta, Kogi State, Nigeria. They are engaged in the generation and distribution of electricity.
The Geregu power plant has a capacity of 434 megawatts and operates using natural gas as its primary fuel source. The plant was initially commissioned in 2007 but underwent a rehabilitation process in 2013 to improve its efficiency and output.
The company’s shares are listed on the Nigerian Stock Exchange and have consistently paid out dividends to its shareholders over the years. In year ended December 31, 2022, shareholders of Geregu Power Plc reaped a cumulative dividend payment of N20billion at N8:00 per share as returns on their investment in the company.
The biggest investors in Geregu Power Plc are the Otedola’s, with shares summing up to 7.7 million units in the electricity-generating firm.
Looking ahead, Geregu Power Plc is expected to continue its dividend payout policy, subject to the company’s profitability and cash flows. The power company’s dividend payment is likely to be influenced by the performance of the Nigerian power sector, government policies, and the overall economic climate.
2. MTN Nigeria
MTN Nigeria is a leading telecommunications company in Nigeria and a subsidiary of the South African-based MTN Group. The company provides voice and data services to over 70 million customers in Nigeria, making it the largest mobile operator in the country.
The company’s shares are listed on the Nigerian Stock Exchange. MTN Nigeria has a track record of paying out dividends to its shareholders.
In 2022, the company declared a final dividend of N7.00 per share, bringing the total dividend payout for the year to N10.95 per share.
Looking ahead, the company’s recent investments in data and digital services are expected to drive revenue growth and potentially increase its dividend payouts.
3. Dangote Cement Plc
Dangote Cement Plc is a Nigerian multinational cement company that operates in several African countries. The company’s shares are listed on the Nigerian Stock Exchange. Dangote Cement Plc has a strong track record of dividend payouts, having consistently paid dividends to its shareholders over the years.
In 2022, the company declared a dividend of N16 per share, bringing the total dividend payout for the year to N272.6 billion.
Dangote Cement Plc is expected to continue its dividend payout policy, subject to the company’s profitability and cash flows. The company’s dividend payment is likely to be influenced by the performance of the Nigerian construction industry, government policies, and the overall economic climate.
4. Lafarge Africa Plc
Lafarge Africa Plc is a leading cement manufacturer in Nigeria. The company’s shares are listed on the Nigerian Stock Exchange. In terms of dividend performance, Lafarge Africa Plc has consistently paid dividends to its shareholders over the years.
In 2022, the company declared a dividend of N1.50 per share, bringing the total dividend payout for the year to N7.5 billion.
Lafarge Africa Plc’s dividend performance is likely to be influenced by the performance of the Nigerian construction industry, government policies, and the overall economic climate. The company’s recent investments in renewable energy and waste management are expected to drive revenue growth and potentially increase its dividend payouts.
5. PZ Cussons Nig Plc
PZ Cussons Nig Plc is a Nigerian subsidiary of the British consumer goods company PZ Cussons. The company’s shares are listed on the Nigerian Stock Exchange. PZ Cussons Nig Plc has a track record of paying dividends to its shareholders, but the dividend payouts have been inconsistent over the years.
In 2022, the company declared a final dividend of N0.10 per share, bringing the total dividend payout for the year to N0.20 per share.
PZ Cussons Nig Plc’s dividend performance is uncertain, given the challenging operating environment for consumer goods companies in Nigeria. The company’s profitability has been impacted by currency devaluation, inflation, and weak consumer spending.
Read: The most expensive car in the world
6. BUA Cement Plc
BUA Cement Plc is a Nigerian cement company that operates in several African countries. The company’s shares are listed on the Nigerian Stock Exchange. BUA Cement Plc has a strong track record of dividend payouts, having consistently paid dividends to its shareholders over the years.
In 2022, the company declared a dividend of N3.30 per share, bringing the total dividend payout for the year to N78.9 billion.
BUA Cement Plc’s dividend performance is likely to be influenced by the performance of the Nigerian construction industry, government policies, and the overall economic climate. The company’s recent investments in expanding its production capacity and diversifying its product portfolio are expected to drive revenue growth and potentially increase its dividend payouts.
7. United Capital Plc
United Capital Plc is a Nigerian financial services company that provides investment banking, asset management, and securities trading services. The company’s shares are listed on the Nigerian Stock Exchange. United Capital Plc has a track record of paying dividends to its shareholders, but the dividend payouts have been inconsistent over the years. In 2022, the company declared a dividend of N0.50 per share, bringing the total dividend payout for the year to N2.9 billion.
Looking ahead to 2023, United Capital Plc’s dividend performance is likely to be influenced by the performance of the Nigerian financial services industry, government policies, and the overall economic climate. The company’s recent investments in digital platforms and strategic partnerships are expected to drive revenue growth and potentially increase its dividend payouts. Overall, United Capital Plc is a stock to watch for investors looking for potential dividend payouts in the Nigerian stock market.
8. Transcorp Hotel Plc
Transcorp Hotel Plc is a Nigerian hospitality company that operates several hotels in Nigeria. The company’s shares are listed on the Nigerian Stock Exchange. Transcorp Hotel Plc has a track record of paying dividends to its shareholders, but the dividend payouts have been inconsistent over the years. In 2022, the company declared a dividend of N0.05 per share, bringing the total dividend payout for the year to N1.4 billion.
Looking ahead to 2023, Transcorp Hotel Plc’s dividend performance is likely to be influenced by the performance of the Nigerian hospitality industry, government policies, and the overall economic climate. The company’s recent investments in upgrading its facilities and expanding its services are expected to drive revenue growth and potentially increase its dividend payouts. Overall, Transcorp Hotel Plc is a stock to consider for investors looking for potential dividend payouts in the Nigerian stock market.
9. Dangote Sugar Plc
Dangote Sugar Plc is a Nigerian sugar manufacturer that operates in several African countries. The company’s shares are listed on the Nigerian Stock Exchange. Dangote Sugar Plc has a history of paying dividends to its shareholders, but the dividend payouts have been volatile over the years. In 2022, the company declared a dividend of N1.50 per share, bringing the total dividend payout for the year to N29.8 billion.
Looking ahead to 2023, Dangote Sugar Plc’s dividend performance is likely to be influenced by the performance of the Nigerian sugar industry, government policies, and the overall economic climate. The company’s recent investments in expanding its production capacity and diversifying its product portfolio are expected to drive revenue growth and potentially increase its dividend payouts. Overall, Dangote Sugar Plc is a stock to consider for investors looking for potential dividend payouts in the Nigerian stock market.
10. Nascon Allie
Nascon Allie is a Nigerian food processing company that produces salt, seasoning, and vegetable oil products. The company’s shares are listed on the Nigerian Stock Exchange. Nascon Allie has a track record of paying dividends to its shareholders, but the dividend payouts have been inconsistent over the years. In 2022, the company declared a dividend of N0.60 per share, bringing the total dividend payout for the year to N6.1 billion.
Looking ahead to 2023, Nascon Allie’s dividend performance is likely to be influenced by the performance of the Nigerian food processing industry, government policies, and the overall economic climate. The company’s recent investments in expanding its production capacity and improving its distribution network are expected to drive revenue growth and potentially increase its dividend payouts. Overall, Nascon Allie is a stock to consider for investors looking for potential dividend payouts in the Nigerian stock market.
11. Africa Prudent Plc
Africa Prudent Plc is a Nigerian financial services company that provides investment banking, asset management, and securities trading services. The company’s shares are listed on the Nigerian Stock Exchange. Africa Prudent Plc has a track record of paying dividends to its shareholders, but the dividend payouts have been inconsistent over the years. In 2022, the company declared a dividend of N0.05 per share, bringing the total dividend payout for the year to N307 million.
Looking ahead to 2023, Africa Prudent Plc’s dividend performance is likely to be influenced by the performance of the Nigerian financial services industry, government policies, and the overall economic climate. The company’s recent investments in digital platforms and strategic partnerships are expected to drive revenue growth and potentially increase its dividend payouts. Overall, Africa Prudent Plc is a stock to watch for investors looking for potential dividend payouts in the Nigerian stock market.
12. Custodian Investment Plc
Custodian Investment Plc is a Nigerian financial services company that provides insurance, asset management, and securities trading services. The company’s shares are listed on the Nigerian Stock Exchange. Custodian Investment Plc has a track record of paying dividends to its shareholders, and the dividend payouts have been consistent over the years. In 2022, the company declared a dividend of N0.35 per share, bringing the total dividend payout for the year to N8.1 billion.
Looking ahead to 2023, Custodian Investment Plc’s dividend performance is likely to be influenced by the performance of the Nigerian financial services industry, government policies, and the overall economic climate. The company’s recent investments in digital platforms and strategic partnerships are expected to drive revenue growth and potentially increase its dividend payouts. Overall, Custodian Investment Plc is a stock to consider for investors looking for consistent dividend payouts in the Nigerian stock market.