Guaranty Trust Holding Company (GTCO) Plc is the best dividend paying company in Nigeria, as investors are getting back more for each Naira they invest in the equity position.
The lender’s stock has a dividend
yield of 17.18 percent, which is higher than United Bank for Africa’s,
(14.18%); Zenith Bank, (14%); AXA Mansard, (13.89%); United Capital, (12.61%); Total, (10.52%);
Stanbic IBTC, (10.53%), and Access Bank, (8.43 percent).
Dividends provide steady income to
investors and most of them perceive it as a signal of a company’ financial
strength, which is why there is the news of a payment that, sometimes, affects
the share price.
Of course, dividend paying stocks are
known to have weathered severe market storms as companies with strong
balance-sheets, steady cash flow, and attractive yields can save investors from
inflation as they are expected to grow steadily.
Stanbic IBTC and Seplat Energy have
paid interim dividends so far, and it is expected that more will be rewarding
their owners from distributable profit.
It must be noted that the equity
market rally since the start of the year is partly buoyed by investors’
optimism of steady dividend payment as companies have remained resilient amid a
difficult business environment.
The NGXASI has returned 13.95 percent
so far this year, but the momentum in stock rally has slowed due to sell offs
in bellwether stocks in the last one week.
Culled from Money Central.
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