10 Top Nigerian Companies With the Highest Dividend Yields

Curious about which company pays the highest dividend in Nigeria? Wondering which Nigerian companies are consistent with their dividend payments? In this blog post, we’re going to highlight the top 10 Nigerian companies with the highest dividend yields.

A dividend yield indicates the percentage return on investment that shareholders receive from dividends relative to the current market price of the company’s stock.

In this article

• The top 10 Nigerian companies with the highest dividend yields
• Brief description and info on each company
• Fundamental analysis of each company

1. ZENITHBANK Zenith Bank Plc

Zenith Bank Plc is the first on our list of the top 10 Nigerian companies with the highest dividend yields. Established in May 1990, Zenith is one of Nigeria’s leading financial institutions, specializing in corporate, investment, retail, commercial, and consumer banking services.

Headquartered in Lagos, Nigeria, the bank commenced operations in July 1990 and became a public limited company on June 17, 2004. Zenith Bank’s shares were listed on the Nigerian Stock Exchange (NSE) on October 21, 2004, following a successful Initial Public Offering (IPO). With over 393 branches and business offices across Nigeria, Zenith Bank has become the largest bank in Nigeria by tier-1 capital.

Zenith Bank Plc Fundamental Analysis

Zenith Bank Plc gross earnings for the period ended September 2023 stood at N1,329,075,000,000, representing a significant increase from the previous year. The bank’s profit before tax also surged to N505,036,000,000, reflecting robust operational performance.

This bank maintained a healthy profit after tax of N434,172,000,000 for the period, signifying sound financial management. The total comprehensive income, including other comprehensive income, amounted to N647,736,000,000, highlighting its ability to generate value for stakeholders. Moreover, Zenith Bank’s strong asset base of N18,160,814,000,000 and net assets of N1,919,935,000,000 underscore its stability and financial strength.

In terms of market performance, Zenith Bank’s share price of 36.90 NGN and dividend yield of 9.23% indicate attractive returns for investors. With a price-to-earnings (P/E) ratio of 2.60 and earnings per share (EPS) of 14.17 NGN, the stock presents favourable investment opportunities in the finance sector. Analysts have also rated Zenith Bank as a “Buy,” reflecting confidence in its growth prospects and strategic direction.

2. SFSREIT SFS Real Estate Investment Trust

SFS Real Estate Investment Trust (REIT) Fund is a close-ended Real Estate Investment Trust Scheme that serves as a platform for pooling resources from various classes of investors interested in real estate investment opportunities. The fund targets investors such as Pension Fund Administrators, Investment Managers, Endowment Funds, Insurance Companies, International Investors, and Savvy Individual Investors seeking stability and returns associated with real estate investments.

This fund focuses on acquiring, holding, renting, renovating, and/or trading income-generating real estate properties, including residential homes, shopping malls, shops, hotels, offices, and warehouses, while benefiting from its tax-exempt status.

SFS REIT Fund made history as the first Real Estate Investment Trust (REIT) listed on the Nigeria Stock Exchange (NSE). It commenced operations through an Initial Public Offer of 20 million units of N100.00 each on July 23, 2007, officially listed on the NSE on February 28, 2008, at a price of N100.00 per unit. Despite market fluctuations, the Fund demonstrated resilience, closing the year with a price appreciation of 11%.

SFS Real Estate Fundamental Analysis

The SFS REIT Fund has maintained significant performance, recording a total income of N163,180,000,000 in the period ending June 2023, reflecting a substantial increase from the previous year. Despite administrative and other expenses, the Fund achieved a net income of N90,600,000,000, showcasing its ability to generate profits from its real estate investments.

The Fund’s basic earnings per unit increased to 6.27 from 4.53 in the comparative period, indicating enhanced profitability and value creation for investors. With a dividend yield of 8.34%, the SFS REIT Fund offers attractive returns to investors seeking income from real estate investments.

3. GTCO Guaranty Trust Holding Company Plc

Guaranty Trust Holding Company Plc (GTCO) is a leading financial institution in Africa, founded in 1990 with a vision to provide accessible and innovative financial services to individuals and businesses across the continent. Headquartered in Lagos, Nigeria, GTCO has expanded its operations to several African countries and the United Kingdom, demonstrating its commitment to driving financial inclusion and economic growth.

In April 2021, Guaranty Trust Bank Plc transitioned into Guaranty Trust Holding Company Plc (GTCo Plc) as part of its strategic plan to broaden its services beyond traditional banking and position for future growth.

GTCO Fundamental Analysis

Guaranty Trust Holding Company Plc (GTCO) has demonstrated robust financial performance in the first half of 2023, with a remarkable 217% increase in Profit Before Tax (PBT) compared to the same period in the previous year. This growth was driven by a substantial rise in gross earnings, which surged by 181.1% to ₦672.6 billion, primarily fueled by increased transactional volumes and enhanced other income.

The company’s interest income witnessed significant growth of 53.5%, further supported by a remarkable 385.0% increase in non-funded income. Net interest income also experienced substantial year-on-year growth of 47%, reflecting the effectiveness of GTCO’s core banking activities.

In addition to its strong financial performance, GTCO has maintained a commitment to rewarding shareholders through dividends. With a dividend yield of 8.28%, based on the indicated dividend yield percentage and the current price per share of 39.45 NGN, GTCO offers a high return on investment to its shareholders.

4. CUSTODIAN Custodian Investment Plc

Custodian Investment Plc (CUSTODIAN) is a leading investment holding company in Nigeria, offering insurance and reassurance solutions for both life and non-life cover. Founded in 1991, the company has established itself as a prominent player in the financial services sector, with significant holdings in various subsidiaries including Custodian & Allied Insurance Limited, Custodian Life Assurance Limited, Custodian Trustees, and Crusader Sterling Pensions Limited.

Custodian Investment Plc Fundamental Analysis

Custodian Investment Plc has shown strong financial performance up to December 31, 2023. It made ₦121.8 billion in total revenue, which is a big jump from the previous year, showing good growth in its operations.

The company’s profit after expenses was ₦23.8 billion, which is quite good considering the challenges in the market. It also gained money from the value of its investments and from actual gains it made.

Custodian Investment Plc pays a dividend of 7.87%, which is a nice return for investors based on its current share price. It also increased its earnings per share by 37.39%, which is a good sign for shareholders.

5. UCAP United Capital Plc

United Capital Plc (UCAP) is a leading financial services institution in Nigeria. It offers a wide range of products and services, including investment banking, asset management, trusteeship, securities trading, and insurance. The company caters to various clients, including corporations, governments, institutions, high net worth individuals, and retail investors in Nigeria and other African countries. With its headquarters in Lagos, Nigeria, United Capital Plc is listed on the Nigerian Stock Exchange.

United Capital Plc Fundamental Analysis

United Capital Plc (UCAP) has demonstrated strong financial performance as of December 31, 2022. The company reported gross earnings of ₦26.9 billion, indicating significant growth compared to the previous year, reflecting its effective business operations.

United Capital Plc maintained a huge operating profit before income tax of ₦13.5 billion, indicating efficient cost management practices. The profit for the period amounted to ₦9.7 billion, demonstrating its ability to generate profits amidst challenges. Furthermore, the company’s comprehensive income, which includes both profit and other comprehensive income, totalled ₦11.4 billion, highlighting its overall financial performance.

The company’s earnings per share (EPS) stood at 161 kobo. United Capital Plc distributes dividends to its shareholders, with a dividend yield of 6.81%.

Also Read: Top 10 Nigerian Companies to Invest | (Q1) 2024 | Investors Guide

6. NIDF Chapel Hill Denham Nig. Infras Debt Fund

Chapel Hill Denham Nig. Infras Debt Fund (NIDF) is a dedicated infrastructure debt fund based in Nigeria. Registered under the regulations of the Securities & Exchange Commission (SEC) and the National Pension Commission, it focuses on investing in infrastructure projects within Nigeria. Chapel Hill Denham, the managing firm, is an independent investment banking, securities trading, and investment management company known for its unbiased advisory and execution services. The fund is listed on the Nigerian Stock Exchange.

NIDF Fundamental Analysis

Chapel Hill Denham Nig. Infras Debt Fund (NIDF) has delivered commendable financial performance as of FY 2023. The fund’s primary source of income is interest income generated from infrastructure loans, which amounted to ₦12.7 billion for the year, showing substantial growth compared to the previous year.

The fund’s total income reached ₦22.1 billion. Other income streams, amounting to ₦8.9 billion, contributed significantly to the fund’s revenue diversification strategy.

NIDF reported a profit before tax of ₦20.4 billion, indicating its profitability and sound financial management. The fund’s profit after tax also stood at ₦20.4 billion, reflecting its ability to retain earnings for future growth and distributions.

Moreover, NIDF offers an attractive dividend yield of 6.81%, providing investors with a steady income stream alongside the potential for capital appreciation.

7. CAP Chemical and Allied Products Plc

Chemical and Allied Products Plc (CAP) is a leading player in the Nigerian paints and coatings industry. Originally established as a subsidiary of UAC of Nigeria Plc, CAP has a rich history dating back to 1957 when it began operations under the name ICI Exports Limited, the Nigerian arm of the British multinational Imperial Chemical Industries Plc (ICI). Over the years, CAP has evolved into a key player in the Nigerian market, holding the license for AkzoNobel, the world’s largest paint producer, in Nigeria.

CAP’s journey towards indigenization began in the 1970s with the first and second indigenization Decrees, leading to the transfer of ownership to Nigerian hands and the renaming of the company to Chemical and Allied Products Limited (CAPL). The company further transitioned to a public limited liability company (PLC) in 1991.

In a strategic move to enhance its market position, CAP merged with Portland Paints and Products Nigeria Plc in July 2021. This merger expanded CAP’s product portfolio and market reach, solidifying its position as a leading provider of decorative, automotive, industrial paints, and coatings.

Chemical and Allied Products Plc Fundamental Analysis

CAP has shown a good financial performance in the first half of 2023. The company reported a 12% increase in revenue compared to the same period last year, reaching ₦9.78 billion. This growth reflects CAP’s strong market presence and effective sales strategies.

Despite a slight decrease in operating profit by 6%, CAP maintained a healthy financial position, with an operating profit of ₦1.24 billion. The company’s finance income surged significantly to ₦786.5 million, showcasing its ability to capitalize on investment opportunities.

CAP’s profit before taxation witnessed a remarkable 44% increase, reaching ₦1.91 billion, indicating efficient cost management and operational excellence. After tax deductions, the company’s profit for the year stood at ₦1.28 billion, marking a substantial 42% growth compared to the previous year.

Furthermore, CAP offers an attractive dividend yield of 6.46%, providing investors with a steady income stream alongside the possibility for capital appreciation.

8. AFRIPRUD Africa Prudential Registrars Plc

Africa Prudential Plc, formerly known as Africa Prudential Registrars Plc, is a leading financial services company based in Nigeria. Established in 2006, the company specializes in share registration, corporate services, and investor relations solutions. With a strong commitment to innovation and excellence, Africa Prudential has emerged as a trusted partner to some of Nigeria’s largest corporations.

AFRIPRUD Fundamental Analysis

In its financial performance for the period ended June 30, 2023, Africa Prudential Plc reported a robust revenue from contracts with customers, amounting to ₦1.21 billion for the six-month period, reflecting a significant increase compared to the same period last year.

The gross profit stood at ₦658.38 million, showcasing Africa Prudential’s strong operational efficiency and ability to generate profits. The company’s diversified income streams, including interest income and other sources, contributed to a net operating income of ₦1.63 billion, highlighting its financial strength.

Despite facing challenges such as credit loss expenses and operating costs, Africa Prudential maintained a healthy profit before income tax of ₦597.22 million. After tax deductions, the company recorded a profit after tax of ₦415.07 million, demonstrating its ability to sustain profitability.

Moreover, Africa Prudential offers an attractive dividend yield of 6.29%, giving investors a steady income stream.

9. OKOMU Oilokomu Oil Palm Co Plc

Okomu Oil Palm Company Plc, listed as OKOMUOIL, is a prominent manufacturer and marketer of Banga Palm Oil and Noko 10 rubber bands in Nigeria. Established in 1976 as a Federal Government pilot project aimed at revitalizing oil palm production in Nigeria, Okomu Oil Palm has since grown into the country’s leading oil palm company. The company operates under the ownership of SOCFINAF (Luxemburg), a renowned industrial company with extensive oil palm operations across Africa and Indonesia.

Fundamental Analysis for Oilokomu Oil Palm Co Plc

For the year ended December 2023, Okomu Oil Palm Company Plc exhibited strong financial performance. The company reported a turnover of ₦74.99 billion, reflecting significant growth compared to the previous year. This increase in turnover is attributed to the company’s strategic expansion efforts and continued demand for its products in the market.

Okomu Oil Palm maintained a gross profit of ₦27.61 billion and recorded a profit from continuing operations before tax of ₦30.09 billion, demonstrating its ability to generate sustainable earnings. Moreover, the company reported a profit on continuing operations after tax of ₦21.17 billion.

Furthermore, Okomu Oil Palm offers a high dividend yield of 6.11%, providing investors with an additional incentive for investment.

10. TOTAL Totalenergies Marketing

TotalEnergies Marketing Nigeria Plc, operating under the symbol TOTAL, is a subsidiary of TotalEnergies, a multinational energy company with a presence in over 130 countries. Established over 50 years ago, TotalEnergies Marketing Nigeria Plc has emerged as a leader in the downstream sector of the Nigerian oil and gas industry. The company boasts an extensive network of over 570 service stations across Nigeria, offering a wide range of high-quality energy products and services to its customers.

Fundamental Analysis for Totalenergies

TotalEnergies Marketing Nigeria Plc demonstrated robust financial performance for the period ending September 2023. The company reported a substantial revenue of ₦422.58 billion, showcasing consistent growth compared to the previous fiscal year. This increase in revenue highlights the company’s strong market position and effective marketing strategies.

TotalEnergies Marketing Nigeria Plc maintained a gross profit of ₦56.12 billion, a profit before income taxation of ₦16.62 billion and a profit of ₦10.82 billion.

Furthermore, TotalEnergies Marketing Nigeria Plc offers a good dividend yield of 6.06%, providing investors with a significant payout.

Frequently Asked Questions On Which Company Pays The Highest Dividend In Nigeria?

1. What are the top 10 dividends?

The top 10 dividends are provided in the blog post, featuring companies such as Zenith Bank, SFS Real Estate, GTCO, CAP Chemicals, TotalEnergies Marketing Nigeria Plc, Okomu Oil Palm Co Plc, Afriland Properties Plc, and many more.

2. Which company pays the highest dividend in Nigeria?

Zenith Bank Plc is among the companies paying the highest dividends in Nigeria, with a dividend yield of 9.23%. But know that this may change at any time as the stock market is always fluctuating.

3. What companies pay the highest dividend yield?

Zenith Bank, SFS REIT, GTCO, CUSTODIAN, UCAP and others are known for paying high dividend yields, as detailed in the blog post.

4. Who currently pays the highest dividends?

Currently, Zenith Bank Plc is mentioned as one of the companies paying the highest dividends, with a dividend yield of 9.23%.

5. Most profitable shares in Nigeria

The most profitable shares in Nigeria are discussed in the blog post, highlighting companies with impressive financial performances and dividend payouts.

6. Largest companies in Nigeria by market cap

The largest companies in Nigeria by market cap are mentioned in the blog post, including their respective market capitalizations.

7. How to invest in dividend stocks in Nigeria

To invest in dividend stocks in Nigeria, start by researching reputable Nigerian companies known for consistent dividend payouts. Then, open a brokerage account with a trusted firm that offers access to Nigerian stocks. Deposit funds into your account and select dividend-paying stocks based on factors like dividend yield and the company’s financial stability.

Conclusion

These top 10 Nigerian companies with the highest dividend yields stand out. They offer investors an opportunity to earn a steady income while participating in the country’s thriving economy. From established conglomerates to emerging players, each company brings its unique strengths and growth prospects to the table.

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Disclaimer: Investing in the stock market involves risk, and our article is for informational purposes only. Make informed decisions and invest wisely.

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