Top Nigerian (NSE) Dividend Stocks

Top Nigerian (NSE) Dividend Stocks

UPDATED Jun 28, 2022

What are the best Nigerian (NSE) Dividend Stocks?

According to our Simply Wall St analysis these are the best Nigerian dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

5 companies meet this criteria in the Nigerian market

Guaranty Trust Holding Company Plc operates as a financial holding company for Guaranty Trust Bank Plc that provides commercial banking services in Nigeria, Ghana, Gambia, Sierra Leone, Liberia, Cote D'Ivoire, Kenya, Uganda, Rwanda, Tanzania, and the United Kingdom.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: GTCO's dividend (14.49%) is in the top 25% of dividend payers in the NG market (8.06%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 30.7% below our estimate of its fair value

  • Earnings are forecast to grow 24.36% per year

Risks

  • Shareholders have been diluted in the past year

View all Risks and Rewards

Stanbic IBTC Holdings PLC, a financial holding company, provides banking and other financial services to corporate and individual customers in Nigeria and internationally.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: STANBIC's dividend (8.94%) is in the top 25% of dividend payers in the NG market (8.06%)

  • Notable Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (7.5x) is below the NG market (8.6x)

  • Earnings are forecast to grow 20.53% per year

Risks

  • High level of non-cash earnings

View all Risks and Rewards

United Bank for Africa Plc, together with its subsidiaries, primarily provides corporate, commercial, and retail banking services in Nigeria, rest of Africa, and internationally.

Dividend Criteria

  • Earnings Coverage

  • Future Dividend Coverage

  • High Dividend: UBA's dividend (13.33%) is in the top 25% of dividend payers in the NG market (8.06%)

  • Notable Dividend

  • Growing Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 45.6% below our estimate of its fair value

  • Earnings are forecast to grow 16.28% per year

  • Earnings have grown 10.9% per year over the past 5 years

Risks

  • High level of non-cash earnings

View all Risks and Rewards

Dangote Cement Plc, together with its subsidiaries, prepares, manufactures, distributes, and sells cement and related products in Nigeria.

Dividend Criteria

  • Stable Dividend

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: DANGCEM's dividend (7.27%) is low compared to the top 25% of dividend payers in the NG market (8.06%).

  • Earnings Coverage

See Full Stock Report

Rewards

  • Earnings are forecast to grow 16.22% per year

  • Earnings have grown 12.5% per year over the past 5 years

Risks

No risks detected for DANGCEM from our risks checks.

View all Risks and Rewards

Dangote Sugar Refinery Plc manufactures and sells refined sugar to consumers and industrial markets in Nigeria.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: DANGSUGAR's dividend (6.25%) is low compared to the top 25% of dividend payers in the NG market (8.06%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 30.8% below our estimate of its fair value

  • Earnings are forecast to grow 24.77% per year

Risks

  • Profit margins (7.5%) are lower than last year (13.5%)

View all Risks and Rewards
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