Nigerian Banking Titans, Others with Dividend Track Records
Nigerian banking titans, non-bank financial services companies, and others that have maintained dividend payments over the last five years have been recommended for investors’ picks in 2025.
The companies, which include GTCO, UBA, Zenith, ACCESS Holdings Plc, Dangote Cement, United Capital Plc, and others, are expected to continue to pay dividends to shareholders, but at a dividend degree, as historical data revealed.
“The listed tickers have December as their year-end, and as such, entry and exit periods is estimated at January-June,” Meristem Securities Limited said in an update. Specifically, the Nigerian top lenders have maintained dividend payments in a sustainable manner in line with shareholder risk profiles, with UBA ranking as the best on the radar of top lenders.
According to data released by Meristem Securities Limited, UBA Plc has delivered the most juicy dividend yield to investors in the last five years. At an average of 13.12% in the last five years, UBA is expected to maintain lead among top dividend aristocrats among top lenders in 2024.
Analysts at Meristem Securities Limited estimated UBA financial dividend yield for 2024 at 12%, Access Holdings at 11.54%, Zenith Bank at 11%, and GTCO at 8.25%. On Tier-2 radar, FCMB dividend yield for 2024 is estimated to settle at 11.66%. In the last five years, Access, GTCO, Zenith, and UBA have maintained consistent dividend payments to shareholders.
UBA posted the highest dividend yield of 13.12% over 5-years, followed by Zenith at 11.80%, GTCO at 11.61%, and Access at 7.97% in average dividend yield. In the financial services sector, United Capital Plc delivered the highest dividend yield of 13.68% average in five years. All the tier-2 banks have lower dividend yield versus top lenders in the market.
Analysts at Meristem Securities recommend targeting dividend yields between 5% and 10%, as this range tends to offer the best balance of potential for both dividend growth and stock price appreciation.
“We recommend stocks based on… companies that have been consistent in dividend declarations in the last five years… Companies with upside potential of at least 10%… Companies with an expected dividend yield of at least 5% in 2024,” Meristem Securities Limited said in its note. #Nigerian Banking Titans, Others with Dividend Track Records Senate Promises Adequate Funding for Fiscal Responsibility Commission
