Companies listed on the Nigerian Exchange (NGX) have distributed over N1.5 trillion in dividends for the financial year ending 2023. This substantial payout underscores the robust performance and shareholder value delivered by these companies despite macroeconomic challenges.
Leading Dividend Payouts
Approximately 58 companies on the NGX have either distributed or plan to distribute dividends based on their 2023 returns. Dangote Cement Plc leads the list with a total dividend distribution of approximately N511 billion, followed by Airtel Africa Plc, which will distribute N276 billion.
Importance of Dividend Yield
Beyond the total volume of dividends paid, assessing the return on investment (ROI) provides a comprehensive view of the value shareholders receive from a company. A crucial metric in this evaluation is the dividend yield.
Understanding Dividend Yields
Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. It is calculated by dividing the annual dividends per share by the current stock price and is expressed as a percentage. This metric is particularly useful for investors because it shows the income an investment generates compared to its market price. A higher dividend yield indicates a higher return on investment from dividends alone, without considering capital gains.
Top 10 Companies with Highest Dividend Yields
In this report, Inclusifund tracks the top 10 companies that generated the highest dividend yields on the NGX, based on their share price as of their ex-dividend date. The ex-dividend date is the cutoff day when a shareholder must own a stock to be eligible to receive the upcoming dividend.
1. Custodian Investment Plc – 8.56%
Custodian Investment Plc distributed a total dividend of N0.8 per share for the fiscal year, with an interim dividend of N0.15 and a final dividend of N0.65. With its share price at N9.00 as of the ex-dividend date of June 13, 2024, it represents a dividend yield of 8.56%. The group distributed a total dividend of N5.9 billion for FY 2023, from its net income of N21 billion.
2. Fidelity Bank Plc – 9.24%
Fidelity Bank Plc distributed a total dividend of N0.85, with an interim dividend of N0.25 and a final dividend of N0.60 for FY 2023. With its share price at N9.00 as of the ex-dividend date of April 29, this represents a dividend yield of 9.24%. The bank distributed a total dividend of N27.2 billion from its net income of N99.45 billion, marking a dividend payout ratio of 27.4%, the second highest among banking stocks.
3. Access Holdings Plc – 9.33%
Access Holdings Plc, the parent group of Access Bank, distributed a total dividend of N2.1, featuring an interim dividend of N0.30 and a final dividend of N1.80. With its share price at N23 as of the ex-dividend date of April 12, 2024, the stock generated a dividend yield of 9.33% for FY 2023. The group distributed N74.6 billion in total dividends for FY 2023, marking a dividend payout ratio of 12.1%, based on a net income of N619.3 billion.
4. UPDC REIT – 9.65%
UPDC REIT distributed N0.41 in total dividends for FY 2023, with N0.19 as an interim dividend and N0.22 as a final dividend. With its share price at N4 as of May 17, 2024, the ex-dividend date, the stock generated a dividend yield of 9.65%. The real estate investment trust paid out N1.09 billion in total dividends, from its net assets of N3.8 billion, marking a dividend payout ratio of 28.8%.
5. GTCO Holdings – 9.79%
GTCO Holdings, the parent group of GT Bank, distributed N3.2 as total dividends for FY 2023. The group distributed N0.5 as an interim dividend and N2.7 as a final dividend. With its share price at N32.70 as of the ex-dividend date, the stock achieved a dividend yield of 9.79%.
Conclusion
These companies have demonstrated strong performance and commitment to shareholder value through substantial dividend distributions. Investors seeking income from dividends can find attractive opportunities among these top-yielding stocks on the Nigerian Exchange.