Valentine’s Day: 5 great Nigerian stocks to buy for your loved ones

Valentine’s Day is a time for celebrating love and affection, and what better way to show your love than by giving a gift that keeps on giving?

This year, consider investing in Nigerian stocks as a unique and meaningful way to express your love and commitment to your loved one. 

While traditional gifts such as flowers, chocolates, and romantic dinners are always appreciated, a stock investment is a thoughtful and practical gift that can secure a bright future for your significant other.

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Not only will your loved one become a shareholder in a publicly listed Nigerian company, but the investment has the potential to grow over time and provide long-term financial benefits. 

Take the opportunity to escape from the daily grind and enjoy some quality time together by indulging in a luxurious hotel stay in a beautiful location. Or, opt for a romantic dinner, a picnic, or a special home-cooked meal, with many restaurants offering Valentine’s Day dinner promotions. 

This Valentine’s Day, celebrate the season of love by showing your loved one how much you care, both now and in the future, with a gift that keeps on giving. Invest in Nigerian stocks and create a lasting memory that will bring joy and financial stability for years to come. 

According to Nairametrics’ chat with Mr. David Adonri, Executive Vice Chairman, Hicap Securities Limited and the Managing Director, Arthur Steven Asset Management Limited, Mr. Olatunde Amolegbe, firms like MTN Nigeria, Airtel Africa Zenith Bank, GTCO and Access Holdings are good stocks that have good fundamentals and bright future with consistent dividend payments you can buy for your love ones as valentine gifts. 

MTN Nigeria Plc 

• MTN first crossed one trillion naira in revenues in 2019 meaning it has taken the company just three years to surpass N2 trillion in revenues. 

• The company released its 2022 audited financial statements posting revenue of N2  trillion a 21.6% rise from the N1.6 trillion reported in 2021 (which at the time was also record-breaking). 
• Never in the history of Nigeria has a quoted company reported revenues of N2 trillion in a financial year. MTN becomes the first, while also reporting a blistering N358.8 billion in profit after tax. 
• Also the telecom firm reported a pre-tax profit of N533.972 billion which represents a 22.3% increase from the N436.689 billion the company reported during the same period in 2021.  
• MTN also said it will be paying a dividend of N10 per share taking its total dividend to N15.5 per share, which delivers an indicative dividend yield of 6.68%. MTN Nigeria has a market cap of N4.92 trillion and  traded yesterday at 241.90 per share. 

Airtel Africa Plc 

• The financial report shows that the telecommunication company recorded $523 million as profit for the nine months ended 31st December 2022, marking a 12.1% increase from $514 million during the comparable period last year. 
• Total customer base increased to 138.5 million, up 10.1 percent as the penetration of mobile data and mobile money services continued to rise, driving the data customer base up 13.6 percent and mobile money customer base up 22.2 per cent. 
• Revenue in reported currency grew by 12.1 percent, to $3.914 billion with Q3 growth of 10.7 per cent; revenue growth in constant currency was 17.3 per cent driven by double digit growth across all reporting segments, while mobile services revenue in Nigeria grew by 20.9 per cent, in East Africa by 11.9 per cent and in Francophone Africa by 11.8 per cent 
• Mobile Money revenue grew by 29.8 per cent, driven by 32.5 per cent growth in East Africa and 21.7 in Francophone Africa. EBITDA was $1.916 billion, up 12.6 per cent in reported currency and 17.4 per cent in constant currency, with an EBITDA margin of 49.0 per cent, increasing 20 basis points in reported currency and broadly flat in constant currency. Airtel Africa has a market value of N6.23 trillion and traded at N1,660 per share. 

Zenith Bank Plc 

• Zenith Bank Plc’s unaudited results for the third quarter ended September 30, 2022, showed a remarkable double-digit growth of 20% in gross earnings, from the N518.7 billion reported in the third quarter (Q3) 2021 to N620.6 billion in Q3 2022. 
• The performance demonstrated the Group’s resilience against a challenging macroeconomic environment. 
• According to the unaudited account presented to the Nigerian Exchange Limited (NGX), the growth in the top-line was driven by interest and non-interest income growth. Precisely, its interest income grew by 27 per cent, from N308.8 billion to N390.8 billion, driven majorly by growth in risk assets and an improvement in pricing. 
• The double-digit growth in top-line also aided its bottom line, as the Group recorded a 13 per cent year-on-year (Y-o-Y) increase in profit before tax, growing from N179.8 billion in Q3 2021, to N202.5 billion in Q3 2022. 
• Profit after tax equally grew by nine percent, from N160.6 billion to N174.3 billion in the same period. 

• Growth in non-interest income was enabled by the Group’s retail strategy, with continued substantial customer acquisition driving transactions, deposit growth, and growth in electronic banking income. Zenith Bank traded at N25.65 per share with a market value of N805.32 billion. 

Guaranty Trust Holding Co Plc  

• Guaranty Trust Holding Co Plc’s third quarter 2022 financial result showed a pretax profit of N169.724 billion, representing a growth of 11.73% year-on-year.  
• The unaudited Q3 financial results showed significant improvements across key performance indicators.  
• The positive performance came on the back of an inflationary year where businesses and their consumers have had to deal with the rising cost of goods and services. Nigeria’s inflation rate hit a new 17-year high of 20.77% in September 2022. 
• Analysis of the results indicates that the group’s profit after tax stood at N130.348 billion, a 0.73% marginal increase from N129.400 billion posted in Q3 2021. 
• Interest income calculated using the effective interest rate rose by 14.42% to N204.014 billion from N178.303 billion in the comparable period of last year, as investment securities in treasury bills, bonds and others rose.  
• During the period, the bank increased net interest income by 16.41% to N189.688 billion, against N162.942 billion in the same period of 2021. GTCO has a market cap of N740.19 billion and traded at 25.15 per share. 

Access Holdings Plc 

• In the first nine months of 2022, Access Holdings Plc improved its gross earnings by 30.9% to N906.9 billion from the N693.1 billion recorded in the same period of 2021. 
• This was boosted by the higher revenue from its corporate and investment banking segment, as well as the commercial banking business. 
• The company said it generated N497.5 billion from interest income, higher than the N395.1 billion achieved in the first nine months of last year, while the interest expense increased to N291.5 billion from N203.2 billion. 
• This left the net interest income at N280.5 billion versus N267.7 billion recorded as of September 30, 2021. 
• A look at the fee and commission income showed that it grew to N133.5 billion from N113.6 billion as a result of the higher earnings from credit-related fees and commissions, channels and other e-business income, commission on foreign currency denominated, commission on bills and letters of credit, and others.
• Access Holdings has a market value of N325.24 billion and is traded at N9.15 per share.