As the Nigerian market continues to navigate through uncertainties, one strategy that is worth considering is investing in dividend-paying stocks.
They offer investors a reliable way to earn a passive income while navigating market volatility.
Echoing this, experts during a recent episode of “Drinks and Mics“ titled “How a Global Recession Will Impact Nigeria” recommended investing in dividend stocks.
The episode featured experts: Ugo Obi-Chukwu (CEO of Nairametrics), Tunji Andrews (CEO of Awabah), Ola Oladele (founder of The Money Wit Club), and Arnold Dublin-Green (CIO at Cordros Capital).
During the discussion, the experts highlighted the benefits of high dividend-paying stocks, citing companies like GTCO, Presco, and Okomu Oil as prime examples.
With several Nigerian-listed companies having released their 2024 full-year results and declared final dividends, an analysis by Nairametrics highlights stocks offering double-digit dividend yields based on the total dividends declared for the 2024 financial year.
Whether as a short-term “dividend trapper” aiming to capitalize on quick payouts or a long-term income investor seeking steady returns, these high-yield stocks are worth considering.
UBA – 15.97% yield
United Bank for Africa (UBA) is offering a juicy dividend yield of 15.97% based on its share price of N31.30 as of April 14, 2025.
The bank declared a N3.00 final dividend to go with the N2.00 interim, totaling N5.00 per share for 2024, a 26.6% payout ratio, according to the notes to the 2024 financial statements
The final dividend will be paid on April 26, 2025, to shareholders registered by April 11.
UBA has paid over N185 billion in dividends over the past four years, showing consistency in rewarding investors. However, despite strong earnings, the share price has declined 7.9% year-to-date, which partly explains the high yield.
Still, the stock remains active in the market — with N41.5 billion in traded value and 1.13 billion shares exchanged over the past three months, offering investors both liquidity and income potential.
GTCO – 11.81% yield
GTCO stands out for investors looking to earn a steady income. With a total dividend of N8.03 per share for 2024, up 151% from last year, it is offering strong cash returns with solid profits of over N1 trillion.
Over the last five years, the company has consistently paid dividends and grown them by an average of 27% per year, showing a commitment to rewarding shareholders.
Beyond dividends, the stock has also gained about 19% this year, meaning investors can earn both income and potential price growth. Plus, it’s easy to buy or sell GTCO shares because of its high trading volume.
GTCO offers a reliable mix of high dividend income, growth, and liquidity, making it a smart choice for income-focused investors.
Fidelity Bank -11.06%
Fidelity Bank is quietly becoming a favorite for dividend-focused investors, offering a strong dividend yield of 11.06%.
For 2024, it is paying out N2.10 per share as a N1.25 final dividend plus a N0.85 interim, marking a 231% increase in payout.
The bank is returning over N89 billion to shareholders from a N278 billion post-tax profit, translating to a 33% payout ratio.
The final dividend will be paid on April 29, 2025, to shareholders on record.
Currently trading at N18.20, down slightly from N19.40, the yield remains attractive. However, if the share price continues to rally, the dividend yield will naturally decline, but investors could benefit from capital appreciation instead.
Thanks to strong trading liquidity, the stock remains easily tradable, making it a practical pick for both short-term dividend plans and longer-term growth potential.
Zenith Bank – 10.0% Yield
Zenith Bank has delivered a total dividend of N5.00 per share for the 2024 financial year, N4.00 as a final dividend, and N1.00 already paid as interim.
This brings the total cash payout to shareholders to N195.68 billion, reflecting a 10% dividend yield based on the April 14, 2025, closing price. The final dividend will be paid on April 29, 2025.
Despite reporting a massive post-tax profit of N1.03 trillion, the bank is only distributing 18.94% of its earnings with a relatively low payout ratio.
This leaves room for growth, and given its strong earnings and robust retained profits, many investors will expect higher payouts in the coming years.
Zenith’s stock is also up 9.89% year-to-date, showing signs of investor confidence.
With a 5-year compound dividend growth rate of 20%, it remains one of the market’s most consistent dividend-paying banks — and one income investors are keeping close tabs on.
Overall, the tempered share price growth seen across many high-dividend banking stocks probably helped sustain or even boost their dividend yields.
For instance, while stocks like UBA and Fidelity Bank have seen minimal or negative price movements year-to-date, their yields remain firmly in double-digit territory.
This contrasts with companies like Presco, which, despite offering a relatively modest dividend yield of 5.35%, has delivered an impressive 65.25% capital gain year-to-date.
Access Holdings is another name on the watchlist. While its full-year 2024 results are yet to be released, its interim dividend of N0.45 and a projected annual dividend (ADY) of N2.25 at the current share price of N20.75 suggest a yield of around 11%.
Outside the banking space, Seplat Energy provides a strong alternative with its quarterly dividend payout structure.
Having already distributed about N152 per share in the first three quarters of 2024 (based on exchange rates), the company recently declared a final dividend of 3.6 cents and a special dividend of 3.0 cents per share to be paid to shareholders on record as of May 9, 2025.
Ultimately, while share prices may fluctuate, these companies’ commitment to returning value through dividends, whether on a tactical, short-term basis or as part of a long-term wealth strategy, continues to make them strong candidates for income-seeking investors.
