Nigeria’s stock market surged by over 51% YtD in 2025, with twenty-two SWOOT (Stocks Worth Over One Trillion) Naira companies recording an average share price YtD gain of 69%.
Among the SWOOTs; Presco, MTNN, International Breweries, Okomu Oil, Nigerian Breweries and Nestle recorded triple-digit share price growth
While this is impressive, the gains can only be realized when you sell your holdings, which means that these returns aren’t always accessible immediately.
This is where dividends come in.
Investors in equities earn returns through two main streams: capital gains and dividend income. Capital gains refer to the price difference between when you purchase a stock and when you sell it.
Dividend income, on the other hand, is the portion of a company’s profit that it shares with its shareholders.
Several SWOOT companies pay reliable dividends. While companies like Dangote Cement and BUA Foods pay only final dividends, banks, Seplat, Okomu, and Presco pay interim and final dividends, with Seplat paying quarterly.
Okomu and Presco have already paid two interim dividends and are expected to pay a final dividend based on their 2025 full-year results.
What matters most is dividend yield; how much cash investors earn for every naira invested—alongside dividend size, growth, and payout sustainability.
A higher dividend yield indicates that you’re earning more in dividends for each N1 you invest.
That said, here are five dividend stocks to consider taking a position in this January, with the banking sector dominating in terms of yield.
Seplat is one of the strongest income stocks on the NGX, backed by a solid quarterly dividend policy
Over the last five years, the company has maintained an average payout ratio of 49% while growing dividends by an impressive 68% annually.
In 2024, Seplat paid N263.27 per share across four quarters, alongside N158 billion in special dividends, reflecting a 78% payout.
For 2025, it has already paid three quarterly dividends totaling N251.85 per share.
Based on this trend, Seplat’s Q4 dividend is estimated at around N80 per share. With management targeting $1 billion in cumulative dividends by 2030, Seplat remains well-positioned for sustained income growth.
At the projected Q4 dividend, Seplat’s total 2025 payout would translate into a dividend yield of over 5 per cent, reinforcing its appeal as a high-income stock.
