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.
Dangote Cement has consistently paid dividends. In the last five years, it has increased its dividend by 17% every year with an average payout ratio of 98%.
For the first nine months of 2025, Dangote Cement reported a profit of N743.263 billion, 48% higher than 2024’s full-year profit.
Annualizing this figure gives an estimated full-year profit of N1.0 trillion for the 2025 financial year. Given its historical 98% payout ratio, the dividend for 2025 is expected to reach N58 per share.
Dangote Cement remains a solid choice for dividend-seeking investors, with both strong historical payouts and growth potential. Given the expected dividend this year, investors may earn up to 7% as dividend income.
