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.
GTCO has a strong dividend culture, growing dividends by about 30% annually over the past five years.
For 2024, GTCO paid a total dividend of N8.03 per share, amounting to about N263 billion; just 23% of the year’s profit.
For 2025, the bank has already paid an interim dividend of N1 per share, or N34.14 billion, 5% of its nine-month profit of N699.64 billion.
Full-year profit is expected to be around N900–N950 billion if current trends hold.
With its low payout ratio, GTCO is well positioned to pay a final dividend higher than last year’s N7.03. If payout moves closer to its five-year average of 38%, the final dividend could reach N9–N11, pushing total 2025 dividends to N10–N12 per share.
At a 2025 closing price of N90.70, that implies a forward yield of around 12%, making GTCO one of the most attractive dividend plays on the NGX.
