The share price of Zenith Bank Plc is expected to see a downward adjustment to around N127.15 when trading opens on Monday, following its qualification date for dividend payment and the expected ex-dividend markdown.
In a corporate disclosure filed with the Nigerian Exchange (NGX) Limited on April 7, the bank announced a final dividend of N8.75 per share, bringing the total dividend for the 2025 financial year to N10.00 per share.
With the qualification date set for April 24, 2026, and the closure of the register on April 27, the share price adjustment will be effected in the next trading session. Investors buying thereafter will no longer be eligible for the dividend.
What is driving the expected decline:
Market analysts note that this adjustment does not indicate a loss in company value but rather reflects the transfer of value from the company to shareholders in the form of dividends.
- Mr. Charles Fakrogha, Chief Executive Officer, ECL Asset Management Limited, said the anticipated drop is primarily technical rather than fundamental.
- “When a stock goes ex-dividend, its price is typically adjusted downward by the value of the dividend paid,” said the stockbroker.
- Based on its last closing price of N135.90, a deduction of the N8.75 final dividend suggests an adjusted price of approximately N127.15.
This aligns with standard market practice, where the Nigerian market reflects dividend payouts through price markdowns.
More insights:
Zenith Bank’s strong dividend payout is backed by solid financial performance. The bank delivered strong earnings in its 2025 full-year results, driven by growth in interest income and improved asset quality.
Zenith reported a pre-tax profit of N1.26 trillion, representing a 4.78% decline following the forbearance resolution in line with the Central Bank of Nigeria (CBN) directive to all banks to liquidate the liability linked to the COVID-19 crisis.
A closer look shows loans and advances to customers contributed the most at N1.8 trillion, up 20.15%, while treasury bills generated N1.1 trillion in income.
Despite the slight dip in per-tax profit, performance was supported by strong top-line growth, with interest income rising to N3.6 trillion from N2.7 trillion recorded in the 2024 financial year.
After income tax of N222.8 billion, post-tax profit settled at N1.04 trillion, with earnings per share falling to N25.32 from N32.87.
The bank’s consistent profitability and high dividend yield continue to position it as a favorite among income-focused investors. Its ability to sustain dividend payouts in spite of huge forbearance resolution reflects strong capital buffers and efficient balance sheet management.
Share price performance:
On the Nigerian Exchange Limited, Zenith Bank closed at N135.90 on April 24, 2026, up 1.4% from the previous session, capping a strong rally that has seen the stock gain 120% year-to-date.
- The stock has also risen 34% in the past four weeks alone, suggesting strong investor demand ahead of the dividend qualification date.
- This rally is typical, as investors often accumulate shares to qualify for dividend payouts.
- However, once the stock trades ex-dividend, short-term selling pressure may emerge, particularly from investors who bought solely for dividend capture.
- Despite this, analysts expect that underlying demand could support a gradual price recovery after the markdown.
While the expected drop to around N127.15 may appear significant, it is largely a mechanical adjustment tied to dividend distribution rather than a deterioration in fundamentals. Over the medium term, market forces—particularly demand and earnings outlook—will determine whether the stock rebounds or consolidates at new levels.
