Guaranty Trust Holding Company (GTCO) PLc is a lender that provides consistent dividend and stable earnings regardless of economic downturn or over all conditions of the stock market.
Also, the lender has maintained its position as the most efficient bank in Nigeria, as its management is more efficient in generating income and growing its equity financing than peer rivals.
For instance, GTCO recorded a return on average equity (ROAE) of 44.82 percent as at December 2022.
That compares with Zenith Bank, 36.57 percent; Access Bank Holdings, 36.25; United Bank for Africa PLc, 41.17 percent; FirstBank Holdings, 23 percent; Fidelity Bank, 27.10 percent; First City Monument Bank, 25.93 percent; Stanbic IBTC Holdings, 30.75 percent, Wema Bank, 32.45 percent, and Sterling Bank, 12.78 percent.
GTCO’s strong ROAE was supported by 219 expansion in profit after tax (PAT) to N539.64 billion, as management has resolved to be efficient through the year.
The lender has an annual dividend yield (DY) of 7.17 percent, a price to earnings ratio of 3.20 times.
Its low beta underscores why it is a defensive stock to be owned because it thrives during a recession.
A monster rally saw the GTCO cross the N1 trillion mark in market capitalisation, validating investors’ confidence in the lender’s growth potential.
