…best consumer dividend stock
Guinness innovative products that are fast making an inroad into the Nigerian market has yielded fruit as the brewer recorded the fastest profit expansion among the most liquid and capitalized firms on the bourse.
And more interesting is that the company is the best consumer goods paying stocks, which means shareholders will be drinking wine from a golden goblet.
Guinness Nigeria’s net income surged 1146.78 percent to N15.65 billion in the first half of 2022.
And that compares to the bottom line (profit) growth of Total Energies (+151.06 percent); Unilever (166.75 percent); Nigerian Breweries, (+142.82 percent); Lafarge Africa, (92.18 percent); First City Monument Bank (+80.80 percent); Okomu Oil, (+76.57 percent); Dangote Sugar, (+60.58 percent);Transnational Corporation (+56.37 percent); First Bank Holdings (+48.60 percent); BUA Cement, (+48.18 percent), Sterling Bank, (+40.18 percent) Stanbic IBTC (+36.05 percent), and Presco, (+34 percent).
MoneyCentral reports that 96 percent of the NGX 30 firms recorded profit growth even amid inflationary pressures, currency devaluation, rising diesel price, and the uncertainties created by the Russia and Ukraine war.
Of course, Guinness Nigeria is the best consumer dividend paying stock as it is going to pay shareholders more for owning its stock.
It has a dividend yield of 8.65 percent, and that compares Flour Mills (7.57 percent); Unilever (3.85 percent); Cadbury (4.29 percent); Nigerian Breweries, (3.48 percent); Dangote Sugar, (6.43 percent); Nascon Allied (3.54 percent); Nestle, (4.11 percent), and BUA Food, (6.15 percent).
The brewer’s shares has gained 94.49 percent so far this year, outperforming the NGXASI index gains of 15.15 percent.
It is important to note that Guinness has the financial strength to pay dividends, settle its debt, and fund future expansion as it sits on a cash pile of N17.51 billion as at June 2021.
To magnify its share of the Nigerian beer market and a young population that craves for consumption, Guinness Nigeria adopted the total beverage alcohol (TBA) strategy, hence cannibalizing sales of competitors in that line of business.
Its portfolio products such as beers, spirits, ready-to drink Smirnoff in different variants, Orijin, Guinness FES, Guinness Smooth, Malta Guinness, Orijin, Johnnie Walker, Ciroc, amongst others have become an addiction to customers who crave for the products.
Also, the Orijin Bitters is on the shelves in local bars, and the product is so ubiquitous that it can be found in star hotels across the country.
Interestingly, the company has a total installed capacity of 5.5mhl as at half-year, 2019, according to data gathered by Afrinvest Securities Limited.