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Nigeria equities are off to a bumper start to 2024, as investors are waging that the bold reforms by the president will unlock the potentials in the economy.
However, there are concerns that rising inflation may force the central bank to cling onto its aggressive tightening campaign, which is deleterious to corporate profit.
Nonetheless, billionaires have been piling into high dividend stocks which increases their portfolio income as the market awaits earnings reports in the next two weeks. Of course, a full year financial statement gives shareholders an idea of the amount that will be distributed from distributable profit into their pockets since dividend declarations are made immediately after the results are released.
Below are the stocks with the highest returns of dividend yields.
Zenith Bank Nigeria Plc
Zenith Bank Nigeria Plc is the largest lender by profit Nigeria and it is also the first bank to be listed in the World Finance 100 2023 released by World Finance Magazine.
The bank uses its strong balance sheet and liquidity as well as efficient trade finance processes and services to continuously grow and support its customers. It continues to attract and grow its share of retail customers and retail business in the market.
For the year ended December 2022, Zenith Bank paid out N100.44 billion to shareholders, and now it has a dividend yield (DY) of 8.09 percent.
The lender has earned Buy ratings from investment houses who are sanguine. It is a growth stock with immense potential, attractive valuation, Â and a solid balance sheet to fend off macro shocks.
Guaranty Trust Holding Company Plc
Guaranty Trust Holding Company or GTCO Plc is one of the most efficient lenders whose success has been famed across the country, winning many awards.
The bank has been exploring creative ways to cut back on operating expenses and improve operating income as it has the lowest cost to income ratio among peers.
Its digital banking strategies have yielded fruit as it contributes to Group revenue.
The bank declared a N91.23 billion dividend for the year ended December 2022. It has a DY of 7.79 percent.
United Capital Plc
United Capital Plc is engaged in the business of investment banking and provides issuing house, corporate investment advisory services, project finance, debt restructuring, mergers and acquisitions, and debt capital markets activities.
The company has a dividend yield of 6.52 percent and it has a total market capitalisation of N138.05 billion.
Access Holdings Plc
Access Holding Plc is awash with liquidity that it is seeking high yielding assets and investment opportunities across the continent as it has embarked on some acquisitions to bolster earnings and deliver higher returns to shareholders.
The bank has consummated a deal to acquire Megatech Insurance Brokers Limited, as it complements its product offering in pursuit of its vision of building globally connected communities of ecosystems inspired by Africa for the world.
For the year ended December 2022, the bank paid a total dividend of N53.31 billion, and its stock yields 5.57 percent.
Custodian Investment Plc
Custodian Investment Plc is an investment holding company. It has significant interests in life and non-life insurance, pension fund administration, trusteeship and property holding companies. Its segments include Non-life business, Life business, Pension administration, Property development and management and Trustees and others.
The company has a dividend yield of 6.93 percent.
Other high yielding dividend stocks are Fidelity Bank, (5.16 percent), and Stanbic IBTC Holdings, (5.39 percent).
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