The audited reports of quoted firms on the floor of the Nigerian Exchange will start hitting the market in a matter days. The significance of these audited reports is that some of them will come with dividend declaration.
Companies that have declared dividend so far include: UCAP, Nigerian Breweries, MTN and Africa Prudential Plc. We expect a lot of corporation actions in the month of March as that is the deadline for release of Audited reports of Companies whose year-end is 31 December 2021.
At that, smart investors are already taking position against their expectations as regards dividend that will be declared by these companies.
For dividend loving investors, opportunities abound in this earnings season as some equities can give dividend yield above 10%.
Within the limited space of time, we would mention a few among several other dividend paying stocks investors can take advantage of.
UNITED CAPITAL
United Capital declared a dividend of N1.50. At the current share price of N14, a position in UCAP will give a dividend yield of 10.71%.
The company achieved significant growth in its top line and bottom line figures for the year ended 31 December 2021.
A turnover of N18.065 billion was reported for the 12 months period, up by 40.32% from N12.874 billion reported the previous year.
Profit after tax grew by 46.78% to N11.465 billion from N7.811 billion reported in FY 2020.
Earnings per share of United Capital increased to N1.91 from the EPS of N1.30 achieved the previous year.
Qualification date for the dividend is March 8, 2022.
The Register of Shareholders will be closed from March 9, 2022 to March 15, 2022 (both dates inclusive).
On March 23, 2022, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at March 8, 2022, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.
NIGERIAN BREWERIES
Nigerian Breweries declared a final dividend of N1.20. At the share price of N48, dividend yield of Nigerian Breweries stands at 2.5%.
The Group reported a turnover of N437.285 billion, up by 29.74% from N337.046 billion reported in 2020 financial year.
Profit after tax grew year and year by 71.98% to N12.672 billion from N7.638 billion profit reported the previous year.
Earnings per share of Nigerian Breweries increased to N1.57 from the EPS of N0.91.
Qualification date for the proposed dividend is 9th of March, 2022. The Register of Members will be closed from 10th March, 2022 to 16th March, 2022 (both dates inclusive).
On 22nd of April, 2022, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 9th of March, 2022, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.
MTN NIGERIA
MTN Nigeria Communication Plc proposed a final dividend of N8.57k. The stock is currently selling at N201. Qualification date for the proposed dividend is 6th of April, 2022. The Register of Members will be closed on 7th April, 2022.
On 28th of April, 2022, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 6th of April, 2022.
AFRICA PRUDENTIAL
Africa Prudential Plc proposed a final dividend of 50 kobo, same as what they paid the previous year.
In its recently published Audited report for FY 2021, the company reported a turnover of N3.521 billion, up by 0.37% from N3.508 billion reported the previous year.
Profit after tax of N1.415 billion was achieved for the 12 months period, down by 2.17% from N1.446 billion profit reported in FY 2020.
Earnings per share of the Company stands at N0.71, down by 2.17% from the EPS of N0.72 reported the previous year.
At the current share price of N7.35, a position in Africa Prudential will give a dividend yield of 6.80%.
ZENITH BANK
Zenith Bank has consistently over the years paid dividend to its shareholders. The bank has also consistently recorded growth in its audited reports for the past five years.
Zenith Bank is expected to pay at least N2.70 as final dividend. A position in Zenith Bank will give a dividend yield of 10.02%, relative to its current share price of N26.95.
The Bank is trading below its book value of N37.81, which affirms an uptrend potential for Zenith Bank.
OKOMU
Okomu paid N7 dividend in 2020 year end from the earnings per share of N8.16. Based on its Q4 2021 earnings per share of N14.72, the Company is likely to increase their dividend pay-out in FY 2021.
If the company decides to pay the same N7 dividend that was paid the previous year, Okomu will give a dividend yield of 5.48% relative to its current share price of N127.8.
ACCESS BANK
The audited report of Access Bank is expected to be good as Q1, Q2 and Q3 earnings of the bank in 2021 were consistently impressive.
The Bank increased its interim dividend pay out to 30 kobo from 25 kobo. This implies that there is tendency for them to increase their final dividend to about 60 kobo from 55 kobo final dividend declared the previous year.
At the share price of N10.35, Access Bank is considered cheap as it is trading below its book value of
N22.49.
FBNH
The share price of FBNH closed at N11.55. It has gone as far N12.90 in the past 52 weeks. A position in FBNH has an uptrend potential of N10.47% relative to its year high of N12.90.
First Bank paid 45 kobo dividend for the year end 2020. There is every possibility that the Big Elephant will increase their dividend payout for 2021 financial year.
With the book value of N20.99, relative to its current share price of N11.55, FBNH is considered cheap.
UBA
In 2020 financial UBA paid 35 kobo as final dividend in addition to 17 kobo interim dividend, making a total of 52 kobo as dividend payout.
In half year of 2021, UBA increased their interim dividend to 20 kobo as against 17 kobo interim that was declared the previous year. On the strength of increased payout of interim dividend, we expect UBA to improve their final dividend to at least 45 kobo.
At the current share price of N8.70, UBA is considered cheap as it is trading below its Book Value of N23.34.
DANGOTE CEMENT
The recent share buyback of Dangote Cement has moved the share price of the company to N273.5. This will translate to improved earnings per share of the company because the shares outstanding has reduced.
Dangote Cement paid N16 dividend from the EPS of N16.14 in 2020 year end. We expect them to pay at least N16 dividend or more for 2021 year end.
With increased demand for cement in the country as a result of infrastructural development by government and individual projects, Dangote Cement remains the most patronized brand in the cement industry.