Wole Olajide, ACS
The Nigerian stock market is projected to be bullish particularly in the First Quarter of 2025 as investors anticipate release of Q4 2024 results and the eventual release of audited reports which will be backed by dividend declarations for several Companies listed on the Nigerian Exchange (NGX).
Though it closed last week on a negative note, returning -2.94% week on week. This is driven by profit taking in MTN and 56 equities. Year to date the market has returned -0.56% with the All Share Index and Market Capitalisation at 102,353.68 points and N62.851 trillion respectively.
Discerning investors are already taking positions in dividend paying stocks ahead of the release of their Corporate Actions. Investors can enjoy gains from both price appreciation and dividend yield.
To mention a few among several others, here is the list of stocks that should be on investor’s radar particularly for price appreciation and dividend yield.
ACCESS HOLDINGS
Access Holdings with the trading symbol ACCESSCORP closed last week at N24.15. In the past 52 weeks the share price of ACCESSCORP has touched a high of N30.7 and a low of N15.95.
It is trading 27.1% away from its 52 weeks high of N30.7, which implies and uptrend potential in the share price of the Company.
In Q3 2024, the company reported Gross Earnings of N3.41 trillion, up by 114.1% from N1.59 trillion reported the previous year. Profit after tax grew by 82.77% to N457.75 billion from N250.44 billion reported in Q3 2023. With the fantastic performance of Q3 2024 earnings, the FY 2024 report of the company is expected to be outstanding. With Q3 2024 earnings per share (EPS) of N12.40 relative to the current share price of N24.15, a low P/E ratio of 1.95x and earnings yield of 51.35% implies that ACCESSCORP is very attractive.
With shares outstanding of 53.3 billion units and Total Equity of N3.3 trillion, the Book Value of Access Holdings stands at N61.91. Relative to the current market price of N24.15, ACCESSCORP is grossly under-priced. This implies that there is great uptrend potential for ACCESSCORP.
The Company already paid interim dividend of 45 kobo. We expect at least, a final dividend of N1.80 (same as FY 2023) and it could be more than that. If Access retains a final dividend of N1.80, it will give a dividend yield of 7.45%.
The financial institution is the first to achieve the N500 billion recapitalisation requirement of the Central Bank of Nigeria (CBN).
ZENITH BANK
The share price of Zenith Bank closed at N46.80. In the past 52 weeks the share price of Zenith Bank has touched a high of N47.1 and a low of N29.7. It is trading close to its year high.
In Q3 2024, Zenith Bank achieved significant growth in its top line and bottom line figures year on year. Gross Earnings of N2.899 trillion was achieved for the 9 months period, up by 118.17% from N1.329 trillion reported the previous year. Profit after tax grew year on year by 90.54% to N827.28 billion from N434.17 billion reported the previous year.
With the EPS of N26.34, a low P/E ratio of 1.78x and earnings yield of 56.28% makes Zenith Bank attractive at the current price.
Zenith Bank has a book value of N111.76. Relative to its current share price of N46.80, Zenith Bank is grossly under-priced
A final dividend of N3.50 was declared for FY 2023. We expect Zenith to pay at least a final dividend of N3.50 for FY 2024 in addition to the already paid interim dividend of N1. If Zenith Bank pays a final dividend of N3.50, it will give dividend yield of 7.48%.
GUARANTY TRUST HOLDING COMPANY
GTCO closed last week at N58. The share price of the Company has touched a high of N58.75 and a low of N32.35. It is trading close to its year high.
The Company in its Q3 2024 report achieved significant growth in its revenue and profit after tax, year on year. Revenue grew year on year by 111.47% to N1.798 trillion from N850.33 billion reported the previous year.
Profit after tax in Q3 2024 grew by 195.31% to N1.085 trillion from N367.42 billion reported in q3 2023.
With Q3 2024 of N38.41, a low P/E ratio of 1.51x and earnings yield of 66.22% makes GTCO looks very attractive.
GTCO has a Book Value of N89.45. Relative to its current share price of N58, GTCO is under-priced.
GTCO paid a final dividend of N2.70 in FY 2023. An interim diWe expect GTCO to pay a final dividend of N3.0 as profit for FY 2024 is likely to improve significantly. If GTCO eventually maintains same dividend of previous year, it will give dividend yield of 4.66%.
UBA
United Bank for Africa closed last week at N33.90. In the past 52 weeks, the share price of UBA has touched a high of N37.8 and a low of N18.90. it is trading 11.50% away from its 52 weeks high of N37.80.
The Bank significantly grew its top line and bottom line figures in Q3 2024. Gross Earnings grew by 83.21% to N2.398 trillion from N1.31 trillion reported the year. Profit after tax grew by 16.92% to N525.31 billion from N449.296 trillion reported in Q3 2023.
With the earnings per share (EPS) of N17.77, a low P/E ratio of 1.91x and earnings yield of 52.42% makes UBA very attractive.
The Book Value of UBA stands at N104.84. Relative to its current share price N33.90, UBA is under-priced.
UBA declared a final dividend of N2.30 in FY 2023. An interim dividend of N2 has already being paid to shareholders. UBA is likely to declare a final dividend above the previous N2.30.
UCAP
United Capital Securities Plc closed last week at N22.50. In the last 52 weeks, the share price of UCAP has touched a high of N24.60 and a low of N11.05.
The Company reported revenue of N28.165 billion in Q3 2024, up by 60.87% from N17.51 billion reported the previous year. Profit after tax in Q3 2024 grew by 88.72% to N15.98 billion from N8.47 billion reported in Q3 2023.
UCAP paid a final dividend of N1.80 for FY 2023. An interim dividend of 90 kobo was already paid. UCAP is likely to pay a final dividend of N1.80 for FY 2024.
PRESCO
Presco Plc closed last week at N538. It is currently trading at its 52 weeks high and has touched a low of N209 in the past 52 weeks.
In Q3 2024, Presco grew its revenue by 112.95% to N128.57 billion from N60.375 billion reported in Q3 2023. Profit after tax grew year on year by 110.89% to N51.765 billion from N24.546 billion reported the previous year.
Presco declared a final dividend of N24.30 for FY 2023. The Company is likely to increase dividend pay-out for FY 2024.
OKOMU OIL
Okomu Oil Palm Company Plc closed last week at N444. It is currently trading at its 52 weeks high and has touched a low of N243 in the past one year.
In Q3 2024, Okomu grew revenue by 71.4% to N103.95 billion from N60.65 billion reported the previous year. Profit after tax grew by 35.45% to N28.34 billion from N20.92 billion reported the previous year.
Okomu declared N14 as final dividend for FY 2023. The Company has already paid an interim dividend of N2 for the period ended 30 September 2024. Okomu is likely to increase its dividend pay-out for FY 2024 above the previous N14.
WAPCO
Lafarge Africa (WAPCO) is currently trading at N70. In the past 52 weeks, the share price of WAPCO has touched a high of N76.95 and a low of N29.
Lafarge Africa grew its topline and bottom line figures significantly in Q3 2024. Revenue for the 9 months period grew by 66.02% to N479.94 billion from N289.08 billion reported in Q3 2023. Profit after tax grew by 45.78% to N57.298 billion from N39.3 billion reported the previous year.
According to the information supplied to the market, Holcim Group, the majority shareholder in Lafarge Africa has agreed to sell its holdings to Huaxin Cement. At that, Huaxin Cement will hold a combined 83.81% shareholding in Lafarge Africa Plc. This transaction is expected to close in 2025.
Huaxin Cement intends to launch a mandatory takeover offer in compliance with applicable laws and regulations. According to the notice to investing public, Lafarge Africa Plc will remain listed on NGX.
Lafarge Africa Plc paid a final dividend of N1.90 to shareholders in FY 2023, which is lower than the N2 final dividend declared in FY 2022. The Company might increase its dividend payout for FY 2024 or retain the N1.90 pay-out of the previous year.