As 2023 draws to a close, savvy investors in Nigeria are eyeing promising opportunities for robust returns in 2024, focusing on stocks that offer a combination of substantial dividends and significant share price appreciation. Several key stocks have emerged as prime contenders for a successful investment strategy in the coming year.
Zenith Bank:
Zenith Bank, Nigeria’s most capitalized bank, is poised to deliver attractive returns to investors in 2024. Currently offering a dividend yield surpassing 10%, the banking giant has shown resilience and improvement in its earnings. In 9M 2023, Zenith Bank reported one of the highest pre-tax profits, reflecting a positive trajectory. With signs of share price recovery in 2023 and a substantial post-tax profit growth of 149%, Zenith Bank stands as a compelling choice for investors seeking both dividends and share price appreciation.
AXA Mansard:
Despite being a penny stock, AXA Mansard distinguishes itself with a robust dividend yield of 9.15% and a promising growth trajectory. The insurance and asset management company have consistently paid dividends over the past five years, even amid a challenging 2022. With a significant increase in Profit After Tax (PAT) by 738% in 9M 2023, AXA Mansard is well-positioned to sustain and potentially increase its dividends in 2024.
Okomu Oil:
Okomu Oil, a palm oil company, has experienced a YtD share price increase of about 46%, indicating a positive market perception. With a relatively good dividend yield of 8.54%, Okomu Oil consistently pays dividends, boasting a CAGR of 48%. The company’s strong financial performance, including a 41% growth in Profit After Tax in 2022 and a 16% Y-o-Y increase in post-tax profit in 9M 2023, suggests a promising outlook for increased dividends in the coming year.
Access Holding:
Access Holding impresses with a substantial YtD share price gain of 102.94% and a compelling dividend yield of 9.28%, making it one of the highest on the NGX. Over the past five years, dividend payments have grown by about 30% annually. The company’s financial performance is equally commendable, with a 9M EPS of N6.92 and gross earnings of N1.593 trillion, surpassing 2022 full-year gross earnings. Access Holding’s robust net cash flow further strengthens its ability to sustain dividend payments.
United Bank for Africa (UBA):
UBA stands out with an exceptional 173% YtD growth in its share price and an appealing dividend yield of 6.75%, resulting in an impressive total return of 179.77%. The bank reported the highest post-tax profit on the NGX in the first nine months of 2023, with a remarkable 287% Y-o-Y growth in Profit After Tax. With consistent dividend payments and an average annual growth rate of 5.29% over the past five years, UBA presents a promising outlook for increased dividends in 2024.
As investors gear up for 2024, these dividend stocks offer a unique blend of growth and income, positioning themselves for significant upward momentum in the Nigerian market.
