Dividend-paying stocks remain a cornerstone for investors looking for stable returns, and the Nigerian Stock Exchange offers several attractive options. With rising interest in income-generating investments amidst economic challenges, identifying reliable dividend stocks is essential. Here’s a roundup of some of the top dividend-paying Nigerian stocks to watch in 2025, based on accurate data from recent performance metrics.
1. United Bank for Africa Plc (UBA)
- Sector: Finance
- Dividend Yield: 12.64%
- Annual Dividend Per Share: NGN 2.80
- Price: NGN 33.95
- Analysis: As one of Nigeria’s leading financial institutions, UBA offers an attractive dividend yield supported by strong earnings and consistent performance in a competitive market.
2. Zenith Bank Plc (ZENITHBANK)
- Sector: Finance
- Dividend Yield: 9.56%
- Annual Dividend Per Share: NGN 3.99
- Price: NGN 46.95
- Analysis: Zenith Bank’s robust balance sheet and high profitability ratios make it a standout choice for dividend-focused investors.
3. Access Holdings Plc (ACCESSCORP)
- Sector: Finance
- Dividend Yield: 9.16%
- Annual Dividend Per Share: NGN 2.10
- Price: NGN 24.55
- Analysis: With a growing digital footprint and expanding customer base, Access Holdings offers both growth and reliable dividend income.
4. Union Homes Real Estate Investment Trust (UNIONHOMES)
- Sector: Finance
- Dividend Yield: 8.61%
- Annual Dividend Per Share: NGN 3.15
- Price: NGN 36.60
- Analysis: Union Homes REIT is a top pick in the real estate investment trust sector, offering stable income and attractive returns for dividend seekers.
5. Fidelity Bank Plc (FIDELITYBK)
- Sector: Finance
- Dividend Yield: 8.31%
- Annual Dividend Per Share: NGN 0.83
- Price: NGN 17.50
- Analysis: Fidelity Bank’s focus on retail and SME banking ensures consistent performance and a commitment to rewarding shareholders with competitive dividends.
6. SFS Real Estate Investment Trust (SFSREIT)
- Sector: Finance
- Dividend Yield: 8.08%
- Annual Dividend Per Share: NGN 14.50
- Price: NGN 179.45
- Analysis: SFS REIT provides a compelling option for investors looking to diversify into real estate-backed securities with steady returns.
7. Dangote Cement Plc (DANGCEM)
- Sector: Non-Energy Minerals
- Dividend Yield: 7.73%
- Annual Dividend Per Share: NGN 30.00
- Price: NGN 400.00
- Analysis: As a leader in Nigeria’s construction industry, Dangote Cement’s high dividend payouts and growth prospects make it a reliable choice for income investors.
8. UPDC Real Estate Investment Trust (UPDCREIT)
- Sector: Finance
- Dividend Yield: 7.71%
- Annual Dividend Per Share: NGN 0.41
- Price: NGN 5.80
- Analysis: UPDC REIT’s focus on delivering consistent returns from real estate investments provides stability for income-focused portfolios.
Economic Context for Dividend Investing
Nigeria’s economic backdrop provides a mixed environment for dividend investing. Key indicators include:
- Inflation: As of December 2024, inflation hit 34.8%, pressuring consumer purchasing power. Companies with strong pricing power and resilient demand, like Dangote Cement and financial sector players, are better positioned to navigate these challenges.
- GDP Growth: Projected GDP growth of 10% for Q3 2024 underscores a recovery trend, offering optimism for sectors such as construction and finance.
- Exchange Rate Volatility: Naira depreciation increases the attractiveness of companies with robust financial management and dollar-denominated revenue streams.
Investment Strategies for 2025
1. Dividend Reinvestment Plans (DRIPs)
Reinvesting dividends to purchase additional shares can compound returns, maximizing the benefits of high-yield stocks like Zenith Bank and Dangote Cement.
2. Sector Diversification
Building a portfolio across sectors like real estate, finance, and construction reduces exposure to sector-specific risks.
3. Monitoring Dividend Sustainability
Focus on payout ratios and cash flow trends to ensure companies can sustain or grow their dividends. Stocks like UBA and SFS REIT demonstrate strong dividend policies backed by robust financial metrics.
4. Leveraging Fixed-Income Alternatives
For conservative investors, blending dividend stocks with high-yield Nigerian Treasury bills (yielding up to 18%) can provide a balanced approach to income generation.
Conclusion
Investing in dividend-paying stocks offers a strategic way to achieve stable income and growth. In 2025, top-performing companies like UBA, Zenith Bank, SFS REIT, and Dangote Cement are well-positioned to deliver strong dividends supported by solid financials and sector dynamics. Combining these equities with sound investment strategies ensures that investors can navigate Nigeria’s dynamic economic landscape while enjoying consistent returns.
