The Guardian
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Nestle tops seven attractive dividend-paying firms




Notwithstanding the negative effects of the protracted Bearish market, which has eroded the prices of equities, some firms in Nigerian stock market have declared impressive dividends, which have gone to confirm what experts, including the Chief Executive Officer, the Nigerian Stock Exchange (NSE), Oscar N. Onyema, have been saying that the fall in the prices of shares in the market has nothing to do with the companies’ fundamentals but has been due to the dynamic economic trends and investor demands for stocks.

While explaining the cause of the persistent fall in the prices of equities in the market, Onyema, at a forum organized by the Capital Market Correspondents (CAMCAM) late last year, said that though there has been no respite in the macro economy and operating environment due to lingering oil price and foreign exchange pressures, the long-term outlook for the Nigerian equities market remains positive as listed companies continue to show resilience, even as the quoted firms’ operators have been innovating to reposition the firms to deliver superior value to investors.

He assured potential investors that opportunities still exist in stocks, in spite of the current downturn in the capital market.

He declared: “If you look at large, mid and small cap securities; mid cap securities have done well, they have returned about 6 per cent positive.

“Now the whole market is about 18 per cent down and that is because of the weight of the large cap securities. So it is important for investors to dig deeper and understand the dynamics of the market with the help of professionals.”

According to him, investors also need to understand that there have been significant sell-offs that could present opportunity, stressing that it is important to do the analysis and understand where those opportunities are; not only in the equity side but across the various asset classes.

“We always advise investors to diversify their portfolios across different assets classes to mitigate risks. In the short term, you will see the huge volatility but that should not distract from those fundamental elements about good companies, making good money,” he said.

The Guardian’s investigation has revealed that, of the 41 firms that have declared their results for 2015 trading year, Nestle Nigeria Plc tops the seven high dividend-paying firms in the Nigerian stock market. The company declared a dividend of 1900 Kobo per ordinary share of 50 Kobo.

Total Oil Nigeria Plc followed with 1200 Kobo per ordinary share of 50 Kobo. Dangote Cement Plc maintained third position with a dividend of 800 Kobo per ordinary share of 50 Kobo.

Mobil Oil Plc came fourth with 720 Kobo per share of 50 Kobo. Nigeria Breweries Plc, which occupied fifth position declared 360 Kobo per ordinary share of 50 Kobo. Forte Oil Plc, followed with a dividend of 345 Kobo per ordinary share of 50 Kobo, while Lafarge Africa Plc occupied the seventh position with a dividend of 300 Kobo per ordinary share of 50 Kobo and also issued bonus share of one for every ten old shares held.

In the banking sector, GTB Plc tops the list with a dividend of 177 Kobo per ordinary share of 50 Kobo. Zenith Plc followed with dividend payment of 155 Kobo per ordinary share of 50 Kobo.

Following this development, the prices of the share of Nestle Plc remains high as the shareholders hold on to them tenaciously in anticipation of more dividends in the years ahead. Nestlé’s share as at Monday, April 25, sold for 620 Kobo per ordinary share of 50 Kobo. Dangote Cement was 161.04 Kobo per share of 50 Kobo. Forte Oil 275.12 Kobo, Mobil Oil, 155 Kobo. Nigerian Breweries Plc, 105.7 Kobo while Total Oil was 147 Kobo per ordinary share of 50 Kobo.

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