The stock market last week closed on a positive note, returning 1.06% week on week. Year to date, the market has returned 8.35% with the All Share Index and Market Capitalization at 55,529.21 points and N30.250 trillion respectively.
More audited results were released to the market be listed firms last week with dividend declaration. This has contributed to the current positive vibration in the market. We expect more results and corporation actions between now and the end of March 2023.
So far the following companies have declared dividend to their shareholders in the course of last week: United Capital (N1.50), Africa Prudential (N0.50), Nestle (N36.5), Lafarge Africa (N2), Dangote Cement (N20), Dangote Sugar (N1.50), Transcorp Hotel (N0.13), Seplat (2.5 Cents).
As the market anticipate more corporate actions this month, investors should start taking positions in order to take advantage of dividend yield and price appreciation.
Dividend paying stocks with impressive earnings would definitely be rewarded by the market with commensurate price growth. This is why investors should start taking position now.
Quite a number of fundamentally sound stocks can give good dividend yield and price appreciation. We are going to mention a few stocks among several others within the limited space of time.
ZENITH BANK
The market should expect the audited report of Zenith Bank by the end of March 2023.
Zenith has paid interim dividend of 30 kobo in June 2022. We expect Zenith to pay at least a final dividend of N2.80 or more for 2022 year end.
At the current share price of N26.60, Zenith is trading very close to its 52 weeks high of N27.1. Zenith Bank has the capacity to surpass its 52 weeks high of N27.1 based on the expectation that Zenith will grow its earnings in FY 2022.
Going by its Book Value of N41.68, relative to its current price of N26.60, Zenith Bank is cheap and embedded with growth potentials.
FBNH
First Bank of Nigeria Holdings is currently trading at N11.65. It has touched a high of N12.4 and a low of N8.2 in the past 52 weeks.
FBNH is trading close to its 52 weeks high of N12.4 and has the capacity to surpass it as it is trading below its fair value.
The Holding Company paid a final dividend of 35 kobo in 2021 year end. We expect increased dividend payout for 2022 year end.
With the Book Value of N24.89, relative to its current price of N11.65, FBNH is considered very cheap. A position in First Bank of Nigeria Holdings in the long term has great growth potentials.
ACCESS HOLDINGS
Access Corporation has paid an interim dividend of 20 kobo in June 2022. It paid a final dividend of 70 kobo in 2021 year end. We expect growth in the earnings of the financial institution and of course improved dividend payout for 2022 year end. It is likely to 70 kobo as final dividend.
Currently trading at N9.35, Access is trading 10.95% away from its 52 weeks high of N10.50, which implies an uptrend potential of about 11% for Access Holdings.
It has the capacity to surpass its 52 weeks high of 10.50 based on the sound fundamentals inherent in company.
With the Book Value of N29.11, Access Holdings is considered very cheap, relative to its current share price of N9.20.
UBA
UBA has paid an interim dividend of 20 kobo to shareholders. The Bank paid a final dividend of 80 kobo in 2021 year end. We expect UBA to increase its dividend payout as growth is anticipated in the 2022 financial year end.
At the share price of N8.6, UBA is trading close to its 52 weeks high of N8.75. The Bank has capacity to surpass its 52 weeks high of N8.85 as it is trading far below its fair value.
Considering its Book Value of N23.64, relative to its share price of N8.60, UBA is underpriced.
GTCO
GTCO already paid an interim dividend of 30 kobo. We expect GTCO to pay at least a final dividend of N2.70.
At the current share price of N26.50, GTCO is trading very close to its year high of N27.05. It also trading close to its book value of N29.66.
There is possibility of profit taking by investors in the coming week, thereby creating another entry opportunities.
The release of the company’s audited report for 2022 will go a long way to determine the price direction of the stock.
FIDELITY BANK
Fidelity Bank released an impressive Q4 results for 2022 year end with growth in its topline and bottom line figures.
We expect the bank to release its audited report with dividend declaration.
The Bank already paid interim dividend of 10 kobo in June 2022. A final dividend of 35 kobo was declared in 2021 year end. There is possibility that Fidelity will pay more than 35 kobo as dividend for 2022 year end.
Currently trading at N5.14, the share price of the Bank has touched a high of N6.03 and a low of N2.83 in the past 52 weeks.
It is trading 14.76% away from its 52 weeks high of N6.03, which implies an uptrend potential of about 15% for Fidelity Bank.
With the Book Value of N11.30, relative to its current price of N5.14, Fidelity Bank is considered cheap.
FCMB
FCMB came out with an impressive Q4 2022 result, recording growth in Gross Earnings and Profit after tax.
There is possibility of increased dividend payout for 2022 year end, compared to 20 kobo dividend declared in 2021.
At the share price of N4.3, FCMB has touched a high of N5 and a low of N2.92 in the past 52 weeks.
It is trading 14% away from its 52 weeks high of N5. There is up trend potential in the bank.
Going by its Book Value of N13.64, relative to its share price of N4.3, FCMB is considered cheap.
