The stock market last week closed on a bearish note, occasioned by profit taking by investors, thereby shedding -1.58% week on week.
Year to date, the market has returned 7.15% with the All Share Index and Market Capitalization at 54,915.39 points and N29.916 trillion respectively.
Apart from profit taking activities, prices of some stocks were marked down for dividends, bringing their prices lower. The lower the price, the better for investors to take position.
We expect more results of dividend paying stocks this week, most especially banks that are waiting for regulatory approval. More so, they have declared their intention of paying dividend for 2022 year end.
There are quite a number of fundamentally sound stocks on NGX that investors can take advantage of. With the limited space of time, the following can be considered among several others:
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 N24.6, Zenith is trading 8.89% away from its 52 weeks high of N27.
Zenith Bank has the capacity to surpass its 52 weeks high of N27 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 N24.6, Zenith Bank is cheap and embedded with growth potentials.
FBNH
First Bank of Nigeria Holdings is currently trading at N10.70. It has touched a high of N12.4 and a low of N8.2 in the past 52 weeks.
FBNH is trading 13.71% away from 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 N10.70, FBNH is considered very cheap. A position in First Bank of Nigeria Holdings 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 N8.40, Access is trading 20% away from its 52 weeks high of N10.50, which implies an uptrend potential 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 N8.40.
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 N8.05, UBA is trading 9.55% away from its 52 weeks high of N8.9. The Bank has capacity to surpass its 52 weeks high of N8.9 as it is trading far below its fair value.
Considering its Book Value of N23.64, relative to its share price of N8.05, 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 N24.6, GTCO is trading 9.06% away from its year high of N27.05.
It also trading 17.06% away from its book value of N29.66.
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 N5.19, 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 13.93% away from its 52 weeks high of N6.03, which implies an uptrend potential of about 14% for Fidelity Bank.
With the Book Value of N11.30, relative to its current price of N5.19, 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 N4.21, FCMB has touched a high of N5 and a low of N2.92 in the past 52 weeks.
It is trading 15.58% away from its 52 weeks high of N5. There is uptrend potential in the bank.
Going by its Book Value of N13.64, relative to its share price of N4.21, FCMB is considered cheap.
Source: Cheap stocks for strategic entry on NGX – StocksWatch (stocksng.com)
