The stock market last week closed on a bearish note, returning 0.96% week on week. This is occasioned by profit taking in Airtel, Fidelity, FCMB and 24 other equities.
Year to date, the market has returned 4.98% with the All Share Index and Market Capitalization at 53,804.46 points and 29.310 trillion respectively.
The audited reports of Companies particularly banks that opted not to release Q4 will start hitting the market in a couple of days. Other companies that have already released their Q4 earnings will publish their Audited reports with probable dividend declaration by the end of March.
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. To mention a few, the following stocks can be considered for strategic positioning.
Zenith Bank is currently trading at N25 and has touched a high of N27.2 and a low of N18.90 in the past 52 weeks.
It is trading 8.09% away from its 52 weeks high of N27.2. Zenith Bank has the capacity to surpass its 52 weeks high of N27.2 based on the expectation that Zenith will grow its earnings in FY 2022.
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.
Going by its Book Value of N41.68, relative to its current price of N25, Zenith Bank is cheap and embedded with growth potentials.
The share price of GTCO is currently trading at N25.15 and it has touched a high of N27 and a low of N16.80 in the last 52 weeks.
It is trading 6.85% away from its year high of N28.05, which implies an uptrend potential of about 10% for GTCO.
The Book Value of N29.66, relative to the current price of N25.15 implies that GTCO is cheap.
GTCO already paid an interim dividend of 30 kobo. We expect GTCO to pay at least a final dividend of at least N2.70.
Currently trading at N181.2, the share price of Okomu has a year high of N216.9 and year low of N135.
There is an uptrend potential of 16.51% in the share price of Okomu Oil, relative to its 52 weeks high of N216.9.
Okomu has already paid two different interim dividends of N7 and N2 in June and September 2022 respectively.
Cumulatively, N9 has been paid as interim dividend to shareholders. Based on their improved Q4 2022 earnings, Okomu should be able to comfortably pay a final dividend of N8 or even more.
Currently trading at N150.8, the share price of Presco has a year high of N200 and year low of N102.
There is an uptrend potential of 24.6% in the share price of Presco, relative to its 52 weeks high of N200.
Presco already paid an interim dividend of N2. The Group is likely to increase its dividend payout or pay N6.60 it paid last year.
Currently trading at N4.76, Fidelity Bank has a year high of N6.03 and a low of N2.83.
It is trading 21.06% away from its 52 weeks high of N6.03, which implies an uptrend potential of about 21% in price appreciation for Fidelity Bank.
Fidelity Bank paid final of 35 kobo dividend the previous year. With already paid interim dividend of 10 kobo in June 2022, we expect an increase in dividend payout by the financial organization.
With the Book Value of N11.30, relative to its current price of N4.76, Fidelity Bank is considered cheap.
Currently trading at N4.28, FCMB has touched a high of N5 and a low of N2.92 in the past 52 weeks.
It is trading 14.4% away from its 52 weeks high of N5, which implies that the equity has an uptrend potential of about 14%.
FCMB paid a final dividend of 20 kobo last year. We expect FCMB to increase its dividend payout for 2022 year end.
With the Book Value of N13.64, relative to its current share price of N4.28, FCMB is considered cheap.
Access Holdings is currently trading at the share price of N9.20. In the past 52 weeks, the stock has touched a high of N10.50 and a low of N7.50.
It is trading 12.38% away from its 52 weeks high of N10.50, which implies an uptrend potential of 14% for Access Holdings.
It has the capacity to surpass its 52 weeks high of 10.50 based on the sound fundamentals inherent in company.
We expect growth in the earnings of Access Holdings and of course improved dividend payout for 2022 year end.
It has paid an interim dividend of 20 kobo in June 2022. It paid a final dividend of 70 kobo in 2021 year end.
With the Book Value of N29.11, Access Holdings is considered very cheap, relative to its current share price of N9.20.
UBA is currently trading at N8.35 with a 52 weeks high of N8.85 and a low of N6.55.
It is trading close to its 52 weeks high of N8.85 by 5.65%. UBA has capacity to surpass its 52 weeks high of N8.85 as it is trading far below its fair value.
The price of UBA is capable rising if their Q4 earnings is impressive with probable increase in dividend payout.
Considering its Book Value of N23.64, relative to its share price of N8.35, UBA is underpriced.
First Bank of Nigeria Holdings is currently trading at N11.65 with 52 weeks high of N12.4 and a low of N8.2.
It is trading to closer to its 52 weeks high of 12.4 and has the capacity to surpass it, should their Q4 result be impressive with increased dividend payout.
With the book value of N24.89, relative to its current share price of N11.65, FBNH is considered very cheap.
Source: Investment opportunities in dividend paying stocks – StocksWatch (stocksng.com)