The much anticipated Audited Financial statements of quoted companies started hitting the the Nigerian stock market last week. Interestingly most these stocks have surprised the market by increasing their dividend pay-out as against the previous year; while some retained what they paid the previous year.
The following stocks released their audited reports last week: Zenith Bank, Dangote Cement, NASCON, Lafarge, Nestle, Dangote Sugar, NGX Group, Champion Breweries, GTCO and UBA respectively.
We expect price rally of stocks in the coming weeks as the market will compensate equities with good outings in their audited reports.
Commenting on the market performance, Mallam Garba Kurfi, MD/CEO of APT Securities and Funds Limited projected a positive outlook for the month of March. This is based on the consecutive positive returns recorded in the course of the year.
The Capital Market guru stated thus:
“For the past 3 years, that is 2019, 2020 and 2021, the month of February closed in a negative. This year is however different, January closed positive and February complemented the achievement of February by closing positive in double digit.
Therefore, with this trend, we hope that it may likely continue in the month of March. Particularly, in the coming weeks, we are expecting better returns”.
STOCKS TO WATCH
Investors can take advantage of dividend paying stocks as some of them can give dividend yield above 10%. The following stocks are worthy of note:
ZENITH BANK
Zenith Bank increased its final dividend to N2.80 from N2.70 declared the previous year. At the current price of N26.45, a position in Zenith Bank will give a dividend yield of 10.59%.
The financial institution achieved year on year growth in its topline and bottom line figures for the period under review.
The group reported Gross Earnings of N765.558 billion, up by 9.92% from N696.45 billion reported the previous year.
Profit after tax of N244.558 billion was achieved for the 12 months period, up by 6.07% from N230.565 billion profit reported in FY 2020.
Earnings per share of the Company stands at N7.79, up by 6.07% from the EPS of N7.34 reported the previous year.
The Bank is trading below its book value of N37.81, which affirms an uptrend potential for Zenith Bank.
Qualification date for the proposed dividend is March 25, 2022.
The Register of shareholders will be closed on March 28, 2022 and payment date is on April 6, 2022.
GTCO
Guaranty Trust Holding Company declared a final dividend of N2.70. At the share price of N26, a position in GTCO will give a dividend yield of 10.38%.
The Audited Financial statement of GTCO shows year on year decline in its top line and bottom line figures.
Gross Earnings of N447.81 billion was reported for the 12 months period, down by 1.63% from N455.23 billion reported the previous year.
Profit after tax of N174.84 billion was reported by the Group, down by 13.21% from N201.44 billion reported the previous year. Earnings per share dropped to N5.94 from the EPS of N6.84 achieved the previous year.
UBA
UBA declared a final dividend of 80 kobo to its shareholders. This translates to 128.57% growth in dividend payout when compared to 35 kobo final dividend declared the previous year.
In addition to the interim dividend of 20 kobo already paid, UBA altogether declared N1 dividend for 2021 financial year.
The financial Institution grew its turnover and profit after tax by 6.90% and 8.72% respectively.
Earnings per share increased year on year by 8.72% to N3.47 from the EPS of N3.19.
At the share price of N8.25, a position in UBA will give a dividend yield of 9.70%.
UBA is considered cheap as it is trading below its Book Value of N23.34.
Qualification date for the dividend is on Friday, March 18, 2022.
The Bank’s Register of Members will be closed on Monday, March 21, 2022 to enable the Registrars prepare for payment of final dividend.
On Thursday, April 7, 2022, the final dividend will be paid electronically to shareholders.
AFRICA PRUDENTIAL
Africa Prudential Plc proposed a final dividend of 50 kobo, same as what they paid the previous year.
In its recently published Audited report for FY 2021, the company reported a turnover of N3.521 billion, up by 0.37% from N3.508 billion reported the previous year.
Profit after tax of N1.415 billion was achieved for the 12 months period, down by 2.17% from N1.446 billion profit reported in FY 2020.
Earnings per share of the Company stands at N0.71, down by 2.17% from the EPS of N0.72 reported the previous year.
At the current share price of N6.80, a position in Africa Prudential will give a dividend yield of 7.35%.
Qualification date for the proposed dividend is March 11, 2022
The Register of Shareholders will be closed from March 14, 2022, to March 18, 2022.
On March 23, 2022, dividends will be paid electronically to shareholders.
DANGOTE CEMENT
Dangote Cement declared a final dividend of N20, up by 25% from the dividend of N16 declared the previous year.
The cement manufacturing giant achieved significant growth in its top line and bottom line figures for 2021 financial year.
A turnover of N1.384 trillion was reported for the 12 months period, up by 33.79% from N1.034 trillion reported the previous year.
Profit after tax grew year on year by 32.01% to N364.439 billion from N276.068 trillion achieved in year 2020.
Earnings per share of the Group increased to N21.39 from the EPS of N16.02 achieved the previous year.
Dangote Cement is currently trading at N273.50.
With increased demand for cement in the country as a result of infrastructural development by government and individual projects, Dangote Cement remains the most patronized brand in the cement industry.
Qualification date for the dividend is May 30, 2022. The Register of Shareholders will be closed on May 31, 2022.
By June 15, 2022, dividends will be paid electronically to shareholders whose names appear in the Register of Members as at May 30, 2022 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.
LAFARGE AFRICA
Lafarge Africa Plc (WAPCO) declared a final dividend of N1 in addition to the interim dividend of N1 declared in the course of 2021 financial year.
The company achieved significant growth in its top line and bottom line figures, year on year.
A turnover of N293.086 billion for the 12 months period, up by 27.11% from N230.573 billion reported the previous year.
The Company reported a profit after tax of N51 billion, up by 65.37% from N30.842 billion
Earnings per share increased year on year by 65.37% to N3.17 from the EPS of N1.91.
At the share price of N24, the P/E ratio of Lafarge Africa stands at 7.58x with earnings yield of 13.19%.
Qualification date for the dividend is on Friday, 1st April, 2022.
The Register of Members will be closed from Monday, 4th April, 2022 to Friday, 8th April, 2022 (both dates inclusive).
On the 21st day of April 2022, dividends will be paid electronically to shareholders whose names appear in the Register of Members as at 1st April, 2022.
DANGOTE SUGAR
Dangote Sugar declared N1 as final dividend to shareholders.
In the Audited Financial Statement of the Company, a turnover of N276.055 billion was reported, up by 28.82% from N214.298 billion.
Profit after tax of N22.052 billion was achieved for the 12 months period, down by 25.94% from N29.775 billion reported the previous year.
Earnings per share of the Company for the period under review dropped to N1.82 from the EPS of N2.45.
At the share price of N15.70, the P/E ratio of Dangote Sugar stands at 8.65x with earnings yield of 11.56%
The Qualification Date for the proposed dividend is on Wednesday June 1, 2022.
The Register of Shareholders will be closed on June 2nd, 2022.
Dividends will be paid electronically to shareholders 24 to 48 hours after the company’s Annual General Meeting.
ACCESS BANK
The audited report of Access Bank is expected to be good as Q1, Q2 and Q3 earnings of the bank in 2021 were consistently impressive.
The Bank increased its interim dividend pay out to 30 kobo from 25 kobo. This implies that there is tendency for them to increase their final dividend pay-out.
At the share price of N10.15, Access Bank is considered cheap as it is trading below its book value ofN22.49.
FBNH
The share price of FBNH closed at N11.25. It has gone as far N12.90 in the past 52 weeks. A position in FBNH has an uptrend potential of N12.79% relative to its year high of N12.90.
First Bank paid 45 kobo dividend for the year end 2020. There is every possibility that the Big Elephant will increase their dividend payout for 2021 financial year.
With the book value of N20.99, relative to its current share price of N11.25, FBNH is considered cheap.
OKOMU
Okomu paid N7 dividend in 2020 year end from the earnings per share of N8.16. Based on its Q4 2021 earnings per share of N14.72, the Company is likely to increase their dividend pay-out in FY 2021.
The share price of Okomu is currently N135. It has touched a year high of N142 in the past 52 weeks. There is possibility of price rally for Okomu by the time their dividend declaration is out.
Source: Outlook: Market to sustain positive trajectory in March – StocksWatch (stocksng.com)
