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5 Best High-Yield Shares on the Nigerian Stock Exchange

Updated 17 Aug 2022
5 Best High-Yield Shares on the Nigerian Stock Exchange

The 5 Best High-Yield Shares on the Nigeria Stock Exchange revealed. We have carried out extensive fundamental and technical analyses to find the best companies in Nigeria that have high-yield shares.

This is a complete guide to the 5 Best High-Yield Shares on the Nigeria Stock Exchange.

In this in-depth guide you’ll learn:

  • What is a high-yield share?
  • 5 Best High-Yield Shares on the Nigeria Stock Exchange
  • How to choose the Right Share Broker in Nigeria
  • The Best Share Brokers in Nigeria

And lots more…

So, if you’re ready to go “all in” with 5 Best High-Yield Shares on the Nigeria Stock Exchange…

Let’s dive right in…

What is a high-yield share?

High-yield stocks are those whose dividend yields are greater than the benchmark average yield. Since dividend yield and stock price appreciation are negatively connected, high-yield companies are often undervalued.

High-yield equities tend to do better in bad markets than low-yield or no-yield stocks because most investors see dividend-paying firms as being less risky.

Dividend yields are expressed as a percentage, with the dividend paid per share of stock each year divided by the value of one share of stock.

nigerian high yield stocks

5 Best High-Yield Shares on the Nigeria Stock Exchange

Guaranty Trust Holding Company Plc (GTCO) – 14.39%

Guaranty Trust Holding Company Plc is the foremost provider of financial services in Nigeria.

The business offers banking products and services to the retail, commercial, and corporate banking markets.

Numerous awards have been bestowed to GTBank in honour of its superior service, delivery, innovation, corporate social responsibility, and strong corporate governance.

With a market value of NGN 614 billion, Guaranty Trust Holding is the tenth most valuable stock on the NGX and accounts for around 2.18% of the Nigerian Stock Exchange’s equity market.

In the previous three months, Guaranty Trust Holding has been the fourth most actively traded stock on the Nigerian Stock Exchange.

Growth, Valuation, Trading Information
Share Price 20.75 NGN
Market Capitalization 613.483 billion NGN
Earnings Per Share 5.83 NGN
Price/Earnings Ratio 3.58
Dividend Yield 14.39%
Next Earnings Release September 9
Shares Outstanding 29.4 billion

Zenith Bank Plc (ZENITHBANK) – 14.12%

Zenith Bank Plc is a commercial bank located in Nigeria that caters to the banking needs of corporate, commercial, and individual clients.

After a remarkably successful initial public offering (IPO), Zenith Bank became a public limited company in June of 2004, and it was subsequently listed on the Nigerian Stock Exchange in October of the same year.

Zenith Bank Plc is currently the largest in Nigeria where tier-1 capital is concerned, and the bank has a shareholder base of around one million people.

With a market value of NGN 689 billion, Zenith Bank Plc is currently the ninth most valuable company on the NGX and accounts for around 2.45% of the equities market on the exchange. Zenith Bank’s trading volume also places it as the eight-most actively traded share.

Growth, Valuation, Trading Information
Share Price 21.70 NGN
Market Capitalization 689.153 billion NGN
Earnings Per Share 7.95 NGN
Price/Earnings Ratio 2.76
Dividend Yield 14.12%
Next Earnings Release August 11
Shares Outstanding 31.4 billion

AXA Mansard Insurance Plc (MANSARD) – 12.76%

high yield shares nigerian stock exchange

Incorporated in 1989 as a private limited liability company, AXA Mansard Insurance plc is an insurance and asset management services firm registered with the National Insurance Commission of Nigeria as a composite company.

AXA Mansard Insurance is a part of the AXA Group, a global leader in asset management and insurance with 166,000 people servicing more than 100 million customers across 64 countries.

AXA Mansard Insurance has a market value of NGN 17.6 billion, or around 0.063% of the equity market on the Nigerian Company Exchange, making it the 51st most valuable stock on the NGX currently.

Growth, Valuation, Trading Information
Share Price 1.96 NGN
Market Capitalization 17.293 billion NGN
Earnings Per Share 0.1445 NGN
Price/Earnings Ratio 21.58
Dividend Yield 12.76%
Next Earnings Release
Shares Outstanding 9 billion

Fidelity Bank Plc (FIDELITYBK) – 11.33%

Fidelity Bank Plc is a Nigerian commercial bank that is regulated by the Central Bank of Nigeria (CBN) and has international authorisation. The bank was established in 1987 as a private limited company with a Merchant Banking License.

Fidelity Bank Plc conducts its operations via a network consisting of 225 business offices, 730 automated teller machines, and 3,853 point-of-sale channels.

Fidelity Bank Plc is currently the 25th most valuable stock on the NGX, with a market valuation of NGN 89.5 billion. This represents about 0.319% of the Nigerian Stock Exchange equity market.

With a share price of 2.55 NGN at the beginning of the year, Fidelity has subsequently increased by 21.2%, placing it 31st on the NGX in terms of year-to-date performance.

Growth, Valuation, Trading Information
Share Price 3.10 NGN
Market Capitalization 89.5 billion NGN
Earnings Per Share 1.31 NGN
Price/Earnings Ratio 2.36
Dividend Yield 11.33%
Next Earnings Release September 1
Shares Outstanding 29 billion

Access Bank Plc (ACCESSCORP) – 10.99%

best nigerian high yield shares

Access Bank Plc is a multinational financial services provider serving over 30 million clients via a global network of over 600 offices and service locations in 12 countries.

As a publicly traded company, it has been on the Nigerian Stock Exchange since 1998, and the Bank has amassed over 900,000 shareholders and seen its share price increase by over 1,000% over the previous decade.

With a market value of NGN 323 billion, or around 1.15% of the Nigerian Company Exchange’s equity market, Access Holdings Plc is currently the 14th most valuable stock on the NGX.

Growth, Valuation, Trading Information
Share Price 9.05 NGN
Market Capitalization 323 billion NGN
Earnings Per Share 4.56 NGN
Price/Earnings Ratio 2.03
Dividend Yield 10.99%
Next Earnings Release September 1
Shares Outstanding 35.5 billion

How to choose the Right Share Broker in Nigeria

Traders could not have picked a more favourable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.

Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.

Commission Charges

Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.

Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.

high yield shares nigeria

Overall Reliability

There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.

That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and other regulators, or subject to additional oversight.

Account Fees

While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee. When switching brokers, your new firm could pay some or all your transfer expenses.

If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.

Annual costs, inactivity fees, trading platform subscriptions, and additional charges for research or data are all examples of the kind of expenses you should be aware of.

Pricing and Execution on Trades

Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.

However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.

This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.

Additional Tools, Educational Materials, and Features

Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.

You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.

high yield stocks nigeria

Conclusion

Overall, Nigerian investors will find a firm more appealing if its yield is greater. A high dividend yield is enticing, but investors should never ignore a stock’s fundamentals just because of the pay-out.

This is because dividend yields and share prices tend to go in opposing directions. A dividend yield could increase even though the share price of a corporation is falling.

FAQs