• Business - Companies
  • Updated: August 26, 2022

GTCO Emerges Best Dividend Paying Company In Nigeria

GTCO Emerges Best Dividend Paying Company In Nigeria

Segun Agbaje, Managing Director, Guaranty Trust Bank

Guaranty Trust Holding Company (GTCO) Plc is now regarded as the best dividend-paying company in Nigeria as investors get back more for each naira they invest in the equity position.

According to a statement from the bank made available to AllNews Nigeria, the lender’s stock has a dividend yield of 17.18 per cent

The statement also explained that the lender’s stock is higher than United Bank for Africa’s, (14.18%); Zenith Bank, (14%); AXA Mansard, (13.89%); United Capital, (12.61%); Total, (10.52%); Stanbic IBTC, (10.53%), and Access Bank, (8.43 per cent).

The statement reads, "Dividends provide steady income to investors and most of them perceive it as a signal of a company's financial strength, which is why there is the news of a payment that, sometimes, affects the share price.

"Of course, dividend-paying stocks are known to have weathered severe market storms as companies with strong balance sheets, steady cash flow, and attractive yields can save investors from inflation as they are expected to grow steadily.

"Stanbic IBTC and Seplat Energy have paid interim dividends so far, and it is expected that more will be rewarding their owners from distributable profit.

"It must be noted that the equity market rally since the start of the year is partly buoyed by investors’ optimism of steady dividend payment as companies have remained resilient amid a difficult business environment.

"The NGXASI has returned 13.95 per cent so far this year, but the momentum in the stock rally has slowed due to sell-offs in bellwether stocks in the last one week."


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