As Nigerian investors continue to navigate economic headwinds and global market uncertainty, one investment strategy is standing out—dividend-paying stocks. These stocks are not only providing a cushion against market volatility but also offering attractive passive income opportunities.
This sentiment was echoed during a recent edition of the “Drinks and Mics” podcast, themed “How a Global Recession Will Impact Nigeria.” Financial experts including Ugo Obi-Chukwu (Nairametrics), Tunji Andrews (Awabah), Ola Oladele (The Money Wit Club), and Arnold Dublin-Green (Cordros Capital) recommended dividend-paying stocks as a smart strategy for wealth preservation and growth.
Backed by full-year earnings reports from several listed firms, recent analyses reveal a number of Nigerian stocks offering double-digit dividend yields—a golden opportunity for both short-term traders and long-term income-focused investors.
UBA – Leading with a 15.97% Dividend Yield
United Bank for Africa (UBA) is topping the list with a 15.97% dividend yield, based on its N31.30 share price as of April 14, 2025. The bank declared a total dividend of N5.00 per share for 2024—N3.00 as a final dividend and N2.00 as interim—representing a 26.6% payout ratio. The final payment is scheduled for April 26, 2025, to shareholders who registered by April 11.
Despite a 7.9% year-to-date decline in its share price, UBA has distributed over N185 billion in dividends over the past four years, maintaining its reputation as a reliable income stock. Its strong market liquidity—over N41.5 billion in traded value and 1.13 billion shares exchanged in the last quarter—makes it appealing for investors seeking both returns and flexibility.
GTCO – Combining Strong Dividends and Capital Gains
GTCO offers the perfect mix of income and growth. The company declared a total dividend of N8.03 per share for 2024, a 151% increase from the previous year, translating to a yield of 11.81%.
GTCO also reported post-tax profits exceeding N1 trillion, and its dividend growth rate over the past five years stands at 27% annually. In addition, the stock has gained 19% in 2025, offering capital appreciation on top of solid income.
High trading volume ensures GTCO shares remain highly liquid—ideal for investors seeking a dependable, dual-purpose investment.
Fidelity Bank – Silent Performer with 11.06% Yield
Fidelity Bank has emerged as a dividend gem, offering an 11.06% yield on a current share price of N18.20. For 2024, it announced a N2.10 dividend per share, comprising N1.25 final and N0.85 interim dividends—a massive 231% jump in payout.
With a post-tax profit of N278 billion, the bank is returning over N89 billion to shareholders, reflecting a 33% payout ratio. Despite a mild decline from its earlier N19.40 price, the stock remains attractive, especially given the potential for capital gains.
Fidelity’s high trading activity makes it suitable for both short-term “dividend trapping” and long-term portfolio building.
Zenith Bank – Stable Income with Room to Grow
Zenith Bank declared a total N5.00 per share dividend for 2024, consisting of N4.00 as a final dividend and N1.00 interim, delivering a 10% dividend yield based on its closing price as of April 14, 2025.
The payout equals N195.68 billion, yet only reflects an 18.94% payout ratio on N1.03 trillion in net profit, leaving significant headroom for future increases. With the stock up 9.89% year-to-date, and a 5-year dividend CAGR of 20%, Zenith remains a staple for income investors looking for long-term consistency.
Beyond Banking: Other Dividend Plays
While banking stocks dominate the high-yield space, other sectors are showing strong dividend potential.
Presco – Capital Gains with Modest Dividends
Presco offers a 5.35% dividend yield, which may appear modest compared to banks. However, the company’s 65.25% capital gain year-to-date makes it attractive for investors prioritizing price growth over income.
Seplat Energy – Quarterly Income Stream
Seplat Energy offers a unique proposition with its quarterly dividend structure. It has already paid out approximately N152 per share in 2024 (adjusted for forex rates) and recently announced a final dividend of 3.6 cents along with a special dividend of 3.0 cents. Both are payable to shareholders on record by May 9, 2025.
Seplat stands out for income investors seeking foreign exchange-hedged returns and regular payouts.
Access Holdings – One to Watch
Access Holdings has not yet released its full-year 2024 results, but with an interim dividend of N0.45 and an estimated annual dividend of N2.25, the projected yield at the current N20.75 share price hovers around 11%—placing it firmly in the high-yield category.
Final Thoughts: Why Dividend Stocks Matter in 2025
In a market still contending with inflation, currency fluctuations, and global recessionary fears, dividend-paying stocks provide a buffer against uncertainty. Whether you’re looking for consistent income, capital growth, or both, the Nigerian market is offering compelling options.
Stocks like UBA, GTCO, Fidelity Bank, and Zenith Bank lead the pack, while others such as Seplat and Presco offer diversification beyond the banking sector. For investors seeking smart ways to weather economic storms and grow wealth steadily, these high-dividend stocks are proving to be a reliable choice.
