DO YOU INVEST FOR DIVIDEND? BE CAREFUL WITH 89 NIGERIAN COMPANIES

Do you buy and sell shares of quoted companies solely because of potential dividend income? 


If yes, then be careful while considering 89 companies quoted on the Nigerian stock exchange that have not paid dividend since 2015, as at Friday, April 21 2017.

Of this number, it is possible that 18 of them that last declared and paid dividend in 2015 could be excused because many companies are yet to get approvals from external auditors and relevant regulatory bodies overseeing for 2016 annual report.

However, of the 89, a total of 71 companies have not declared or paid dividend since 2014, according to information from official list of the Nigerian stock exchange as at yesterday, Friday April 21.

The list of 89 includes 15 from amongst insurance; 6 banks; 6 emerging market equities; five each from paints manufacturers; and food processing.

Others include four each from computer solutions and savings and loans and three each from healthcare and printing and publishing.

A total of seven have not declared dividend for about two decades now or even more.

Top of this list is Champion Breweries PLC which last paid dividend or went ex-dividend onAugust 19, 1986, that is 31 years ago.

Anino International, an ASEM listed equity, also features prominently because it went ex-dividend last on July 28, 1992, some 25 years ago.

Much the same way, July PLC also on emerging market went ex-dividend last on September 21, 1996, about 21 years ago.

Fourth on this list of seven is Thomas Wyatt thar went ex-dividend last on October 7, 1996 followed by Golden Guinea Breweries PLC that went ex-dividend last May 25, 1997.

According to the official list, Arbico and Interlinked Technologies also fall into the two decades category. Arbico last went ex-dividend last on September 18, 1998 while Interlinked Technologies was on February 2, 1999.

Of the 89, another set of 30 were marked ex-dividend last about 8 years ago or more.


Prominent on this list are two banks: Union Bank that last went ex-dividend on November 17, 2008 and Wema bank ex-dividend last on September 29 2004, according to the April 21 official list.

Also included are 9 insurance companies with stated dates they last went ex-dividend: Equity Assurance (17/6/2008); International Energy Insurance (18/9/2009); LASACO insurance (3/7/2009); Linkage Assurance (28/2/2005); Mutual Benefits Assurance (16/6/2008); Standard Trust Insurance (20/7/2009); UNIC Holdings (25/8/2008) and Standard Alliance (23/9/2009).

Three savings and loans equities also feature here: Aso savings and loans (12/10/2009); Resort Savings and Loans (5/8/2010) and Union Homes and Savings (25/8/2008).

Also in this category are two ASEM companies: Afrik Pharmaceutical and Capital Oil and many other companies quoted on the main board: John Holt; Dunlop; Union Dicon salt; UTC; Deap Capital Management and trust; Eko Corp and Union Diagnostic and clinical PLC.

Others are Nigerian German Chemical PLC; African paints; Paints and Coatings manufacturers; Meyer PLC; Premier paints; Multiverse Mining and exploration; Become petroleum; Ikeja Hotel and Secure Electronic PLC.

Yet there is also another group: Those who have not gone ex-dividend for more than 2 years.

There are about 14 of such companies and the list includes Neimeth International Pharmaceutical; NCR Nigeria; Portland paints and products; Ja Paul oil & Maritime; Oando PLC; Afromedia PLC; R T Briscoe; and Tantalizers PLC.

Others include Learn Africa PLC; Chellarams; Roads Nigeria; Skye Shelter Fund; Union Homes REIT; UPDC REIT; Ecobank; Skye Bank; Unity Bank; Law Union & Rock Insurance; Sovereign Trust insurance; Abbey Mortgage; Royal Exchange PLC and SIM Capital Alliance.

In all 11 companies had no relevant information with which to group them: two in ASEM and 9 in the main board. 

All three premium equities went ex-dividend at least last year.

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