Zenith bank shares have the highest dividend yield compared to other industry peers, BusinessDay calculation shows.
BusinessDay took an industry analysis on the dividend yield of the five Tier 1 banks -Zenith, United Bank For Africa (GTBank), Guarantee Trust Bank (GTBank), Access Bank and First Bank Holding) that are listed on the Nigerian stock exchange.
Key findings from the survey has shown that, of the five banks, Zenith bank has a dividend yield of 11.68 percent, this compares with UBA; 11.33 percent, Access; 8.72 percent, GTB; 7.74 percent, and FBN Holdings, 3.19 percent.
Despite the headwinds in the macroeconomic environment amidst tough operating conditions, Zenith bank has shown resilience and delivered impressive returns to shareholders,” said Gbolahan Ologunro, an equity research analyst at Lagos-based CSL Stockbrokers. “The fundamentals of the tier-one lender remain strong underpinned by its healthy asset quality, strong capital buffer and stringent risk assessment framework. These, in conjunction with its huge asset base have enabled it to consistently pay dividends to shareholders over the years”.
Furthermore, we estimate a full year 2018 DPS of N2.60, which translates to a dividend yield of 11.2 percent based on its last closing price of N23.20 as of close of trading on Friday. In our view, despite the bearish trend in the nation’s bourse, the dividend yield (11.2) percent on the stock is quite attractive, thus it presents a good opportunity for investors interested in cash flows arising from dividend payment,” said Ologunro.
