Despite economic headwinds, thirty-nine of the 150 companies listed on the Nigerian Exchange declared dividends for the 2024 financial year. The total declared dividends so far amount to a payout of about N2.04 trillion to shareholders of these companies.
For many investors, dividend-yielding stocks are a key strategy for passive income. In this story, BusinessDay spotlights the companies offering the highest dividend yields in 2025. Dividend yield is a metric that assesses a stock’s income-generating potential. It represents the ratio of a company’s total declared dividend to its current share price as a percentage.
The share prices as of April 4, 2025, are the reference share prices in this analysis. Here are the top 10 stocks with the highest dividend yield in 2025:
UBA – 13.6%
Leading the pack is United Bank for Africa (UBA), which boasts the highest dividend yield among listed companies at 13.6 percent. This figure is based on a total dividend of N5 per share and a market price of N36.85 as of April 4. For the 2024 financial year, UBA paid an interim dividend of N2 per share and has declared a final dividend of N3 per share—up from a total dividend of N2.80 in 2023.
The increase in shareholder returns reflects the group’s strong earnings performance. UBA reported a net income of N766.6 billion for FY 2024, enabling a total dividend payout of N170.7 billion. This translates to a dividend payout ratio of 26.6 percent—significantly higher than the 16.3 percent recorded in the previous year.
GTCO – 11.6%
Close on the heels of UBA is another heavyweight in the banking sector—GTCO Holdings—with an impressive dividend yield of 11.6 percent. This yield is based on a total dividend of N8.03 and a share price of N69.40 as of April 4. The group announced an interim dividend of N1 per share and a final dividend of N7.03 per share for the 2024 financial year.
GTCO’s dividend trajectory reflects its strong earnings performance. In FY 2023, the group paid a total dividend of N3.70, amounting to a payout of N94.2 billion. That figure has nearly tripled in FY 2024, with a total dividend payout of N269 billion—driven by a sharp rise in net income, which surged to N1.02 trillion from N539.7 billion the previous year.
This translates to a dividend payout ratio of 26.5 percent in 2024, a notable increase from 17.5 percent in 2023.
Fidelity Bank – 10.5%
Fidelity Bank with a dividend yield of 10.5 percent, is third on the list. The bank declared a total dividend of N2.1 per share, representing an interim dividend of N0.85 per share and a final dividend of N1.25 per share. As of April 4, the stock with a share price of N19.95.
For FY 2024, Fidelity Bank will have a total dividend payout of N90 billion, representing a payout ratio of 32.4 percent from its net income of N278.1 billion. In 2023, the group paid out a total dividend of N35.2 billion, representing a payout ratio of 35.4 percent.
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Zenith Bank – 10.4%
Zenith Bank is a strong dividend contender with a yield of 10.4 percent, calculated from a total dividend of N5 per share and a share price of N47.90 as of April 4. The bank declared a final dividend of N4 per share, following an interim dividend of N1, representing a 25 percent increase from the N4 total dividend paid in FY 2023.
For FY 2024, Zenith’s total dividend payout stood at N157 billion, reflecting a payout ratio of 15.2 percent. This compares to a payout of N126 billion and a higher payout ratio of 18.6 percent in the previous year, indicating stronger earnings retention despite the increased dividend.
SFS REIT – 10.4%
SFS REIT declared a total dividend distribution of N21.5 per unit and with its share price at N206, it results in a dividend yield of 10.4 percent. After posting a net income of N477.1 million for FY 2023, SFS REIT will pay out a dividend of N430 million, representing a 90 percent payout ratio.
United Capital – 9.2%
With a share price of N15.2 as of April 4 and a total dividend of N1.4, United Capital will have a dividend yield of 9.2 percent. For H1 2024, United Capital declared an interim dividend for the first time ever, declaring an interim dividend of N0.90 per share as well as a bonus share issuance of two shares for each share held.
This was followed by a final dividend of N0.50 per share, bringing the total dividend payout for FY 2024 to N14.4 billion, and a payout ratio of 60 percent.
Wema Bank – 9.1%
Wema Bank declared a dividend of N1 per share and a share price of N11 as of April 4, resulting in a dividend yield of 9.1 percent.
For the 2024 financial year, the bank reported a profit after tax of N86.3 billion and declared a total dividend payout of N21.4 billion, translating to a payout ratio of 25 percent. This marks a significant increase from FY 2023, when the bank distributed N6.43 billion in dividends with a payout ratio of 17.9 percent.
NPF Microfinance Bank – 8.5%
Nigeria Police Force Microfinance Bank (NPF Microfinance) also ranks among the notable dividend-paying stocks, offering a competitive yield of 8.5 percent. The microlender has proposed a dividend of 15 kobo per share, based on a share price of N1.76 as of April 4.
For the 2024 financial year, the proposed dividend translates to a total payout of N898.9 million, reflecting a payout ratio of 57.1 percent, up from the N719 million distributed in 2023. With a price-to-earnings (P/E) ratio of 6.77x, NPF Microfinance appears attractively valued, especially for income-focused investors.
NAHCO – 8.5%
The Nigerian Aviation Handling Company (NAHCO) posted an 8.5 percent dividend yield as of April 4, with a share price of N69.90 and a proposed dividend of N5.94.
For the 2024 financial year, NAHCO reported a net income of N12.9 billion and declared a dividend payout of N11.6 billion, resulting in a payout ratio of 90 percent. This is a slight increase from FY 2023, when the company distributed N4.95 billion in dividends, reflecting a payout ratio of 89.4 percent.
UPDC REIT – 8.2%
Rounding out the top ten list is UPDC REIT, offering a solid dividend yield of 8.2 percent. The real estate investment trust declared a total distribution of N0.50 per share, based on a share price of N6.10 as of April 4.
For the 2024 financial year, UPDC REIT paid an interim distribution of N0.20 per share and has declared a final distribution of N0.30 per share. This marks an increase from the N0.41 per share distributed in 2023. The fund’s total distribution for FY 2024 reached N1.33 billion, reflecting a high payout ratio of 93.85 percent of its net income
