BUA Foods Plc continues to cement its place as one of the most defensive and cash-generating stocks on the Nigerian Exchange (NGX).

Since its listing in 2022, the food giant has accumulated about N2.7 trillion in revenue, growing at a compounded annual rate of 54%.

Profit after tax has compounded at 43%, delivering N469.44 billion over three years, while free cash flow has reached N394 billion.

The strong performance has continued to power the company’s bumper dividends. At the Annual General Meeting (AGM) held on Thursday, September 11, 2025, shareholders approved a N13 per share dividend for the 2024 financial year; a 136% jump from the N5.50 paid in 2023.

With 18 billion shares outstanding, the payout amounts to about N234 billion, translating into an 88% payout ratio.

The biggest winner, unsurprisingly, is Chairman Alhaji Abdul Samad Rabiu CFR, CON, who controls 92.64% of the company (16.67 billion shares, both directly and indirectly).

His take-home dividend is estimated at N216.75 billion, leaving just about N11 billion for the free float of 851 million shares (4.73% of the company).

Despite its fundamentals, BUA Foods is tightly held. With Rabiu owning over 92% of the company, the free float is limited, resulting in low liquidity and little volatility.

Between August 21 and September 12, 2025, the stock moved only 0.34% (N588 to N590) and has remained flat since.

Over the past three months, trading volume was 16.7 million shares in 17,705 deals, averaging just 265,000 shares per session, extremely low relative to its market capitalization of N10.6 trillion, now the most valuable company on NGX.

The stock also carries a low beta of 0.58, confirming that it moves far less than the broader market.

For retail investors, this presents a dilemma. Limited liquidity means difficulty entering or exiting positions in meaningful volume, and the absence of price swings reduces the opportunity for speculative gains.

In essence, retail investors may find themselves crowded out and may not make quick returns.

In short, BUA Foods is a Buy for dividend-seeking institutions and a Hold for retail investors.

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