Five companies that delivered over N1 trillion to investors in 2024 

While this performance is above the current inflation rate, it slightly underperformed the 45.90% YtD gain recorded in 2023, reflecting a more tempered investor sentiment.

This moderation in market activity is further evident in the reduced number of stocks achieving triple-digit YtD gains: about 35 stocks in 2024, compared to over 50 stocks in 2023.

Despite this, a handful of companies stood out, driving significant wealth creation for investors and highlighting their market dominance.

Amid this landscape, some high-value companies delivered outsized returns to their investors.

BUA Foods, Dangote Cement, Seplat Energy, Geregu, and Airtel Africa collectively added N11.6 trillion to their market capitalization, with each contributing over N1 trillion.

Notably, these companies are characterized by their high share prices, which amplify their market capitalization gains

Airtel Africa added N1.014 trillion to its market capitalization in 2024, closing the year at N8.105 trillion.

However, its 14.3% YtD share price gain was modest, slightly below the 15.41% recorded in 2023.

This can be partly attributed to tempered investor sentiment, probably due to the company’s financial performance.

The recent declaration of an interim dividend of 2.6 cents per share for the first half of the 2025 fiscal year, representing a 9% increase, highlights the company’s commitment to shareholder returns.

This move could attract income-focused investors and bolster existing shareholder confidence.

Geregu began the year with a market capitalization of N997.500 billion and closed at N2.875 trillion, reflecting an impressive 188% YtD gain. This builds on the strong performance in 2023, where the stock gained 168% YtD.

However, its dividend yield of 0.70%, based on the last annual dividend of N8, remains relatively low. Increasing the dividend could attract income-focused investors, further enhancing sentiment and potentially boosting share price performance.

Seplat Energy ranked third, adding N1.995 trillion to its market capitalization to close the year at N3.354 trillion, ranking the company as the 5th most valuable company on the NGX.

The company’s share price surged from N2,310 to N5,700, marking a 148% YtD gain, outperforming its 110% YtD gain in 2023.

The company’s share price surged from N2,310 to N5,700, marking a 148% YtD gain, outperforming its 110% YtD gain in 2023.

The share price appears to be supported by its financial performance and dividend payout policy.

Investors should monitor how the company addresses this issue, as it may affect both income stability and long-term growth prospects.

Dangote Cement secured the second spot, adding N2.708 trillion to its market capitalization and closing the year at N8.159 trillion, maintaining its position as the most valuable company on the NGX.

Its dividend policy may continue to bolster investor confidence and could sustain share price growth into 2025, with a likely dividend increase for the 2024 financial year.

Leading the pack is BUA Foods, which recorded an impressive N3.988 trillion Year-to-Date (YtD) gain in market capitalization, closing the year at N7.47 trillion.

This ranks BUA Foods as the third most valuable company on the NGX.

The company’s share price surged by 114.58% YtD, closing at N415. However, this marks moderation from the 197% YtD gain recorded in 2023.

Despite this, strong fundamentals continue to bolster investor confidence. BUA Foods demonstrated robust financial growth in the first nine months of 2024, with revenue increasing by 104% and profit before tax rising by 94%.

While the company’s high price-to-earnings ratio (35%) reflects strong investor confidence, low share price volatility and a modest dividend yield of 1.33% could limit total returns.

Enhancing its dividend payout in 2024 may help BUA Foods sustain its appeal to investors.