As the half-year 2024 earnings season approaches, investors and shareholders still expect interim dividends, despite the escalating losses reported by listed companies in 2023 that extended into Q1 2024 due to policy shifts and other macroeconomic headwinds.
This optimism might stem from the companies’ interim dividend payment trends and the still impressive performance by some of the listed companies in Q1 2024, which beat forecasts and are likely to surpass 2023 figures.
Data from companies surveyed by Naijaonpoint reveal that, based on their 2023 trends and performance so far this year, these companies will likely pay interim dividends for the half-year 2024.
Generating passive income from quality dividend stocks is particularly appealing when the NGX All-Share Index (NGXASI) and component stocks are in decline.
Specifically, the NGXASI has dropped by 4.61% from its Q1 2024 position to 33.39%, although this is still higher than the 6-month YtD gain of 19% recorded in 2023.
Stocks projected to pay interim dividends for the half-year ending June 30, 2024 include SEPLAT (+49.35%), PRESCO (+86.01%), OKOMU (+1.92%), ZENITHBANK (-7.12%), UBA (-14.23%), STANBIC (-25.34%), GTCO (+8.64%), ACCESSCORP (-17.93%), FIDELITYBK (-8.76%), and CUSTODIAN (+8.89%).
By investing in each of these stocks, investors can expect to earn dividend income that would counteract the declining capital gains noticed in some of these stocks.
SEPLAT is performing well this year, with a YtD gain of 49.4%, recently trading at a 52-week high of N3,450.
PRESCO: It has been a good run for PRESCO, which has seen its stock move from a 52-week low to N359 high. It has an impressive YtD gain of 86% this year and offers a dividend yield of 10%,
Custodian Investment Plc, formerly known as Custodian & Allied Insurance Plc, is also likely to pay an interim dividend.
Okomu Oil, a leading palm oil producer, has a consistent interim dividend payment history and is likely to continue this trend in 2024.
Access Holding may pay an interim dividend for the half-year 2024, despite CBN directives to banks not to pay dividends from FX gains.
Fidelity Bank paid N27.210 billion in dividends last year, consisting of a 25 kobo interim dividend and a 60 kobo final dividend, representing a modest payout ratio of 27%.
GTCO GTCO recorded a significant N457.125 billion post-tax profit in Q1 2024, much higher than the N94.2 billion dividend paid in 2023, which comprised a 50 kobo interim dividend and a N2.70 final dividend.
This strong financial performance suggests GTCO may continue its robust dividend payments in 2024.
UBA, with a high dividend yield of about 13%, paid the second-highest total dividend of N95.8 billion in 2023, following Zenith Bank’s N125.588 billion.
UBA, with a high dividend yield of about 13%, paid the second-highest total dividend of N95.8 billion in 2023, following Zenith Bank’s N125.588 billion.
Investors expect UBA to continue its 2023 dividend payment trend due to its strong financial position and high yield.
Stanbic IBTC recorded the highest payout ratio (34%) among the banks in 2023, comprising both interim and final dividends.
With its Q1 2024 profit nearing the N48 billion dividend paid in 2023, the bank is well-positioned to maintain its dividend payment history.
Zenith Bank recorded the highest post-tax profit of N676.909 billion among the banks.
Having already achieved the total dividend paid in 2023 within Q1 2024, Zenith Bank is in a strong position to sustain its dividend payment history and is likely to pay an interim dividend for the half-year 2024.