United Capital, Zenith Bank and Guaranty Trust Holding Company emerged as the leaders among Nigeria’s so-called ‘Dividend Kings’ as investors shift focus toward income-generating equities in a market defined by inflation, currency volatility and uneven earnings growth.
The three companies top a list of 12 NGX-listed firms that have delivered uninterrupted dividends over the past five years and are projected to offer dividend yields well above the market average in 2025, according to data compiled by investment and consultancy firm, Meristem.
United Capital leads with an average dividend yield of 13.81 percent, followed by Zenith Bank at 11.09 percent and GTCO at 10.36 percent, underscoring their appeal to investors prioritising predictable cash returns over uncertain capital gains.
Dividend-paying stocks are regaining prominence on the Nigerian Exchange as real returns on fixed-income instruments remain pressured by inflation. With equity price appreciation increasingly volatile, steady payouts are becoming a key determinant of value, particularly for pension funds, asset managers and income-focused retail investors.
Among the leaders, United Capital stands out as the highest-yielding stock on the list, even as its estimated dividend yield for 2025 moderates to 8.33 percent. The decline reflects share price appreciation rather than weakening fundamentals, as investors price in the firm’s capital-light business model and stable fee-based earnings across asset management, investment banking and trustee services.
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Zenith Bank continues to reinforce its reputation as a dividend stalwart. With an average yield of 11.09 percent and an estimated 9.10 percent for 2025, the bank remains one of the most consistent income stocks on the NGX. Strong capital buffers, conservative risk management and resilient earnings have allowed Zenith to sustain payouts despite regulatory tightening and macroeconomic headwinds.
GTCO completes the top tier, delivering an average dividend yield of 10.36 percent and an estimated 8.36 percent for 2025. The group’s diversified earnings profile and disciplined capital allocation have supported its ability to maintain dividends, even as the banking sector navigates higher funding costs and asset quality risks.
Other financial services firms reinforce the sector’s dominance of Nigeria’s dividend landscape. Access Holdings, the country’s largest bank by assets, posts an average dividend yield of 9.03 percent, with a slightly lower estimated yield of 8.72 percent for 2025. The moderation reflects the group’s need to balance shareholder returns with capital retention as it integrates acquisitions and expands its African footprint.
Mid-tier lenders are also gaining recognition for improved payout consistency. Fidelity Bank delivers an average yield of 8.36 percent, easing to 6.81 percent in 2025, while FCMB Group offers a more modest but stable profile with a 5.11 percent average yield and a 5.66 percent estimate.
Stanbic IBTC Holdings presents a contrasting pattern, with a lower historical average of 7.47 percent but a sharply higher estimated yield of 12.22 percent for 2025, suggesting expectations of stronger payouts or relative share price underperformance.
Beyond banking, non-bank financial services firm Africa Prudential features among the Dividend Kings with an average yield of 8.26 percent, declining to an estimated 6.17 percent next year. Its inclusion highlights the growing role of registrars and service-based financial firms as dependable income plays supported by recurring revenues.
Industrial and agribusiness stocks provide sectoral balance. Dangote Cement, Africa’s largest cement producer, posts an average dividend yield of 7.23 percent, with a projected 2025 yield of 5.72 percent. While lower than most financial stocks, the payout reflects the company’s scale and ability to generate cash despite rising energy costs and softer construction demand.
Lafarge Africa mirrors that trend with a 6.02 percent average yield and a 5.02 percent estimate for 2025, underscoring the cement sector’s resilience in maintaining dividends in a capital-intensive environment.
Agribusiness firms Okomu Oil Palm and Presco round out the list. Okomu’s average yield of 4.87 percent is expected to rise to 7.25 percent in 2025, while Presco’s 4.43 percent average increases to an estimated 5.14 percent, reflecting expectations of improved cash flows from palm oil operations.
The growing appeal of ‘Dividend Kings’ reflects a broader reassessment of risk and return in Nigeria’s equities market. With inflation eroding purchasing power and capital gains becoming harder to predict, dividend consistency is emerging as a critical signal of corporate strength.
Still, high yields are not without risk. Dividend sustainability depends on earnings quality, cash flow generation and balance sheet resilience. For now, United Capital, Zenith and GTCO appear to meet that test, positioning them at the forefront of a market where income, rather than exuberance, is increasingly defining value.