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Nigerian stocks you can buy today and still qualify to earn dividends

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Listed entities on the Nigerian Stock Exchange “NGX” have taken active steps to make their shareholders happy and this is evident in the juicy dividends which these companies have announced so far in 2021 from the profit which they made through their operations in 2020.

Since the companies will be paying shareholders from the profit which they made last year, one would think those qualified to earn these dividends are investors who bought some ownership stakes in the company last year or those that bought the shares of the company early in 2021.These conditions are flexible enough to permit anyone who buys stakes in these companies today the 27th of April, to receive dividends payment as stated in the companies’ initial dividend disclosure.Conditions for qualifying shareholders
To qualify for this payment there are some key important rules to abide by as a qualifying shareholder.Shares of the listed company must be bought at least 3 working days before the dividend qualification date.
Shareholders must have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.Nestle Nigeria Plc (NESTLE)
The company in its guidelines revealed that only shareholders whose names appear in the Register of Members on May 21 2021, will be paid a final dividend of N35.50 per share.
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Nigerian stocks you can buy today and still qualify to earn dividends
Omokolade Ajayi by Omokolade Ajayi April 28, 2021Reading Time: 4 mins read
Attention Stockbrokers: How to use Twitter consumer sentiment to predict the Nigerian Stock Market,Nigerian stocks on Monday, March 15, 2021, closed the trading session with the Bearish note. The All-Share Index (ASI) dropped by 0.22% to settle at 38,561.84 index points almost doubling the loss of Friday last week.

Listed entities on the Nigerian Stock Exchange “NGX” have taken active steps to make their shareholders happy and this is evident in the juicy dividends which these companies have announced so far in 2021 from the profit which they made through their operations in 2020.

Since the companies will be paying shareholders from the profit which they made last year, one would think those qualified to earn these dividends are investors who bought some ownership stakes in the company last year or those that bought the shares of the company early in 2021.

READ: Nigerian stocks that outperformed Bitcoin, Ethereum and Cardano in April

Interestingly, this is not so as the conditions given by a number of these companies provide new investors with the opportunities to benefit from these dividends.

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These conditions are flexible enough to permit anyone who buys stakes in these companies today the 27th of April, to receive dividends payment as stated in the companies’ initial dividend disclosure.

READ: Why Nigerian top bank stocks are too cheap to ignore?

Conditions for qualifying shareholders
To qualify for this payment there are some key important rules to abide by as a qualifying shareholder.


Shares of the listed company must be bought at least 3 working days before the dividend qualification date.
Shareholders must have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.
READ: How well are the investments in GTBank’s subsidiaries paying off?

Nestle Nigeria Plc (NESTLE)
The company in its guidelines revealed that only shareholders whose names appear in the Register of Members on May 21 2021, will be paid a final dividend of N35.50 per share.

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Hence, to qualify for this dividend, new shareholders must purchase shares of this company not later than three working days before the 21st of May 2021.

The dividend yield of the company’s shares is put at 2.50%, as Nestle shares are valued at N1,450 per share at the open of market this morning.

By June 23, 2021, the dividends will be paid electronically to shareholders whose names were entered into the Register of Members before the deadline date.

Lafarge Africa Plc (WAPCO)
Lafarge recently announced that a final dividend of N1.00 per share will be paid to shareholders of the company whose names appear in the Register of Members as at 30th April 2021.

This means to qualify for the dividend payment, shares of the cement manufacturer must be purchased today, the 27th of April.

With the shares of Lafarge Africa Plc valued at N22.3 price on the exchange this morning, the company’s dividend yield is put at 4.48%.

The proposed dividend, if approved at the company’s Annual General Meeting will be paid on Tuesday, 25th May 2021 to the qualified shareholders.

MTN Nigeria Communication Plc
MTN has also set-out clear instructions in an announcement for investors to qualify to receive the proposed dividend payment of N5.9.

In line with the disclosure only shareholders of the company whose names appear in the Register of Members as at 4th of May 2021 will qualify to receive the dividend.

The dividend yield of the company’s shares is put at 3.58%, going with MTN’s market open price of N165 per share.

On May 26, 2021 the dividends declared by MTN will be paid to shareholders of the company whose names appear on the Register of Members as at May 4, 2021.

BUA Cement Plc (BUACEMENT)
The cement company in a recent disclosure informed the investing public that a dividend of N2.067 kobo has been proposed by the company’s board.

BUA Cement added that the dividend will be paid on July 23, 2021, to shareholders whose names appear in the Register of Members as at the close of business on July 9, 2021.

This means that to qualify for this dividend, the shares of the company must be purchased not later than three working days before the dividend qualification date.

With the N72.7 price of BUA Cement shares as of today’s open, the dividend yield of the company is put at 2.84%.

UAC of Nigeria Plc
The company in its guidelines revealed that only shareholders whose names appear in the Register of Members on June 14 2021, will be paid an ordinary dividend of 65 kobo per ordinary share; and a special dividend of 55 kobo per ordinary share, bringing the total dividend payout to N1.20 per share.

Hence, to qualify for this dividend, new shareholders must purchase shares of this company not later than three working days before the 14th of June 2021.

The dividend yield of the company’s shares is put at 10.95%, as its shares are valued at N10.95 per share at the open of market this morning.

By July 1, 2021, the dividends will be paid electronically to shareholders whose names were entered into the Register of Members before the deadline date.

What you should know
It is standard practice that companies with strong financial performance pay shareholders dividends from profits, this practice allows shareholders to reap economic gains from the companies in which they own shares.
On the dividend qualification date, the shares of these companies will be marked down on the Nigerian Stock Exchange, to reflect the total amount of dividend per share that shareholders will receive.
After the approval of the dividends at their Annual General Meetings, companies maintain the culture of paying shareholders their dividends on the next business day after the AGM.

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