Nigeria’s stock market continued to impress investors in 2025, with a remarkable surge of over 51% year-to-date (YtD). Among the standouts were twenty-two SWOOT companies—stocks worth over one trillion naira—which recorded an average share price gain of 69% YtD. Notable performers included Presco, MTN Nigeria, International Breweries, Okomu Oil, Nigerian Breweries, and Nestlé, many of which achieved triple-digit share price growth.
While these capital gains are impressive, they remain unrealized until investors sell their shares. For those seeking more immediate returns, dividends provide a reliable alternative. Dividend income represents a portion of a company’s profits shared with shareholders, offering steady cash flow without the need to sell holdings. In contrast, capital gains depend on market timing and can be less predictable.
Several SWOOT companies are recognized for their consistent dividend payouts. While companies such as Dangote Cement and BUA Foods distribute only final dividends, banks, Seplat, Okomu, and Presco offer interim and final dividends. Seplat, in particular, pays quarterly, while Okomu and Presco have already disbursed two interim dividends and are expected to announce final payouts based on 2025 full-year results. Investors closely watch dividend yield—the return per naira invested—alongside dividend size, growth, and sustainability. A higher yield signals more cash earned for each naira invested.
For January 2026, several dividend stocks stand out. Seplat Energy remains a top pick with a 4.63% dividend yield. The company has maintained an average payout ratio of 49% over the last five years and grown dividends by 68% annually. In 2024, Seplat paid N263.27 per share across four quarters, including N158 billion in special dividends. For 2025, three quarterly dividends totaling N251.85 per share have already been paid, with Q4 estimated at N80 per share.
With management targeting $1 billion in cumulative dividends by 2030, Seplat is positioned for sustained income growth. Based on projected payouts, Seplat’s total 2025 dividends would deliver a yield exceeding 5%, making it a compelling choice for investors seeking high-income stocks. This January, alongside Seplat, dividend-focused investors may also consider top banks and other reliable SWOOT companies for stable, long-term returns.
source: nairametrics