5 blue chip Nigerian stocks with the best annual returns
Blue-chip Nigerian stocks, also known as NSE 30 stocks, are primarily known to be the most capitalized stocks in the Nigerian stock market.
NSE 30 stocks are preferred by many traditional and institutional investors, primarily for their systematic importance in Africa’s largest economy, low volatility, and more consistent return on investment compared to small to mid cap stocks.
These stocks represent over 70% of the total valuation of stocks in the world’s top performing 2020 stock market. Investors often increase their buying pressure on them largely because they produce reliable profits and are often known to pay regular dividends.
Notably, the dividend yield of the NSE30 index at the end of May 2021 was around 6.30%.
Stock market experts reveal that the movement of the prices of these stocks mostly influences the rises or falls in market performance, depending on investor sentiment.
The elite roster at the time of this report’s filing has collectively posted annual gains of around 46%, as investors more often depend on it to survive economic downturns and operate profitably. It is no surprise why many of them have a record of stable and reliable growth.
Here’s a look at the top five performing NSE 30 stocks so far in the year.
Lafarge Afrique SA (WAPCO)
The cement conglomerate defied market expectations amid head winds in the Nigerian real estate sector, posting strong growth in its recurring profit before interest and taxes in 2020, which rose 30.8% from bottom line of the previous year.
Most recently, shareholders of the blue-chip cement brand congratulated the company on its 100 kobo dividend in an era of tough and tough economic macros.
The company led by Khaled El Dokani shows annual gains of 87% as the company affirmed its commitment to deliver superior value to stakeholders through innovation and continuous improvement.
First bank of monuments in the city
The bank is showing an 80% annual return to its shareholders with recent price trends showing no signs of slowing its bullish momentum amid a recent report that found the company unanimously approved the payment of ” a dividend of 2.97 billion naira, resulting in 15 kobo per common share for 2020.
Nigeria’s fast-growing Tier 2 bank revealed in its latest earnings call that it remains resolute in the face of the challenges posed by the resurgence of the COVID-19 pandemic. The most recent financial results also confirmed customer confidence in the financial strength led by Ladi Balogun.
Also just recently, Oikocredit, a Netherlands-based cooperative, recently invested around $ 10 million of debt in the bank, further affirming the bank’s systemic role in providing credit to unbanked small and medium-sized businesses in the region. Africa’s largest economy.
The company has seen impressive growth in recent months, posting improved sales and earnings in the first quarter of 2021 despite strong economic winds. The cement plant shows an annual gain of around 69%.
Institutional investors take hold of the highly capitalized stock as market commentators predict the company’s total cement production capacity will reach 20 million metric tons per year upon completion of its Sokoto cement plant and 3 additional lines with a total capacity of 9 million metric tons in Edo, Adamawa. and the states of Sokoto, in three years.
Guinness Nigeria Plc
Major brewery stock over the past month has seen immense buying pressure as it rebounds in beneficiary territory after two-quarters of losses in its current fiscal year ending June 2021.
The company has an annual return of 66%, with recent price trends giving way to other advantages. Guinness Nigeria’s turnover is up for the first time in 3 years.
In addition, the action is fully boosted by the revaluation of the long-term and short-term issuer ratings of the NSE30 stock by GCR Ratings to AA- (NG) and A1 + (NG) respectively, with the outlook being viewed as stable, supported by its robust cash flow.
Dangote Cement Plc
Nigeria’s most valuable stock by market value has affirmed its huge footprint on Nigeria’s manufacturing sector by recently approving N272.6 billion as a dividend, or N16 per share for the year 2020, to its shareholders.
A significant number of investors have held firm to the title to achieve revenue growth of trillion naira amid the economic challenges facing the $ 514 billion giant. Its chairman, Aliko Dangote, Africa’s richest man, reinforced the company’s commitment to maximizing shareholder value.
The cement giant has an annual yield of 65.5%.
Please note that these are opinions and should not be construed as investment recommendations or financial advice by Nairametrics. Please consult your financial advisor for professional advice.