Continental Reinsurance
Continental Reinsurance has demonstrated resilience over the years, despite the weak performance of the sector as the major reinsurer in Africa has consistently improved its earnings, while equally supporting the regular payment of dividend to shareholders. The company was in ninth position on the table, with 10.91% Dividend Yield as at the close of trading February 7, 2017. The efficiency of the company’s management has reflected in its numbers, the latest of which was the third quarter EPS of 36 kobo which already double the full-year figure 19 kobo for 2015.
On the strength of the expected full year per share earnings projection of 40 kobo, the possibility of dividend increase in the range of 15 to 18 kobo is high. The current price to earnings ratio of 3.06x is attractive. As the stock RSI is reading 50 which indicate strong strength that support uptrend in price.
Aiico
As one of the old insurance companies that survived many down markets and gloomy economic cycles, on the strength of its management team and huge customer base. The company’s recent dividend payment is a function of improvement in its earnings power which also is likely to support the expected 2016 financial year numbers. The company’s profitability level in the quarterly results has improved.
On the strength of its third quarter earnings per share of 41 kobo that is also already higher than the 2015 full year EPS of 18 kobo, the possibility of dividend in the range of 8 to 10 kobo is high as the expected full year EPS is projected to be in the region of 46 kobo.
The policy of mandatory insurance cover for federal and state buildings, pensioners and others have supported the bottom line of many insurance companies.
The company’s stock is trading at a reasonable valuation with a strong profit margin. The stock trades at 1.41x earnings and with a dividend yield of 8.62%.
The stock is coming out of its oversold region, as RSI is reading 43.36.

FCMB Holding
This is a holding company that is into corporate, commercial and investment banking, as well as securities trading, with strong products driving the impressive numbers investors are seeing today.
Regardless of all the factors militating against the nation’s banks, its earnings are robust to support its share price for increased potential and dividend payment. It is true that the bank also has foreign loans running in it operation which will impact its bottom line negatively, due to increased cost of servicing the loan. It is also planning to shore up its operational capital through bond and possibly right issue to boost operations.
Its recent third quarter result released to the market is fair at 78 kobo EPS for an equity selling below N1.50 per share. This is good and a dividend of 20 t0 25 kobo is possible as the 2106 full year EPS is projected to be in the region of N1.00, while the likelihood of the bank retaining 75 to 80 kobo to reinvest in its operation is high. The equity is still attractive enough to watch for investment, whether short, medium or long term. Technically, the stock is just entering its overbought region as RSI is reading above 50. The group’s price to earnings ratio of 1.67x and dividend yield of 7.69% are good and attractive.
NEM
This company is unique in its industry as a result of its consistency in delivering value to investors in the form of dividend payment and business model that had supported its earnings in all these down markets.
On the strength of its third quarter earnings report of the company in its sub-sector, it has ranked third in gross premium and profitability. Its earnings on quarterly and yearly bases have been undulating to support its dividend payout for the years. This stock is trading at 3.86x earnings with a dividend yield of 7.41%. This is good and attractive for income investors that want regular flow into their account from investment.
The possibility of dividend in 2017 is high, but investors should expect same dividend for 2016. For trading, the stock is attractive with good up potential after the prevailing situation that had depressed the market.
Eterna Oil
This is the only penny stock in the oil and gas sector that had recently recorded improved numbers posted and supported share price after paying its first dividend in the last 10 years. The company is into petroleum products marketing and distribution, besides being into lubricant production.
The hike in pump price of Premium Motor Spirit (PMS) has impacted the company’s bottom line positively. The company is gradually repositioning its operation in the downstream oil marketing sector in the face of the rise in crude oil prices in the international market, looking up to rub on oil stocks. Eterna stock has a potential to rally on the strength of its strong earnings and the resumed of dividend payment after many years.
Investors should look the way of this stock now. With a third quarter EPS of N1.29 and full year forecast of N1.50, dividend possibility of 40 kobo is high. The stock trades at 2.78x earnings with a dividend yield of 6.98%. For the technical position of the stock see the “Investing with numbers table.”