Despite the seeming associated risk, equity investment has proven to be the best performing investment window, whether in a bullish or bearish market when compared to other investment options like bonds and fixed income instruments in the money market.

Typically, stock returns are derived from capital appreciation, dividends and even bonus issues. Dividends payment have historically accounted for 20 to 40% of the average annual stock market returns.

A lesser-known fact is that reinvested dividends have accounted for between 44 to 97% of historical stock market returns.

During tough market conditions such as the down market that we are now experiencing, investors should realize that counting their losses will not prevent further losses. They should rather change their investment perception and tag along with the market as it presents itself. Investors should take advantage of the opportunity of low-priced equities to position in the market in anticipation of full year earnings of quoted companies in the first quarter of 2017, considering the present high dividend yield of stocks.

For now, there is no expectation of corporate results that will influence stock prices, but with external forces or information that can drive the nation’s stock market.

So far, liquidity level remains tight and the government has failed to look into the plight of its citizens that have lost fortunes in the market as a result of deteriorating economic situation.

The falling prices of equities on the exchange has pushed dividend yield of many stocks and some sectors up.

But given the uncertainty of corporate earnings amidst the current economic slowdown, the market is probably showing that the dividend cut which has largely been concentrated on the manufacturing sector would spread to other industries as well.

Investors should be wise as the outlook for dividend growth in general in 2024 is high, because some of the recently released earnings have revealed how many companies would be next year.

However, if you can achieve, at least, anything above 8% yield to cover the rise in inflation, you would be able to weather any short-term and long-term weakness in the market.

This does not mean that I am recommending a huge portion of your long-term portfolio in bonds, which are normally sold to retirees as a ‘safe and reliable source of income.’

You do get a fixed payment every period or so, but the purchasing power of this payment declines over time when inflation and other dynamics like time, are factored in.

Thus a very good strategy in the long run is to create a diversified portfolio of stocks, that have shown consistency in raising their dividends year after year and spot an attractive dividend yield for your consideration, in addition to capital gain.

Here, it is necessary for investors to know how the yield is computed whether based on forecast or historical dividend.

Dividend yield is calculated by dividing the latest dividend paid with the current market price of the company. Higher yield does not guarantee increase in dividend payout.

Sentiment Report for the week ended January 10, 2025

 

NGXASI buy 95% sell 5% volume index 1.47 MFI 76.69U

Abbey buy 💯 MFI 96.95U

Academy buy 💯 volume index 0.89 MFI 57.77U

Accorp buy 7% sell 93% volume index 1.41 MFI 75.23U

Afriprud buy 35% sell 65% volume index 2.29 MFI 90.33U

Aiico buy 64% sell 36% volume index 4.75 MFI 92.30U

Cadbury buy 90% sell 10% volume index 2.18 MFI 67.47U

Caverton buy 22% sell 78% volume index 1.24 MFI 61.41U

Chams buy 20% sell 80% volume index 2.83 MFI 69.86U

Cileasing buy 59% sell 41% volume index 1.84 MFI 54.53U

CHH buy 0% MFI 92.05D

Corner buy 17% sell 83% volume index 2.76 MFI 87.19U

Custodian buy 💯 volume index 1.21 MFI 88.86U

Cutix buy 43% sell 57% volume index 0.89 MFI 32.40U

CWG buy 57% sell 43% volume index 1.50 MFI 52.22D

Daar buy 59% sell 41% volume index 3.50 MFI 57.16U

Dangsugar buy 💯 volume index 0.86 MFI 61.03U

Deap buy 20% sell 80% MFI 50.15D

Ellah buy 25% sell 75% volume index 0.78 MFI 13.09D

Eti buy 💯 MFI 96.84U

Euni buy 0% MFI 98.23U

Fbnh buy 63% sell 37% volume index 1.81 MFI 43.01U

Fcmb buy 17% sell 83% MFI 70.91U

Fidelity buy 65% sell 35% MFI 87.90U

Fidson buy 💯 volume index 2.07 MFI 63.43U

Ftn buy 49% sell 51% volume index 2.27 MFI 65.31U

GTCO buy 💯 volume index 1.01 MFI 59.91U

Guinea buy 7% sell 93% volume index 4.57 MFI 75.54U

HFM buy 💯 volume index 3.95 MFI 93.07U

IEI buy 💯 volume index 1.12 MFI 72.89U

Jaiz buy 8% sell 92% volume index 0.76 MFI 65.82D

Jagold buy 53% sell 47% MFI 46.53U

Lasaco buy 4% sell 96% volume index 2.60 MFI 73.91U

Learn buy 💯 volume index 2.91 MFI 89.74U

Linkass buy 78% sell 22% volume index 5.09 MFI 95.15U

Lvstk buy 73% sell 27% volume index 1.16 MFI 77.94U

Mansard buy 9% sell 91% volume index 1.25 MFI 98.82D

M&B buy 8% sell 92% volume index 0.88 MFI 88.79U

Mcnicho buy 56% sell 44% volume index 1.19 MFI 51.98U

Mtnn buy 💯 volume index 1.37 MFI 50.97U

MLTVS buy 💯 volume index 7.19 MFI 64.90U

Nahco buy 💯 volume index 3.86 MFI 56.36D

Nascon buy 79% sell 21% volume index 7.43 MFI 75.21U

NCR buy 💯 volume index 4.84 MFI 67.80U

Neimeth buy 2% sell 98% volume index 1.77 MFI 66.68U

Nem buy 48% sell 52% volume index 1.86 MFI 89.55U

NGXGR buy 85% sell 15% MFI 87.35U

NNFM buy 0% volume index 1.36 MFI 71.19U

Oando buy 27% sell 73% MFI 46.24U

Omatek buy 53% sell 47% volume index 4.67 MFI 76.37U

Presco buy 💯 volume index 2.75 MFI 83.96U

Prestige buy 3% sell 97% volume index 3.04 MFI 96.16U

Pz buy 💯 volume index 1.14 MFI 45.79U

Red buy 💯 volume index 1.07 MFI 93.03U

Regalins buy 25% sell 75% volume index 5.08 MFI 77.49U

Royalex buy 25% sell 75% volume index 3.74 MFI 95.50U

RTB buy 24% sell 76% volume index 0.99 MFI 27.26D

Sovrenins buy 13% sell 87% volume index 5.88 MFI 95.28U

Stanbic buy 💯 MFI 49.15D

Sterling buy 9% sell 91% MFI 79.27D

Sunu buy 0% volume index 1.24 MFI 89.81D

Tantalizer buy 46% sell 54% volume index 7.89 MFI 99.12U

Tip buy 6% sell 94% MFI 82.47U

TPlc buy 73% sell 27% volume index 0.81 MFI 70.04U

Uacn buy 83% sell 17% MFI 53.05D

Uba buy 35% sell 65% MFI 75.63D

Ucap buy 23% sell 77% volume index 1.43 MFI 56.78D

Univinsure buy 45% sell 55% volume index 4.39 MFI 93.50U

UPDC buy 26% sell 74% volume index 3.01 MFI 74.52U

Upl buy 💯 MFI 86.71U

Veritas buy 23% sell 77% volume index 1.90 MFI 57.98U

Vitafoam buy 💯 volume index 1.82 MFI 59.88U

Wapco buy 0% MFI 81.66D

Wapic buy 27% sell 73% volume index 1.04 MFI 72.32U

Wema buy 44% sell 56% volume index 0.94 MFI 22.50U

Zenith buy 68% sell 32% MFI 78.80D

 

Investdata Weekly Sentiment Report