Money management in equity trading and investing is very important, particularly when it comes to picking the right stock at the right time, especially now that the market is eagerly expecting the Q2 financials of banks, insurance and petroleum marketing stocks with a history of interim dividend payment.
Investment is all about expectations and returns.
Consider this simple mathematics of profitable trading/investing: Dividend history of banking stocks in Nigeria shows that Guaranty Trust Bank pays interim cash dividend of 25 kobo; United Bank for Africa, 20 kobo; Zenith Bank, 25 kobo; and Access Bank, 25 kobo; while Stanbic IBTC has over the years been inconsistent with its interim dividend payout.
Simple investment analysis for beginners is that in today’s market, while you can with the sum of N100,000 as seed capital purchase 2564 units of GTBank; the same amount would fetch you 10,000 units of UBA; or 4000 units of Zenith; and 9523 units of Access Bank.
Now, while your dividend income, excluding holding tax in Guaranty, is: N641, UBA, N2000; Zenith Bank, N1,000 and Access Bank, N2381. While you should decided for yourself which of the stocks gives you the greatest happiness, let the above analysis guide you as buy banking stocks for interim dividend in this earnings season and beyond.
