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
