A dividend is a share of a company’s profits paid to its shareholders. The dividend yield shows you how much a company pays out in dividends each year compared to its stock price.
Dividend is a key number for investors who want regular income from their investments. A high dividend yield can make a stock very attractive.
This article, based on a report by Business Day Newspaper, explores the top 10 stocks in Nigeria with the highest dividend yields for 2025. It looks at these companies, their performance, and the reasons behind their impressive yields.
1. UBA (United Bank for Africa)
Dividend Yield: 13.6%
UBA is at the top of the list. It is a major bank that operates across Africa. It has a presence in 20 African countries and in the UK, USA, and France. This wide network is a big reason for its success. UBA’s focus on connecting businesses across different countries has made it a top performer.
In 2024, UBA announced its highest-ever profit. It reached over N766 billion. This strong profit allowed the bank to pay a total dividend of N5 per share for the 2024 financial year. This was also a record dividend for UBA. The bank’s wide reach and focus on digital banking helped it achieve this strong performance.
The high dividend for UBA came from two key factors. First, the bank’s foreign exchange trading was very profitable. Second, the Naira’s changing value helped boost the Naira value of the bank’s foreign earnings. This showed UBA’s ability to make money from its global business.
2. GTCO (Guaranty Trust Holding Company)
Dividend Yield: 11.6%
GTCO is a leading financial services group. It is no longer just a bank. It has changed into a holding company. This means it now has many different financial businesses under one brand. This includes a bank, a pension fund, and a wealth management firm. This new structure helps it reach more customers. It also helps it make money from different areas.
In 2024, GTCO reported very strong financial results. Its profit after tax jumped by 266.8% to N539.7 billion. This excellent performance allowed GTCO to declare a final dividend of N2.75 per share. It brought its total dividend for the year to N3.10 per share. The company’s focus on digital services and strong risk management helped its growth.
GTCO’s performance was also boosted by its large foreign exchange gains. Its strong balance sheet and solid business model gave investors confidence. The high dividend payment showed that the company is stable and committed to rewarding its shareholders.
3. Fidelity Bank
Dividend Yield: 10.5%
Fidelity Bank ranks third. It is a growing commercial bank in Nigeria. The bank’s strategy has been to expand its business. It has opened more branches and has focused on retail customers and small businesses. This focus has helped the bank grow its deposits and loans.
In 2024, the bank’s profit before tax increased by a huge 210%. This made its profit reach N124 billion. This impressive growth allowed Fidelity Bank to pay a total dividend of N2.10 per share to its shareholders. The bank’s strategic expansion, especially into new markets, contributed to its strong financial position.
Fidelity Bank’s growth was also driven by a strong increase in its digital banking services. The bank’s ability to attract and keep customers through its easy-to-use platforms has been a major success factor. This helped it earn more money and pay a high dividend.
4. Zenith Bank
Dividend Yield: 10.4%
Zenith Bank is another major financial services provider in Nigeria. It has a strong history of making good profits. The bank is known for its stability and strong management. It has been a top performer in Nigeria for many years. Its solid reputation has made it a favorite for many investors.
In 2024, Zenith Bank reported a 180% increase in profit after tax. It reached N676.9 billion. This strong profitability allowed the bank to maintain a high dividend payment. It declared a final dividend of N3.50 per share. The bank has a track record of paying high dividends every year.
Zenith Bank’s strong balance sheet and wide customer base have kept it a top performer. The bank’s careful management of risks and its focus on corporate banking have been key to its success. These factors helped it make large profits and keep its place as a top dividend payer.
5. SFS REIT (SFS Real Estate Investment Trust)
Dividend Yield: 10.4%
SFS REIT is a Real Estate Investment Trust. These companies let investors earn income from real estate without owning a property directly. SFS REIT owns and manages a portfolio of high-quality properties. These properties are rented out to businesses and individuals. The rent money is used to pay dividends to shareholders.
The high yield of SFS REIT comes from the rental income collected from its portfolio of properties. REITs are legally required to distribute a large portion of their income to shareholders. SFS REIT’s ability to manage its properties well and maintain a high occupancy rate ensures a steady income stream for its investors.
SFS REIT’s focus on stable, high-quality real estate assets is what makes its dividend so reliable. Investors in REITs get a steady flow of income. This makes the company a good choice for those who want a regular cash flow.
6. United Capital
Dividend Yield: 9.2%
United Capital is a leading financial services group in Africa. It offers many different services. These include investment banking, asset management, and wealth management. The company helps both large businesses and individuals manage their money. Its business is not tied to one single area. This makes it more stable.
In 2024, United Capital reported a profit before tax of N18.96 billion. This strong performance allowed the company to pay a dividend of N1.80 per share. Their growth in various financial services areas has contributed to their ability to reward shareholders.
United Capital has a reputation for being a leader in its field. The company has invested in new technology and services. This has helped it attract new clients and grow its income. This strong performance is the reason for its high dividend yield.
7. Wema Bank
Dividend Yield: 9.1%
Wema Bank is a commercial bank. It is known for being a leader in digital banking in Nigeria. Its digital platform, ALAT, has attracted many young customers. This focus on technology has helped the bank grow its business without needing to open many new physical branches.
In 2024, the bank’s profit after tax grew by 200.7% to N35.9 billion. This growth allowed Wema Bank to pay a dividend of N0.50 per share. This was a significant dividend. The bank’s focus on technology and innovation has attracted many customers and boosted its profits.
The strong performance of Wema Bank shows that digital banking is the future. It has a strong market position. The high dividend shows that the bank is making good money and is sharing it with its investors.
8. NPF MF Bank (NPF Microfinance Bank)
Dividend Yield: 8.5%
NPF Microfinance Bank provides financial services to a special group of people. Its main customers are police officers and their families. It also serves small businesses and individuals. Its business model is very stable because it has a strong customer base.
In 2024, the bank reported a profit before tax of N2.23 billion. This allowed the bank to declare a dividend of N0.30 per share. For a microfinance bank, this is a very strong dividend yield. It shows its consistent profitability in serving its niche market.
The bank’s reputation is built on its stability and reliability. It has been a consistent performer. This has made it a favorite for investors who want a steady dividend income.
9. NAHCO (Nigerian Aviation Handling Company)
Dividend Yield: 8.5%
NAHCO is a key player in Nigeria’s aviation sector. It provides services at airports. These services include handling cargo, aircraft, and passengers. Its business is vital for all flights that come in and out of the country.
In 2024, NAHCO recorded a profit before tax of N7.73 billion. This strong performance enabled the company to declare a dividend of N2.50 per share. The company’s profits come from the growth of air travel and cargo. As more people travel and more goods are flown in and out of Nigeria, NAHCO’s business grows.
The company’s strong position in the aviation industry helps it to make good profits. This helps it to pay good dividends. Its high dividend yield shows that it is a solid company in a growing sector.
10. UPDC REIT (UPDC Real Estate Investment Trust)
Dividend Yield: 8.2%
UPDC REIT is another Real Estate Investment Trust. It lets investors get income from property. The company owns a mix of residential and commercial properties. These properties generate rental income. This income is then paid out to investors as dividends.
Similar to SFS REIT, UPDC REIT’s dividend yield comes from its consistent rental income. In 2024, UPDC REIT showed steady financial performance. It allowed the company to declare a dividend of N0.35 per unit. The trust aims to provide unitholders with regular cash distributions from its property portfolio.
UPDC REIT’s stable business model and focus on quality properties make it a good choice for investors. It gives them a way to earn from the real estate market without a lot of risk.
