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You might expect Nigeria’s economic hardship to negatively affect stocks, but surprisingly, certain stocks have shown resilience. If you haven’t made the best financial decisions in the last quarter, there’s still time to make smart moves before the year ends. Below are 7 Nigerian stocks that could provide long-term passive income, alongside the minimum investment amounts and data supporting their value:
1. Dangote Cement (DANGCEM)
- Minimum investment: You can start with around ₦40,000, as one share currently trades at about ₦520.
- Why it’s worth buying: Dangote Cement is a market leader in the construction industry, consistently performing well even during economic downturns. With continued urbanization and government infrastructure projects, demand for cement remains strong.
2. MTN Nigeria (MTNN)
- Minimum investment: Around ₦25,000, with a share price of about ₦320.
- Why it’s worth buying: The telecom giant benefits from increasing data and mobile service demand. MTN has reported steady revenue growth and its strong customer base ensures sustainable long-term performance, making it a solid choice for passive income.
3. Zenith Bank (ZENITHBANK)
- Minimum investment: You can start with about ₦10,000, as each share is around ₦32.
- Why it’s worth buying: Zenith Bank is a top performer in the Nigerian banking sector, consistently paying dividends to shareholders. With a strong balance sheet and good governance, it’s a reliable choice for long-term investment.
4. Guinness Nigeria (GUINNESS)
- Minimum investment: Around ₦25,000, with shares priced at ₦70.
- Why it’s worth buying: Guinness operates in the growing beverage industry, and with increasing demand for their products, it offers a good opportunity for long-term growth and regular dividend payouts.
5. Nestle Nigeria (NESTLE)
- Minimum investment: High entry point of ₦150,000, as each share is around ₦1,200.
- Why it’s worth buying: Nestle is a consumer goods giant, and its products are staples in Nigerian households. It consistently delivers solid earnings, and its strong brand presence ensures long-term stability and growth.
6. Bua Foods (BUAF)
- Minimum investment: Around ₦30,000, with shares currently priced at ₦120.
- Why it’s worth buying: Bua Foods operates in the essential food production industry, and as the demand for food continues to rise, Bua Foods has shown strong potential for long-term growth and profits.
7. FBN Holdings (FBNH)
- Minimum investment: Around ₦10,000, as shares trade around ₦12.
- Why it’s worth buying: First Bank is one of Nigeria’s oldest and most reputable banks. Its strong market presence and continuous efforts in digital banking have positioned it well for long-term success.
Data Supporting These Investments
- Dangote Cement reported a revenue increase of 12.8% in 2023, driven by strong demand for infrastructure.
- MTN Nigeria posted an impressive profit after tax of ₦223.3 billion for H1 2023, demonstrating sustained growth.
- Zenith Bank remains a top dividend-paying bank, with a 2023 interim dividend of ₦0.30 per share.
- Guinness Nigeria posted a revenue of ₦160 billion for FY 2023, a significant rise from previous years, signaling solid growth.
- Nestle Nigeria continues to be a strong performer, with consistent revenue and profitability, offering a robust dividend yield.
- Bua Foods has shown a revenue growth of 15% in its latest quarterly report, driven by increased demand in the food sector.
- FBN Holdings recorded a profit of ₦56.6 billion in H1 2023, reflecting the bank’s recovery and growth potential.
Investing in stocks requires careful timing and forward thinking. While the market fluctuates, well-chosen stocks like these can provide steady passive income over time.