October 19, 2022/InvestmentOne Update

What if the stocks you purchase now could return above 10 percent in dividends by Q1 2023? Interesting right? But first, a quick recap of the year so far.

The global economy has, for the better part of the year, experienced severe setbacks ranging from geo-political tensions, supply chain bottlenecks, skyrocketing energy and commodity prices resulting to heightened inflationary pressures, and ultimately, cost of living.

Similarly, the domestic economy has not been spared this onslaught with inflation printing at 20.77% in September 2022 (the highest since the NBS data series in 2009). Consequently, in a bid to rein in inflationary pressures, the CBN (like most Central Banks globally) has reacted by increasing policy rates.

Further buoyed by uncertainties surrounding the imminent elections and exchange rate woes, investors responded to the uptick in Fixed Income rates by rotating funds out of stock market or remaining on the side lines entirely.

Which Way Equities?
In our opinion, these sell pressures present decent entry price points for most fundamental names on the NGX especially for discerning investors with a long-term outlook. Specifically speaking from a dividend standpoint, opportunities abound with some stocks possessing double-digit dividend yields as high as 15%.

The table below shows stocks under our coverage with the highest dividend yields and upside.