Highest Dividend Paying Stocks In Nigeria - Profitable Strategies To Pick & Buy The Best Nigerian Stocks For LongTerm Investments

I hope you enjoyed the detailed analysis I shared on how to pick the best banking stocks for a better portfolio performance? As of now, that investment strategy is the longest article on my blog, so don't read it as a poem but understand how I reviewed Zenith bank's stocks with a modest estimated value that revealed a 15% upside potential from now till March 2018.

As a continuation to the discussion I had with my friends on bank's stock, another good guy asked, do you plan to invest for just price appreciation, or how can one find the best dividend paying stocks in Nigeria stock market? Well, that is was another interesting question because a lot of stock market traders don't have a clear idea of the opportunities in the market, they just want to enjoy price appreciation, and miss out on the residual income from dividend payouts to shareholders. I know a friend who had invested a huge sum into five (5) stable sectors stocks last year and is already expecting his first five (5) figure income this year, besides his portfolio is up by 27% as more institutional investors position themselves ahead of the full year audited report, 2017.

This post focuses on how we jointly picked the best highest dividend paying stocks in Nigeria stock market using a simple method I will be sharing right now:

Check the overall economic indicator - let Oil price guide you.

Anytime I look for stocks to pick, the first step I don't skip is to ascertain the general economic environment using global Oil price trend. This post on how to find the best sector stocks to invest in explains everything you need to know about the effect of oil price on Nigerian economy and opportunities in different sectors.

In summary, I said that an uptick in the price of oil helps government generate more petrodollars which reduce overall economic risk, so expect more fund to be channeled to key sectors like industrial sector as infrastructural projects are re-visited or more capital projects embarked upon, while reserve is also boosted to help cushion the effect of exchange rate.

As at when I shared this post, the banking, industrial and consumer sector have the highest share of investors' confidence, as reflected in their year to date performance. This is not unconnected to the impressive growth recorded last year (2017), following the relatively stable exchange rate and increased market participation at investors and export window. Understanding top sectors let you focus on companies that will do well from government policies driving that sector. I also share how government's planned budget for the rehabilitation and construction of roads are expected to improve cash flow of major building materials firm.

The banking sector is also expected to enjoy improved net interest income from loan and advances to oil sectors. You can read the post here

Find stocks in top sectors with highest dividend yield.

Read Full Dividend Income Investing Guide Here