₦airaland Forum

Itzlinda:
The jingles have indeed started in social media.. I see the top happening around December.

I see some Hausa content creators teaching people how to buy stock with 2000 naira

The new era Ololos are already in the Nigerian bourse!

emmanuelewumi:
The only one I can remember of are Dunlop and Oando

I am always lucky to bailout before katakata .
burst. I bailed out before Intercontinental bank, Oceanic bank, Wema Bank, Mutual Benefits Assurance, Union Bank, Skye Bank, Afribank had issues. I sold everything.
I drastically reduced my holdings in First Bank before they had issues

I bailed out of Oando at between N20 and N24 about 12 years ago and never looked back.


It is a fact that a business can't go under overnight, it must have been giving the signs about 2 years ago

What were the signs that made you to sell your holdings in these companies?

Princkez:
+1
Dangote's encounter with Arch Bishop Benson Idahosa 2025
The encounter between Aliko Dangote and Archbishop Benson Idahosa is a well-known story in Nigeria, particularly within Pentecostal Christian circles. It is often cited as a pivotal moment in Dangote's life that propelled him towards his current status as Africa's richest man.
The story, recounted in various ways, generally involves Idahosa, a prominent Pentecostal preacher, needing a seat on a fully booked flight from Benin City to Lagos. Dangote, then a young businessman, reportedly gave up his seat to allow Idahosa and his guest to travel. In return, Idahosa is said to have prophesied that the world would make way for Dangote, and that his business would expand beyond Africa.
While the specific details of the encounter vary slightly across different accounts, the core narrative remains consistent: Dangote's act of generosity towards Idahosa was met with a powerful prophetic blessing that is believed to have played a significant role in his subsequent success. Some versions of the story also highlight Dangote's respectful attitude towards Idahosa, even though Dangote is a Muslim.
Some accounts also mention Dangote supplying cement for free when building one of the largest churches in Nigeria, further emphasizing his connection to Idahosa and his ministry.

What is the name of the church that Dangote supplied cement to free of charge ?

emmanuelewumi:
The market giveth, the market taketh glory be to the name of the stock market.

If one is not careful a portfolio of N500 million filled with junk stocks can turn to N50 million.

Reason why financial institutions don't accept some stocks as collateral security

I think it is because junk stocks lack cash flow in form of yearly dividends.

austinkenneth:
They question then becomes whether they can stomach these losses without going into panic mode.

I think they are capable!

Since they have the mentality that you have not made a loss until you have sold.

emmanuelewumi:
Experience is the best teacher. Smart people learn from other people's experience, average people will want to have a personal experience

They will learn the hard way, unless they have booked profit.

Is unfortunate some were waiting to get 500% before selling.

Agbalowomeri:
But some of them would have lost 50% if they lose another 9/10 tomorrow and Tuesday

These folks who bought at highest price before the reversal of price in a no-dividend paying insurance stocks are the real losers(also known as the bag holders)!

Agbalowomeri:
They are all a one-off devaluation effect

From 2005 to 2022, how many banks have done 2 baggers in 17 years?

Fidelity,Wema,Access,Zenith and GTBANK have done more than 2.5 baggers

Agbalowomeri:
They are all a one-off devaluation effect

From 2005 to 2022, how many banks have done 2 baggers in 17 years?

The dividends have been consistent.

emmanuelewumi:
15 years to 20 years delivery is better

I will send the screenshot when I have access to CSCS online, the network is currently bad

8 to 10 year delivery is still okay.

emmanuelewumi:
I am sorry you don't have a good understanding of the concept of Return on Invested Capital.

The huge liabilities of banks will reduce the ROIC

It is also a highly regulated industry, meaning they can't just increase their fees, interest rates etc

How many banks can actually payout 40% of their EPS as dividends?


By the way, I still have shares of Access, UBA and Zenith

I have a good understanding of ROIC. Most Nigerian premium banks return on invested capital is not less than 10%.And 10% is a good one.

The CBN's regulation is why I still have confidence in the well managed banks.This regulation will prevent them from going bankrupt.

The low payout rate has helped them in growing their shareholder's funds. Their dividend yields are still good despite the low payout rate .

Agbalowomeri:
But banks will not give you the number of baggers these companies will give you

UBA and FIRSTHOLDCO have delivered more than 12 baggers.

Fidelity Bank has delivered more than 20 baggers.

WEMA Bank has delivered more than 40 baggers.

Zenith Bank has delivered more than 5 baggers.

FCMB has delivered more than 4 baggers

GTBANK has delivered more than 2.5 baggers.

emmanuelewumi:
How many banks can deliver a return on Invested capital of 30%, None. We have some non banking stocks delivering return on Invested capital of 50% to 60%.

Some businesses are making accounting profits while some are creating wealth the produce EVA Economic Value Added, such business generate economic profits.

Majority of these companies making 50 to 60 % on invested capital their dividend yield in most cases is not better than the dividend yields for banks like Zenith, GTBANK, Access,UBA and Fidelity.

The same companies still depend on Nigerian premium banks for loans.Most state government in Nigeria still depend on Nigerian banks for loans.The Nigerian banks are directly or indirectly running the economy. There can never be a growing Nigerian economy without the premium banks.

emmanuelewumi:
Looking at NGX in last 25 years, the real wealth creators are not the banking stocks with the exception of GTCO and Zenith Bank

I agree with you that banking stocks are cheap, but long term wealth creation is not just about cheapness but ability to continuously deliver a return on Invested capital of over 20% or the average inflation rate in the country and an earning growth that is above average

From 2014 to 2025 in my dividend stocks portfolio;ACCESSCORP, Zenith Bank and UBA have never failed in paying me good dividends for every financial year. To me,this is wealth creation. And I have been investing like 80 to 90 percent of the paid dividends back to my dividend portfolio.

I also have another portfolio for trading(aka portfolio reshuffling). This portfolio also give me a minimum of 5% every month. In this portfolio,I only buy and sell only 1 dividend stock at a time. In most cases the dividend stocks are banks.

From the above,you can see I have been creating wealth for myself mainly through banking stocks!

My question is: is there any state in Nigeria that you will not find Zenith Bank, Access Bank,UBA, GTBANK and First Bank?

Joyful365:
Cashflow is tight and money is losing value sitting idle waiting for the market to crash.

If you put money in TB it'll take one whole year, within which opportunities may come and go.

Can anyone guess when this bull run will end?

Right now most stocks looks overpriced and the ones with fair prices have very terrible fundamentals.

Never knew holding assets in USD can be so illiquid when you want to convert to ngn and put it in a good stock.

The gold and diamond you're seeking are in the banking stocks; except if you don't like investing in banking stocks.

oluseg2:
Dear house, kindly advise me on this please. I registered on Monday 11th August

Thanks

Send an email or give them a call for an update on your account registration.

emmanuelewumi:
I get loans for stock investment from my stockbroker or their sister companies. Talk to your Stockbroker

Loans for trading stocks are not usually structured for monthly payments but for quarterly or semi annual payments.


The value of the portfolio does not actually matter is you N170 million portfolio generating a dividend income of N15 million per annum. If yes your portfolio can conveniently service the N30 million loan.


Personally I don't do business with stockbroking firms that can grant me loans when I identify opportunities in the market

Jijo gangs,you can see the emphasis on dividends(that is,organic cash flow)!

emmanuelewumi:
But it is selling at a premium to it Book Value of 6. It should sell at a discount


The net asset of about N23 billion could only generate a meagre revenue of less than N70 million in 9 months

In 2035,Ellah lekos will surprise its shareholders!

Dupeodus:
Yes, I know that. The multiples of book value over capitalization and low p/e ratios are the primary reasons I reallocated my portfolio to the quality banks. However, a single incident of write off of a large troubled asset can wipe off the shareholders' funds and the p/b ratio is suddenly not as juicy as it looks.

That is why management is very sacrosanct. Zenith,UBA, ACCESSCORP,Fidelity and GTBANK have historically had good management.

I don't trust the management of FIRSTHOLDCO.

NajibatAde:
Hi everyone! A quick one, pls. In 2009, my father acquired Zenith shares, I think directly from them which he was issued a certificate of proof. He does not have a broker. Does anyone know if I can transfer the said shares into my portfolio, and how I would go about it?

Tell your dad to meet a good stockbroker so that he can dematerialize(digitalize) the share certificate.

You see why it is good to buy a good company.

Dupeodus:
Think about it. Every bank is motivated to show profit and declare dividends no matter what. Otherwise, the bank will invite a run which spells doom. Per book, a bank's assets will always be greater than it's liabilities. The question is the quality of those assets. As long as you continue to have deposits, even if the assets are not performing or performing poorly, the bank will still have cash to create more asset and pay dividends. The truth is this has been the case recently, otherwise, CBN will not be talking of forebearance. This situation may not be as dare as I am making it out but I believe there is some element of it right now. Otherwise, you'll not be seeing to he p/e ratios of banks at between 1 and 3. It's not been so historically.

So why have Sterling ,Unity and Union(it has been delisted because it couldn't meet up with standard)banks not been declaring and paying good dividends?

Have you seen the shareholder's funds of Zenith,UBA,GTCO and Access Bank? Their shareholder's funds are greater than their market capitalization!

Dupeodus:
You have not factored in risks. Most banks have their p/e ratios between 1 and 3. This is because their asset qualities are not quite transparent, especially with the talk of forebearance. Almost all of them have high concentration loans to a single obligor in the energy sector. Any mishap can turn that p/e ratios to 100 or even negative. I should disclose that I just reallocated my portfolio to the high quality banks except GTB despite what I just said.

I hope FIRSTHOLDCO is not part of those quality banks?

First Bank has been gereguralized!

Agbalowomeri:
So you think na people's deposit dem dey use pay dividends?

This dude thinks Zenith, GTBANK,UBA, ACCESS BANK,Fidelity Bank and Stanbic Bank are like Union Bank or Unity Bank.

Dupeodus:
Money is fungible. Globally, almost all banks that failed continue to pay dividends until the regulators step in.

Skye bank wasn't paying dividends and it didn't release result for some quarters before it went down.

Dupeodus:
50 x sales is crazy! Not for any Nigerian company.

Have you seen revenue for banks?

Dupeodus:
Banks are different from other companies because they take deposits. As long as deposits keeps flowing in, they'll be able to pay the dividends, even with questionable asset quality.

Deposit is part of liability!

Nigerian banks Asset is far greater than their liability. It is always stated in their financial statement.

Dupeodus:
You have not factored in risks. Most banks have their p/e ratios between 1 and 3. This is because their asset qualities are not quite transparent, especially with the talk of forebearance. Almost all of them have high concentration loans to a single obligor in the energy sector. Any mishap can turn that p/e ratios to 100 or even negative. I should disclose that I just reallocated my portfolio to the high quality banks except GTB despite what I just said.

You think an average dividend yield of 10% is a fluke? Dividend don't lie.

SonofElElyonRet:
But street your "comrade in arms" on nsempa bought Oando yanfuyanfu.. una two don dey confused sef

Do you know the meaning of 'if no shit e go piss'?

When last did Oando pay dividend?

What is the equity or shareholder's fund of Oando?

Oando is very indebted and you expect me to even buy a unit!

GeeKudi:
He is buying already. Same thing he did with OANDO.

You missed out on a stock, rather than waiting for the next window to get in, you constitute yourself to a nui.sance on the thread.

If you continue like this you will end up as a bag holder!

Me go buy shares wey no get consistent dividend history?

Streetinvestor2:
Thr audio billionaire and gang has thr remote control to press MU..bottom any how /time. lol

Na so

Streetinvestor2:
It is not smartness. It is u being not straight or fraudulent. They have shown it in many ways from the days of taking stock brokers for paparazzi. The secret of the true farm,head office and the mill in progress. Then the charades of the last agm.The debt conversion and incomplete quater results .
This present management is the biggest problem. I have always said it because I have understanding of how that sector works than any sector. The landbank alone should make that business to be making enough revenue to cover expenses before the oil business even if u don't want to do it directly. U could have leased it out in portions to smaller farmers to generate revenue for expenses

You're probably right

SonofElElyonRet:
Adonbilivit

Lekos is a future project!

Like you know,I only invest in undervalued established companies.