That double whammy of taxes is a big deal that a lot of folks don't consider as long as the dividend is paid. Imagine how much growth 'could' be achieved if the businesses had a buyback program when shares were undervalued or reinvested same for expansion opportunities.

But again, the fear of a wasteful company management throwing money away through 'diworsefication' might be the reason folks don't want companies implementing buyback programs.

I don't mean buyback for the sake of it but when shares are cheap as they have been would have been an opportune time to implement it.

I have some DangCem shares but nothing that would move the needle.

Ades1:


I believe Dangote did a lot of buyback during the first half of the year.

Imagine if the big banks did the same thing and used all that dividend money to buyback some of their shares!

A lot of people/retirees will not like this but I personally will not mind. That’s 10% less taxes shareholders will need to pay to the crooked government

This issue has not been resolved yet but thankfully my brokerage account is intact so no cause for alarm yet. I'll presume they are in the process of merging my different CHNs request.

I'll give them till Monday

OBAGADAFFI:


Really ?

thesilentone:
That double whammy of taxes is a big deal that a lot of folks don't consider as long as the dividend is paid. Imagine how much growth 'could' be achieved if the businesses had a buyback program when shares were undervalued or reinvested same for expansion opportunities.

But again, the fear of a wasteful company management throwing money away through 'diworsefication' might be the reason folks don't want companies implementing buyback programs.

I don't mean buyback for the sake of it but when shares are cheap as they have been would have been an opportune time to implement it.

I have some DangCem shares but nothing that would move the needle.

Give us our dividend make we chop fess. Na only dividend I see chop for my union bank investment in 2003. Capital don enter voice mail

The horse on their logo is tired, it needed some rest that's why you didn't get the capital.

Agbalowomeri:


Give us our dividend make we chop fess. Na only dividend I see chop for my union bank investment in 2003. Capital don enter voice mail

SEPLAT NSE - H&S on the weekly - 790 area is support, That gap between the current price and support is filled with AIR.
SEPLAT LSE - Double top on the weekly.

Break of neck - next week? expected with that full body bearish candle

thesilentone:
That double whammy of taxes is a big deal that a lot of folks don't consider as long as the dividend is paid. Imagine how much growth 'could' be achieved if the businesses had a buyback program when shares were undervalued or reinvested same for expansion opportunities.

But again, the fear of a wasteful company management throwing money away through 'diworsefication' might be the reason folks don't want companies implementing buyback programs.

I don't mean buyback for the sake of it but when shares are cheap as they have been would have been an opportune time to implement it.

I have some DangCem shares but nothing that would move the needle.

Management usually do buy back when the shares are overpriced, this will allow them to derive maximum return when exercising their stock options.


Instead of buy back, I think companies should encourage dividend reinvestment programs for interested shareholders

Agbalowomeri:


Give us our dividend make we chop fess. Na only dividend I see chop for my union bank investment in 2003. Capital don enter voice mail

Exactly.

I am strictly an income Investor, I can create growth for myself by diversifying using the dividends or reinvesting in the same company, but the dividend must come first.


I give myself a minimum yield on cost of 30% after holding a dividend paying stock for 10 years

If you started buying United Capital shares in 2013 and your average cost price is N3.00. Based on the dividend of N1.50k paid last year, your yield on cost is 50%.

Mpeace:
I am holding long term.

Let's see how it goes sha.

You make very good points:

If the board is incentivised through stock options then they will do buybacks at the time that favours them but is detrimental to the other shareholders but there is a way to counter this move if the shareholders understand the game. Also, the board can get away with it if they themselves are not shareholders in the business. That is why I am VERY wary of companies where the decision makers don't put their money where their mouth is. Several examples abound here.

The Dividend Reinvestment program is a great idea because it helps with compounding but I don't know any company that actually gives that option on the NSE. It will be interesting to bring up such a matter at the AGMs - though I understand that the folks allowed to ask questions might be 'preselected' to avoid embarrassing questions.

I will be asking the Investor Relations Officers of the companies in my portfolio, if all the moneybags here do likewise, we might get a bit of traction.

emmanuelewumi:



Management usually do buy back when the shares are overpriced, this will allow them to derive maximum return when exercising their stock options.


Instead of buy back, I think companies should encourage dividend reinvestment programs for interested shareholders

thesilentone:
You make very good points:

If the board is incentivised through stock options then they will do buybacks at the time that favours them but is detrimental to the other shareholders but there is a way to counter this move if the shareholders understand the game. Also, the board can get away with it if they themselves are not shareholders in the business. That is why I am VERY wary of companies where the decision makers don't put their money where their mouth is. Several examples abound here.

The Dividend Reinvestment program is a great idea because it helps with compounding but I don't know any company that actually gives that option on the NSE. It will be interesting to bring up such a matter at the AGMs - though I understand that the folks allowed to ask questions might be 'preselected' to avoid embarrassing questions.

I will be asking the Investor Relations Officers of the companies in my portfolio, if all the moneybags here do likewise, we might get a bit of traction.

I think Stanbic IBTC gives that option of dividend reinvestment.

thesilentone:
You make very good points:

If the board is incentivised through stock options then they will do buybacks at the time that favours them but is detrimental to the other shareholders but there is a way to counter this move if the shareholders understand the game. Also, the board can get away with it if they themselves are not shareholders in the business. That is why I am VERY wary of companies where the decision makers don't put their money where their mouth is. Several examples abound here.

The Dividend Reinvestment program is a great idea because it helps with compounding but I don't know any company that actually gives that option on the NSE. It will be interesting to bring up such a matter at the AGMs - though I understand that the folks allowed to ask questions might be 'preselected' to avoid embarrassing questions.

I will be asking the Investor Relations Officers of the companies in my portfolio, if all the moneybags here do likewise, we might get a bit of traction.

Nigeria Brewery and Stanbic IBTC have Dividend Reinvestment programs

Excellent7:


I think Stanbic IBTC gives that option of dividend reinvestment.

And Nigeria Brewery

emmanuelewumi:
If you started buying United Capital shares in 2013 and your average cost price is N3.00. Based on the dividend of N1.50k paid last year, your yield on cost is 50%.

Now do the same for Zenith, Stanbic, GTCO, or UBA. Lets not continue to talk about UCAP only.

Yes, UCAP has been very nice to me, I bought most of my shares at N5, but UCAP is only one company in a portfolio , the rest of them just doing like mumu and will most likely not pass this your 30% YOC criteria

Ades1:



Now do the same for Zenith, Stanbic, GTCO, or UBA. Lets not continue to talk about UCAP only.

Yes, UCAP has been very nice to me, I bought most of my shares at N5, but UCAP is only one company in a portfolio , the rest of them just doing like mumu and will most likely not pass this your 30% YOC criteria

I believe with an uptick in optimism
The share prices of these companies will rebound again

What we are witnessing in part is some big funds pulling out of the NSE

Thank you. I'll add them to my list

Excellent7:


I think Stanbic IBTC gives that option of dividend reinvestment.

Thank you. I'll add NB to my list

emmanuelewumi:



Nigeria Brewery and Stanbic IBTC have Dividend Reinvestment programs

emmanuelewumi:
If you started buying United Capital shares in 2013 and your average cost price is N3.00. Based on the dividend of N1.50k paid last year, your yield on cost is 50%.

What other stock has given this yield on cost?
2013 is 9 years ago though.

RabbiDoracle:


The same inability to withdraw forex occurred in 2009 - 2010, 2015 - 2016, 2021 - 2022. So it is a cycle that will pass and USD/NGN will revert to 415 if not lower.

This too shall pass.

In 2015 to 2016

It went from 180 to 360 it never recovered.

I doubt there will be recovery for 2021 to 2022. Also we all know the next government will devalue the naira

Backpedal:

I believe with an uptick in optimism
The share prices of these companies will rebound again

What we are witnessing in part is some big funds pulling out of the NSE

I believe so too, but company can find a better way to maximize shareholder returns especially at current low prices!

In 2023, this useless government will collect around N150k as taxes from my dividends, you think I am ok with that? I’d rather have the company buy back shares and not pay dividends. This way, this thieving government will not eat from my hard work. Na thief them dey kuku thief the taxes anyways, not like they’re doing anything else with the money

Agbalowomeri:


Make una check on Pa Ewumi o

Big boss,you can see he is doing great

Wapgod:

What other stock has given this yield on cost?
2013 is 9 years ago though.

Considering the bonuses of stocks like GTB and Zenith and the over 300% growth in the dividends paid in the last 14 years from about 70k to over N3.00 their yield on cost should be over 30%.


The trick about this is that you should love the bear market (this can only happen if you are earning Investment incomes during the bear market) combine yield hunting with sustainable earning growth,continue to buy in a down market in order to reduce your average cost price, reinvest your dividends, invest in companies with solid cash flow and ability to increase their dividends over time, use cash flow growth or dividend growth as the basis of your stock valuation and buy at above 30% less than the intrinsic value

thesilentone:
Thank you. I'll add NB to my list

Know what you are buying and the reason for buying.

All the best

Naira appreciated because of U.S. threat against those hoarding Dollars all over the world, particularly in Nigeria- Sen. Shehu Musa. I share his view.

emmanuelewumi:



Exactly.

I am strictly an income Investor, I can create growth for myself by diversifying using the dividends or reinvesting in the same company, but the dividend must come first.


I give myself a minimum yield on cost of 30% after holding a dividend paying stock for 10 years

Very few have the patience and the wisdom to use your strategy. It takes more than a decade to know. I vouch to say the strategy is the only guaranteed trajectory.
However, i discovered that one should avoid ranging stocks while picking stocks and diversifying for long term.
I can write a thesis analysing the unbeatable Long Term Basket strategy, and it's potential gains. My now permanent strategy.
You're a worthy mentor.
Long live Nigeria.

Toluway:

Very few have the patience and the wisdom to use your strategy. It takes more than a decade to know. I vouch to say the strategy is the only guaranteed trajectory.
However, i discovered that one should avoid ranging stocks while picking stocks and diversifying for long term.
I can write a thesis analysing the unbeatable Long Term Basket strategy, and it's potential gains. My now permanent strategy.
You're a worthy mentor.
Long live Nigeria.

I was actually referring to Agbalowomeri, whose strategy I've under-studied over the years. I always confuse emmanuelewumi with Agbalowomeri. It seems like the former uses the same strategy as the latter(Agba)
I also know that emmanuelewumi could drag me straightaway, just because i made a comment he didn't like, or for dare commenting at all. He did so over and over.
These two are legendary investors that should be under-studied by young investors. However, it requires great courage. Long live Agba and elewumi.

So Union Bank has finally been bought and delisted.
Cornerstone Registrar asked me to fill a form to enable get my invested money at #7 per share.
Who knows whether any other stock in my portfolio has threaded the same path!

Toluway:
So Union Bank has finally been bought and delisted.
Cornerstone Registrar asked me to fill a form to enable get my invested money at #7 per share.
Who knows whether any other stock in my portfolio has threaded the same path!

How did you get the form?

BabsO2:
If one needs to fill a form when will it be out ?. I thought holders of the shares will just be paid off and get ebuyout payment in their accounts like a dividend warrant automatically?

See UBN MTO form attached.

Also available @
https://cardinalstoneregistrars.com/forms/

** Form not attaching....but visit the Cardinal Stone link to download the form.

Wapgod:

How did you get the form?

MTO Acceptance Form
https://cardinalstoneregistrars.com/forms/

* Had to search for the form due to Uncle Tolu's post here........So some actually saw it and didn't notify the house. It's well o. No one owe anyone anything after all.

**Offer opened on 2nd Nov and closing on 23rd Nov. 2022.....
** Send filled form to registrars@cardinalstone.com

Wapgod:

How did you get the form?

Just ask Cornerstone Registrar. They are nice guys.

N