What are dividend stocks and why are they important?

Dividend stocks are shares in companies that regularly pay out a portion of their profits to shareholders. These payments provide a steady income stream and can help protect against inflation, making them particularly valuable during economic uncertainty.

How do these companies have exposure to Africa?

These multinational corporations generate substantial revenue from their operations across African markets. They may have mining operations, telecommunications networks, consumer goods distribution, or financial services that serve millions of customers throughout the continent.

What does dividend yield mean?

Dividend yield is the annual dividend payment expressed as a percentage of the stock's current price. For example, if a stock costs £100 and pays £4 in dividends per year, the dividend yield is 4%. Higher yields generally mean more income relative to your investment.

Why invest in global companies rather than local African stocks?

Global companies listed on major exchanges often offer greater liquidity, regulatory oversight, and financial transparency. They also provide currency diversification whilst still benefiting from African economic growth through their regional operations.

How often are dividends typically paid?

Most companies pay dividends quarterly (every three months), though some pay annually or semi-annually. The dividend payment date shows when the next payment is scheduled, helping you plan your income expectations.

6 handpicked stocks

Best Dividend Stocks: Could Africa Exposure Pay Off?

As economic uncertainty and inflation challenge savings in Nigeria, dividend-paying companies offer a potential source of regular income. This basket provides exposure to US/EU-listed multinational corporations with significant operations or consumer markets across Africa.

Han Tan | Market Analyst

Updated 1 day ago | Published at September 9