What are dividend paying stocks and why do they matter?

Dividend paying stocks are shares in companies that regularly distribute a portion of their profits to shareholders as cash payments. They matter because they provide a steady income stream whilst you hold the stock, making them particularly attractive for investors seeking both growth potential and regular returns from their investments.

Why invest in multinationals with African operations rather than direct African stocks?

Investing in globally-listed multinationals with African exposure offers several advantages: easier access through major exchanges, greater liquidity, established regulatory oversight, and the stability of mature companies. You gain exposure to Africa's growth potential without the complexities of trading on local African exchanges.

What does 'Market Cap' mean and why is it important?

Market capitalisation (Market Cap) is the total value of a company's shares in the stock market, calculated by multiplying the share price by the number of shares outstanding. It helps investors understand the size and stability of a company - larger market caps typically indicate more established, stable businesses.

How do I know when dividends will be paid?

Companies announce dividend payment dates in advance, typically quarterly or semi-annually. The 'Dividend Payment Date' shows when the next payment is scheduled. To receive a dividend, you must own the stock before the 'ex-dividend date', which is usually a few days before the payment date.

What is Nigeria's economic growth potential?

Nigeria is Africa's largest economy and most populous country, with a rapidly growing middle class and increasing urbanisation. The country's young demographic, expanding telecommunications infrastructure, and growing consumer market make it an attractive destination for multinational companies seeking growth opportunities.

9 handpicked stocks

Nigeria Dividend Stocks | Africa Multinationals Overview

As Nigeria's economy grows, global companies operating there may offer a source of income for investors. This collection focuses on US/EU-listed multinational corporations with significant business in Africa that have a history of paying dividends.

Han Tan | Market Analyst

Updated 1 day ago | Published at September 9