Investing in the Nigerian stock market is not for the faint-hearted. Knowing the right stocks to buy is the first step for a successful stock investment. The Nigerian stock market has be largely poor when compared to the US stock market. However, there are some stocks that have performed very well over the years. This post will show you the best stocks to buy in Nigeria.
Table of Contents
Best Performing Stocks in Nigeria
Nestle Nigeria Plc
Nestle is one of the largest conglomerate in the world. Its Nigerian arm Nestle Nigeria Plc has a solid business with strong performance over the years. On stock performance, the stock has returned close to 100% for the past five years to investors. Nestle is known as one of the most stable dividend paying stocks in Nigerian Stock Exchange.
Nestle Nigeria has a strong business. The company recorded revenue of N351. 8 billion as of the year ended Dec. 31, 2021, representing 22.6% growth over the N287. 08 billion posted in 2020. It also posted a profit of about N40 billion in same period.
Nestle Nigeria manufactures and markets a range of brands, which include NAN, Nutrend, Cerelac, Golden Morn, Milo, Maggi Cube, Table Water. Its product mix has strong growing demand, which solidifies its status as a strong stock to buy.
MTN Nigeria Plc
MTN is the leading telecommunications services provider in Nigeria. Since its listing on the Nigeria stock exchange in 2019, it has returned over 100% to its initial investors. Aside the returns in terms of stock price, MTN also pays a very good dividend to investors annually. In 2021, MTN paid dividend of N8.57 per share which amounts to a payout of N174. 4 billion.
Aside the performance of the stock and dividend payment, MTN is a very strong business, its 2021 Fiscal Year audited Financial Statement revealed a 22.90% growth in revenue from N1.35 trillion to N1.65 trillion. It also made profit after tax of N298.7 billion for the 2021 financial year, up 45.5 percent from N205.2 billion the previous year.
In April 2022, the MTN was granted a mobile banking license by Central Bank of Nigeria. This means they can run their Momo Payment service in the country. Considering the success of Momo payment service in other African countries, this is a huge growth potential for MTN.
Dangote Cement Plc
Dangote Cement Plc manufactures, packages and distributes cement and related products in Nigeria and rest of Africa. for the limestone mining, coal production and property investment sectors in Nigeria and the rest of Africa.
Dangote Cement Plc has returned over 75% profit to investors over the past five years.
Dangote Cement has a solid business, in 2021 full fiscal year, its revenue increased by 33.8% to ₦1,383.6 billion from ₦1,034.2 billion the previous year. With a lot of infrastructural development going on in Africa, the cement industry is not slowing down any time soon.