Investors are advised by analysts to look for dividend-paying stocks with sound fundamentals.
Lafarge Africa Plc and MTN Nigeria Plc recorded a gain of N78.783 billion or 1.81% during today’s trading as positive sentiment persisted in the equity market for the second trading day despite economic volatility.
Even though the CBN’s Monetary Committee increased the lending rate by 100 basis points to 16.5% on Tuesday, this still occurred.
A quick check revealed that the shares of Lafarge Africa Plc rose from N20.00 per share the day before to N22.00 per share at the close of trading, representing an increase of 5.26% or N17.719 billion in market value.
The market capitalization of MTN Nigeria shares increased by N61.063 billion, or 1.52%, after the day’s trading, rising from N197 per share to N4.009 trillion the previous day to N200 per share or N4.071 trillion today.
According to market analysts, higher interest rates undoubtedly have an effect on equities, but if investors are in the right sectors, they can still make money. That entails examining some of the industries that have performed well despite the weak overall economy.
According to investment analysts, dividend-paying stocks with solid fundamentals are anticipated to perform well given their respectable half-year performance.
They pointed out that the fact that the share prices of the publicly traded companies in this industry are falling makes it more alluring, so now is the time for investors to stockpile the stocks to benefit from capital gains and higher dividends as the economy rebalances.
When offering advice to investors, Kasimu Garba Kurfi, chief executive officer and managing director of APT Securities and Funds Limited, said:
“When interest rates are high such as this time, invest in stocks that give double-digit dividend yields such as GTCO, Zenith, UCAP, and also the stocks that have double-digit earning yields such as WAPCO, Fidelity Bank, Transcorp, Dangote Cement, Dangote Sugar, Vitafoam, Fidson, BUA Foods, Nigeria Flour Mills, Presco and also stocks whose prices are below 52 weeks low, such as UBA, Access Holdings, GTCO, Transcorp, AIICO and AXA-Mansard”.
