The earnings season is a period where investors evaluate their portfolios based on the results released by these companies. For companies with a track record of great results, it is likely that you see their share price surge while those that post weaker results could see their share price tank.
We are well into the earnings season which is the period when listed companies publish interim and audited accounts for the period ended June 30th, 2019.
Another item of importance of the period is the interim dividend typically declared in this period. June 30th typically represents the half-year period for most companies and is also when they decide to declare interim dividends. Dividend is a critical factor in also deciding how shares get valued.
For long-term investors in the stock market, owning stocks that pay dividends regularly should always be part of your portfolio. For shorter-term speculative investors, dividend payments is not an important factor in their decision-making as all they are after is cashing out on the value created when the share prices increases.
GTBANK
Tier one bank, GT bank has a track record for paying interim dividends, as it has done so in the past 10 years. The bank’s board is scheduled to meet on 24th July for approval of the bank’s audited accounts and financial statements and also, consider issues concerning the bank’s half-year dividend.
The bank had last year paid an interim dividend of 30 kobo per share, and this year may not be different.
The bank’s unaudited Financial Results for the quarter ended March 31, 2019 show gross earnings for the period surged 1.2% to ₦110.3billion from ₦109.0billion posted in March 2018. Profit before tax improved to ₦57.0billion from ₦52.6billion recorded in the corresponding period of March 2018, representing a growth of 8.3%. Customers’ deposits also rose by 6.0% to ₦2.410trillion in March 2019 from ₦2.274trillion in December 2018.
ZENITH BANK
Zenith Bank In a notice sent to the Nigerian Stock Exchange (NSE), hinted that its directors scheduled to meet on 23rd July to consider the group’s audited interim financial result and also consider possible interim dividend payment for shareholders.
The bank, last year paid an interim dividend of 30 kobo per share, in the first quarter ended 31 March 2019, the bank recorded improved numbers across key metrics, driven by a solid performance in all its business segments.
This resulted in a Profit before Tax (PBT) of ₦57 billion, representing a 6percent growth over the ₦54 billion achieved in the corresponding period in 2018.
UBA
This is another stock that has a tradition of consistent dividend payment. UBA last year paid an interim dividend of 20 kobo per share. In its unaudited first quarter results for the period ended March 31, 2019, gross earnings grew by 10.3percent to N131.67bn from N119.37 in the previous quarter. Interest income grew 9.1percent from N90.33bn in Q1 2018 to N98.56bn in Q1 2019 while Profit After Tax grew by 20.8percent to N28.66bn
Access Bank
Access bank is the country’s biggest lender after the completion of merger with Diamond Bank. The bank had between 2013-2016 has consistently paid at least 25 kobo as interim dividend. In a notice sent to the NSE early this month, the bank hinted that its directors would consider the possibility of paying an interim dividend.
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