When listed firms go silent on dividends, buyers find yourself holding lifeless cash
Forty-five out of the 146 firms listed on the Nigerian Trade Restricted (NGX) haven’t paid dividends in a minimum of 5 years.
Meaning roughly one in each three quoted corporations has withheld money rewards from shareholders over that interval, in accordance with a Nairametrics evaluation.
Dividends are the portion of an organization’s revenue distributed to shareholders, serving as one of many few dependable methods buyers can earn a gradual stream of earnings from the inventory market.
Common funds are additionally a marker of monetary energy, since they’re drawn from both present income or retained earnings, and sign administration’s dedication to rewarding shareholders.
For income-focused buyers, an organization’s dividend historical past is commonly as vital as its development prospects.
Nonetheless, a choice to not pay dividends doesn’t at all times imply an organization is in misery. Development-stage corporations, for instance, are inclined to reinvest income into enlargement or acquisitions relatively than distribute them as money.
The non-dividend firms
The businesses that haven’t paid dividends reduce throughout varied sectors, from client items to ICT, industrial items, and healthcare.
Within the Client Items sector, laggards embrace DN Tyre & Rubber, Golden Guinea Breweries, Multi-Trex Built-in Meals, Union Dicon, Nigerian Enamelware, and Worldwide Breweries.
From the Insurance coverage sector, Royal Trade, African Alliance Insurance coverage, Regency Assurance, Staco Insurance coverage, and Common Insurance coverage haven’t paid dividends in a minimum of 5 years.
The Microfinance Banks sub-sector has Aso Financial savings and Loans, whereas Deap Capital Administration & Belief sits below Different Monetary Establishments.
Safe Electronics (previously Nationwide Sports activities Lottery) has by no means paid dividends since 2008.
The Healthcare sector contains Ekocorp, Morison Industries, and Pharma-Deko.
In ICT, Omatek Ventures, NCR Nigeria, Chams Holding Firm, and e-Tranzact Worldwide characteristic prominently.
Inside Industrial Items, Premier Paints, Austin Laz & Firm, and Greif Nigeria Plc have gone dividend-dry, whereas within the Pure Assets sector, Thomas Wyatt Nigeria has not paid dividends since 2007.
Why it issues
John Udoh, a dealer at Arthur Steven Asset Administration, informed Nairametrics that buyers ought to examine these firms to grasp why dividends usually are not being paid.
“Nobody shall be joyful to have an funding that doesn’t yield dividends. Firms that don’t pay usually are not encouraging their shareholders,” Udoh mentioned.
A assessment of monetary statements reveals that many of those corporations have struggled to stay worthwhile suggesting losses as a cause for shelving payouts
Only a few of the 45 non-dividend-paying firms have posted income over the previous 5 years.
Even amongst those who managed to show a revenue, earnings have been too inconsistent and low to maintain dividend funds.
Curiously, a few of these “silent shares” have seen sharp worth rallies this yr. Firms corresponding to Ellah Lakes, FTN Cocoa, Chellarams, SCOA, Royal Trade, Worldwide Breweries, NCR, Worldwide Vitality Insurance coverage, Omatek, and Nigerian Enamelware Plc have posted triple-digit year-to-date beneficial properties regardless of their dividend drought.
Ellah Lakes, as an illustration, has posted constant losses over the interval, highlighting how persistent unprofitability usually underpins dividend droughts.
FTN Cocoa tells an identical story. The corporate has not paid dividends in 5 years, weighed down by recurring losses of N10.65 billion in 2023 and N9.53 billion in 2024. Although H1 2025 confirmed an 89% YoY enchancment with losses narrowing to N1.1 billion, dividends stay unlikely till sustained profitability returns.
Worldwide Breweries has additionally skipped dividends for 5 years, dragged down by a N113 billion loss in 2023. However the losses narrowed sharply to N6 billion in 2024, and by H1 2025 it posted a N29.4 billion revenue. The large query now’s whether or not this turnaround will translate into dividends.
John Holt Plc has managed income solely twice within the final 5 years, in 2022 and 2024, however has nonetheless paid no dividends. Its rebound was short-lived, because it slipped again into losses in H1 2024, leaving buyers caught in a cycle of hope with out reward.
SCOA, in the meantime, has posted income 3 times in 5 years but additionally withheld dividends. In H1 2025, it recorded N342 million in revenue, already surpassing its 2024 full-year revenue of N229 million. But, regardless of the shortage of payouts, its inventory has nonetheless gained 167% year-to-date.
Daar Communications has by no means paid dividends since itemizing in 2008 and has been reporting losses constantly since a minimum of 2013.
Royal Trade Insurance coverage in 2006, Staco in 2008, and Morrisons in 2009. Ekocorp, Worldwide Vitality Insurance coverage (IEI), and Omatek haven’t paid dividends since 2011, whereas Chellarams, Ellah Lakes, NCR, RT Briscoe, Tantalisers, and Vanleer (previously Greif) have all been silent since 2012.
Analysts observe that the persistence of silent shares on the NGX underscores a deeper problem for buyers: the disconnect between share worth rallies and shareholder rewards. They argue that whereas some corporations submit spectacular market beneficial properties, their failure to declare dividends questions the sustainability of such worth creation.
For buyers, the lesson is evident: worth appreciation with out underlying profitability or money distribution could be a hole win. Till extra firms decide to sustainable income and constant payouts, the dividend drought will stay a thorn within the aspect of NGX shareholders
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