Dangote Cement and MTN Nigeria (MTNN) on Wednesday hit the N3 trillion market capitalisation at the close of trading on the Nigerian Stock Exchange, NSE.
MTNN’s market capitalisation had the highest share which stood at N3.25 trillion, the biggest company by market capitalisation, while Dangote Cement followed with N3.15 trillion, while GTBank also crossed the trillion naira market cap to end at N1.05 trillion.
The NSE now has five companies with a trillion naira market capitalisation; MTNN, Dangote Cement, BUA Cement, Nestle Nigeria and GTBank.
Meanwhile, local investors have continued to flock the stock market in search of returns, as yields on government debt tanked after a surprise September rate cut by the monetary policy committee (MPC).
An analysis of dividend yield of these companies shows that they offer a higher risk premium than fixed income — the lowest dividend-yielding trillion-naira stocks still offer yields that are higher than the one-year treasury bill which currently yields 0.30 per cent.
As at Wednesday, Dangote Cement offered a dividend yield of 8.89 per cent; GTBank (8.08 per cent) Nestle Nigeria (5 per cent); MTNN (4.48 per cent) and BUA Cement (3.91 per cent).
A dividend yield is a financial ratio that measures the quantum of cash dividends paid out to shareholders relative to the market value per share.
Shares of GTBank have gained 21.21 per cent this year, and traded at N36 on Wednesday — the highest seen this year — while MTNN and Dangote Cement have also recorded double-digit growth in 2020.