The Nigerian government’s tentative plan to take custody of unclaimed dividends belonging to private shareholders
In the Nigerian investment space, many retail investors still fall into a common trap: celebrating a company’s absolute dividend while ignoring the more important metric — the dividend yield.
This misunderstanding can lead to poor investment decisions, especially in a high-interest-rate environment where Treasury bills, bonds, and real estate are competing aggressively for capital. Let us break it down clearly.
“When you use your dividend income to buy more shares, those additional shares generate their own dividends, which are then reinvested, and so on. Over time, this snowball effect can turn modest yields into substantial wealth.”
Dividend paid vs Dividend yield
‘Dividend Paid’ is simply the absolute amount a company distributes to shareholders per share. For example, if United Bank for Africa (UBA) pays ₦3.25 per share annually, that is the dividend paid. It sounds
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