What Is a Dividend?
A dividend is a payment a company makes to its shareholders from its profits. When a company listed on the Nigerian Exchange (NGX) performs well, its board may choose to share a portion of those profits with shareholders in the form of a dividend.
Dividend. A dividend is a portion of a company's profits paid out to registered shareholders, usually on a per-share basis, declared at the discretion of the company's board.
How dividends are declared in Nigeria
Nigerian companies listed on the NGX declare dividends after their annual or interim results. The board proposes a dividend per share — for example ₦0.50 per share — which shareholders then vote on at the Annual General Meeting (AGM). Once approved, the dividend is binding.
Key dates: record date and payment date
To receive a dividend, you must be a registered shareholder on the record date. The record date is the cut-off point: anyone holding shares on that date receives the dividend. The payment date is when the dividend is actually credited — typically a few weeks after the record date. With Shares Saver, your shares are registered in your name so you are eligible for dividends as a direct shareholder.
Cash dividends vs scrip dividends
Most Nigerian companies pay cash dividends directly to the shareholder's bank account (via the registrar's e-dividend system). Some companies offer scrip dividends — where you receive additional shares instead of cash. The company will specify which type of dividend is being paid.
Do you pay tax on dividends in Nigeria?
Dividend income in Nigeria is subject to withholding tax (WHT) at 10%, which is deducted at source before payment reaches you. Shares Saver does not provide tax advice — consult a qualified tax adviser for your specific situation.
Questions
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This article is for general information and educational purposes only. It does not constitute financial advice, investment advice, legal advice, or tax advice. The value of investments can fall as well as rise. Seek independent regulated financial advice before making any investment decision. Shares Saver does not provide financial advice.
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