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.
Definition
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.
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.
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.
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.
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.
Yes, if your shares are registered in your name before the record date, you are entitled to receive any declared dividend. With Shares Saver, shares are registered directly in your name through regulated broker execution.
Nigerian dividends are typically paid via e-dividend directly to your registered bank account. You may need to ensure your bank details are registered with the relevant registrar.
Yes. Dividends are not guaranteed. A company's board decides whether to declare a dividend based on profitability, cash flow, and business strategy. Not all listed companies pay dividends every year.
Shares Saver lets you buy and own NGX-listed shares directly in your own name through regulated broker execution.
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