ojesymsym:
Using the present day value of shares, if I wanted to be earning at least 2M dividends, what should my mix and value of my portfolio look like?

Buy about 1m units of Zenith Bank shares, with about 12m naira.

ojesymsym:
Using the present day value of shares, if I wanted to be earning at least 2M dividends, what should my mix and value of my portfolio look like?

Zenith pays two dividends in a year; interim (30K) and final (N2.50K) making a total of N2.80. So if you want a total div income of N2M giving that the current dividend pay out is sustained, you will need to hold c.794K units (net of tax). Based on current market price, this will cost you N9.4M only.

IYGEAL:


Buy about 1m units of Zenith Bank shares, with about 12m naira.

Coolcash1:


Zenith pays two dividends in a year; interim (30K) and final (N2.50K) making a total of N2.80. So if you want a total div income of N2M giving that the current dividend pay out is sustained, you will need to hold c.794K units (net of tax). Based on current market price, this will cost you N9.4M only.

That would be placing all his eggs in one basket. I read somewhere that a good portfolio should consist of a bunch of good stocks, making it antifragile.

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ositadima1:





That would be placing all his eggs in one basket. I read somewhere that a good portfolio should consist of a bunch of good stocks, making it antifragile.

Not putting all egg in one basket is technically referred to as diversification. In terms of diversification, it means investing in different asset classes e.g stocks, t-bills, real estate etc to eliminate risk and maximize returns.

Holding a portfolio of multiple stocks with good fundamentals is good but not diversification. The advantage is that it produces high yield and losses are minimized.

RabbiDoracle:


Your writeup isn't structured.

And what will cause the bailout of banks?

Rabbi, So you are not aware that all the top banks in Nigeria are highly exposed to oil and gas sector.
The implication of this is that the banking sector might be the first casualty of what we fear most(Recession )
First bank has not recovered from the NPL of 2012/14.
Already, Zenith and GT have been downgraded by Fitch.
No one can predict what will happen next. However, we must remain invested.

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Godlylifeoneart:



Rabbi, So you are not aware that all the top banks in Nigeria are highly exposed to oil and gas sector.
The implication of this is that the banking sector might be the first casualty of what we fear most(Recession )
First bank has not recovered from the NPL of 2012/14.
Already, Zenith and GT have been downgraded by Fitch.
No one can predict what will happen next. However, we must remain invested.

Since when?

Hope you know this isn't the first oil price crash?

One happened between 2014 till 2016. That was when all the banks took serious impairments for years(till 2018 sef).

I believe they must have learnt their lessons and hedge their risk appropriately.

If you downgrade a country, the banks will have same downgrades as well. You can't have a bank do well when the country is downgraded.

The risk to Nigeria is oil price. Some of the casualties of the low oil price are starting to show up in the US shale industry. One oil and has firm declared bankruptcy last week. More to come in the US.

That is why Trump wants to broker peace between Russia and Saudi to limit the number of US Oil workers that will be unemployed.

The first casualty in Nigeria will be the oil service industry. They will lay lots of them off as IOCs start cost cutting, reduction in capital spending and streamlining of activities.

Nigerian banks wicked o. E be like say you never hear who dem do something before.

Coolcash1:


Not putting all egg in one basket is technically referred to as diversification. In terms of diversification, it means investing in different asset classes e.g stocks, t-bills, real estate etc to eliminate risk and maximize returns.

Holding a portfolio of multiple stocks with good fundamentals is good but not diversification. The advantage is that it produces high yield and losses are minimized.

Very apt, sir. However, there is a distinct difference between a diversified portfolio and diversified investment. What I believe Mr Ositadima meant by not putting one's eggs in one basket is portfolio diversification while what you described above is investment diversification. Hence, the ''bolded'' section of your comment is also a form of diversification in the stock market.

Godlylifeoneart:



Rabbi, So you are not aware that all the top banks in Nigeria are highly exposed to oil and gas sector.
The implication of this is that the banking sector might be the first casualty of what we fear most(Recession )
First bank has not recovered from the NPL of 2012/14.
Already,Zenith and GT have been downgraded by Fitch.
No one can predict what will happen next. However, we must remain invested.

In my opinion, the worst that can happen to these two giants in the banking sector is a suspension of dividend payout. They'll most likely come out strong(er) when this madness is over.

Most tier one banks have drastically reduced borrowing to oil and gas sector as from 2018 . But before then huge loans was opened to oil sectors cos of expected interest rate that was attached to it .Of recent ,Zenith and Gtb won’t release funds to u as far as ur coming from oil sector unless u have good collateral to cover such loan ie if ever u are to be considered.Sterling and fidelity bank still taken the risk of lending to the sector .

Godlylifeoneart:



Rabbi, So you are not aware that all the top banks in Nigeria are highly exposed to oil and gas sector.
The implication of this is that the banking sector might be the first casualty of what we fear most(Recession )
First bank has not recovered from the NPL of 2012/14.
Already, Zenith and GT have been downgraded by Fitch.
No one can predict what will happen next. However, we must remain invested.

Thanks for your inputs.

Just wondering if Zenith does not become an overhyped share since everyone seem to be suggesting it, just my thoughts.

IYGEAL:


Buy about 1m units of Zenith Bank shares, with about 12m naira.

Coolcash1:


Zenith pays two dividends in a year; interim (30K) and final (N2.50K) making a total of N2.80. So if you want a total div income of N2M giving that the current dividend pay out is sustained, you will need to hold c.794K units (net of tax). Based on current market price, this will cost you N9.4M only.

Enyinne:
Most tier one banks have drastically reduced borrowing to oil and gas sector as from 2018 . But before then huge loans was opened to oil sectors cos of expected interest rate that was attached to it .Of recent ,Zenith and Gtb won’t release funds to u as far as ur coming from oil sector unless u have good collateral to cover such loan ie if ever u are to be considered.Sterling and fidelity bank still taken the risk of lending to the sector .

Including FCMB. The reason I have recently decided to align with tier one banks during this period of uncertainty.

Okay. What would be your suggested portfolio mix to achieve the same dividends yield of 2M annually?

seyisanya:
Very apt, sir. However, there is a distinct difference between a diversified portfolio and diversified investment. What I believe Mr Ositadima meant by not putting one's eggs in one basket is portfolio diversification while what you described above is investment diversification. Hence, the ''bolded'' section of your comment is also a form of diversification in the stock market.

Coolcash1:


Zenith pays two dividends in a year; interim (30K) and final (N2.50K) making a total of N2.80. So if you want a total div income of N2M giving that the current dividend pay out is sustained, you will need to hold c.794K units (net of tax). Based on current market price, this will cost you N9.4M only.

ojesymsym:
Okay. What would be your suggested portfolio mix to achieve the same dividends yield of 2M annually?

Since you have a specific annual target in mind, I would advise you go with sir Coolcash1 suggestion above.

ojesymsym:
Thanks for your inputs.

Just wondering if Zenith does not become an overhyped share since everyone seem to be suggesting it, just my thoughts.

I don't think zenith is being over hyped.
As far as I know, zenith offers probably the best dividend yield on nse.
They have a pretty good history of dividend payment too.
In the last 7 years, the least they have paid is N1.75k, that was 2013 and 2014.

Having said this,I will not support the idea of you putting all your money in zenith bank when you are not Jim.

There are other stocks with good dividend history but you will need more money to achieve the same result as they have lower dividend yield.

Who wants to buy Shares from crowd1??

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Did anyone else read this? That Lafarge got a tax holiday of about three years

Your right. We know them

seyisanya:
Including FCMB. The reason I have recently decided to align with tier one banks during this period of uncertainty.

Oil futures looking at a massive gap down; the postponement of the OPEC/Russia meeting from tomorrow to Thursday must have caused it.

This week should see a huge gain if that meeting results in a cut of at least 10m barrels.

Help my portfolio, people.
My Zenith is now in red to the tune of 25m. Help!!!
UBA is 6.5m loss.

Seunn11:
Help my portfolio, people.
My Zenith is now in red to the tune of 25m. Help!!!
UBA is 6.5m loss.

i don't understand when you say help. Are we the one responsible for the loss? That's stock business for you.

Seunn11:
Help my portfolio, people.
My Zenith is now in red to the tune of 25m. Help!!!
UBA is 6.5m loss.

I think this is when you probably should forget your login details and let this storm pass, you will laugh lass lass

Northeastern:
Oil futures looking at a massive gap down; the postponement of the OPEC/Russia meeting from tomorrow to Thursday must have caused it.

This week should see a huge gain if that meeting results in a cut of at least 10m barrels.

. Oga NorthEastern. Im quite sceptical of dis move (cut) on oil price. 1st d probability of such cut without shale contributing to it is quite low. 2nd Shale contribution to the cut wld be limited if not totally hampered by its market structure. 3rd even if the cut materialise it wld only address d supply side while d problem with the demand side (coronavirus induced worldwide economic slowdown) persist. However all said i sincerely pray i am proven wrong for d sake myself and dis country

Coolcash1:


i don't understand when you say help. Are we the one responsible for the loss? That's stock business for you.

Funny how we respond to some jokes!!

RabbiDoracle:


Since when?

Hope you know this isn't the first oil price crash?

One happened between 2014 till 2016. That was when all the banks took serious impairments for years(till 2018 sef).

I believe they must have learnt their lessons and hedge their risk appropriately.

If you downgrade a country, the banks will have same downgrades as well. You can't have a bank do well when the country is downgraded.

The risk to Nigeria is oil price. Some of the casualties of the low oil price are starting to show up in the US shale industry. One oil and has firm declared bankruptcy last week. More to come in the US.

That is why Trump wants to broker peace between Russia and Saudi to limit the number of US Oil workers that will be unemployed.

The first casualty in Nigeria will be the oil service industry. They will lay lots of them off as IOCs start cost cutting, reduction in capital spending and streamlining of activities.

Nigerian banks wicked o. E be like say you never hear who dem do something before.

Not to mention that the retained earnings of Nigerian tier one banks is crazy. GT and Zenith both have close to 1 trillion in retained earnings. Those banks are pretty solid in spite of whatever is going on in the markets right now.

Seunn11:
Help my portfolio, people.
My Zenith is now in red to the tune of 25m. Help!!!
UBA is 6.5m loss.

Sir, firstly, these are paper losses. Good thing is that they are fundamentally sound stocks, so please don't sell. Additionally, if you do the maths, considering the dividend of N2.80 per share that Zenith paid and the N1 per share that UBA will pay, you'll see that it's not entirely a bad situation. Stay calm, you're not alone in this!

Krisuba:



Funny how we respond to some jokes!!

Oh, I never knew it was a joke. I fell for it...lol

Seunn11:
Help my portfolio, people.
My Zenith is now in red to the tune of 25m. Help!!!
UBA is 6.5m loss.

Nawao, don't sell o. I understand that you have only lost when you exit your position, if paper gain is a thing then paper loss is also a thing.

Seunn11:
Help my portfolio, people.
My Zenith is now in red to the tune of 25m. Help!!!
UBA is 6.5m loss.

I don see gate where I will apply as a Gate man.....
Please provide house address, I cant waste this opportunity

ositadima1:


Nawao, don't sell o. I understand that you have only lost when you exit your position, if paper gain is a thing then paper loss is also a thing.

There are some paper loss that are as good as realised loss in terms of permanence sha.

Those that bought IPOs of Transcorp, Japaul and VeritasKapital Assurance 12 years ago can attest

DeRuggedProf:


I don see gate where I will apply as a Gate man.....
Please provide house address, I cant waste this opportunity

Proff I saw this one before you. So I no need competition at d interview!!