Please, how do one go about this? Please, information is needed.

shogbenga:
Pls I received this from stanbic regarding my bond investment. Could the gurus kindly explain what nominal, consideration, clean price and dirty price mean. I want to be sure that the deal is in my favour. Thanks

WHAT?!!!!!!!!!!!!!!!!!!!!!

HeliosHay:


For 17 years (2019 - 2036)...payments to be made twice a year

I think the first coupon payment of N247,946.5 will be made in September 2019, followed by another in March 2020

If first paymnet will be made in September, how come second payment is made in 2020?
Will N247,946.5 be the payment made twice a year?
Will he get his 4m back after the 17yrs?
Thank you for answers in anticipation.

17yrs*495,893 = 8,430,181

aremso:


Oga sir, you get mind ooo for 17yrs? If I invest 4m in zenith bank share @ 18.4 the dividend alone for 17yrs will be around 8m + without reinvesting the dividend to compound it if I reivest for more dividend the it will be about 13m. I choose zenith cos that is the life of JO where he gets close to 10billn as dividend every yr so we must chop it together.

DaBogu:
No, it's not ok.

Kindly expatiate. Is it too low? Because I actually filled for the primary market. And for 91 days. Don't know what happened but hope to visit the branch or call their HO.

DaBogu:
WHAT?!!!!!!!!!!!!!!!!!!!!! If first paymnet will be made in September, how come second payment is made in 2020?
Will N247,946.5 be the payment made twice a year?
Will he get his 4m back after the 17yrs?
Thank you for answers in anticipation.

It's FGN Bond so coupon payments are bi-annual.

A Mar 2036 FGN Bond has an annual payment calendar that starts in March (of one year) and ends in March (the following year)...since payment is bi-annual, first payment came in March 2019 and the next comes 6 months later in September 2019. He bought in July so he'll only be able to capture the September 2019 coupon...next payment after September 2019 will be March 2020.

FGN Savings bond, on the other hand, pay every quarter (but they only have 2 and 3-year tenures)

Yes. In a calendar year, he'll make N495,893 (Two payments of N247,946.5)

In Mar 2036 when the FGN Bond expires he'll get his initial principal investment back

DaBogu:
17yrs*495,893 = 8,430,181

Still low sir 4m for zenith stocks @ 18.4 gives 217,391 they give dividend of #2.8 *217,391*17yrs is about 10m no reinvesting involved.

aremso:


Still low sir 4m for zenith stocks @ 18.4 gives 217,391 they give dividend of #2.8 *217,391*17yrs is about 10m no reinvesting involved.

He can lose a significant portion of his capital investing in shares.

The year to date return on Zenith Bank Stocks is -9.41%. Granted dividend yield is 15.14% it makes no sense losing 9% of my principle just to get 15% dividend when i can keep my entire principle safe and still make 12.4% with Bonds

The entire Nigerian stock market has been down so far this year..for people who are after steady earnings with capital preservation it's not a great move.

My opinion sha

aremso:


Oga sir, you get mind ooo for 17yrs? If I invest 4m in zenith bank share @ 18.4 the dividend alone for 17yrs will be around 8m + without reinvesting the dividend to compound it if I reivest for more dividend the it will be about 13m. I choose zenith cos that is the life of JO where he gets close to 10billn as dividend every yr so we must chop it together.

Not forgetting the fact that Zenith Bank increases dividend payout every year, in 17 years time the dividend declared would have increased to more than N6.00 per share and the tremendous upside potentials of the company.

No

HeliosHay:


He can lose a significant portion of his capital investing in shares.

The year to date return on Zenith Bank Stocks is -9.41%. Granted dividend yield is 15.14% it makes no sense losing 9% of my principle just to get 15% dividend when i can keep my entire principle safe and still make 12.4% with Bonds

The entire Nigerian stock market has been down so far this year..for people who are after steady earnings with capital preservation it's not a great move.

My opinion sha

The market is currently depressed. If you know, you know.

Those who know are in accumulation mode,


I use my dividends to buy different tranches of Treasury bills Sha, about 6 to 10 tranches in a year.

HeliosHay:


It's FGN Bond so coupon payments are bi-annual.

A Mar 2036 FGN Bond has an annual payment calendar that starts in March (of one year) and ends in March (the following year)...since payment is bi-annual, first payment came in March 2019 and the next comes 6 months later in September 2019. He bought in July so he'll only be able to capture the September 2019 coupon...next payment after September 2019 will be March 2020.

FGN Savings bond, on the other hand, pay every quarter (but they only have 2 and 3-year tenures)

Yes. In a calendar year, he'll make N495,893 (Two payments of N247,946.5)

In Mar 2036 when the FGN Bond expires he'll get his initial principal investment back

Sir, do you have information on the bolded?

I thought it was Secondary market

Breadfruit:


Kindly expatiate. Is it too low? Because I actually filled for the primary market. And for 91 days. Don't know what happened but hope to visit the branch or call their HO.

DaBogu:
Sir, do you have information on the bolded?

You can get all the information you need on FGN Savings Bond via the Debt Management Office website

https://www.dmo.gov.ng/fgn-bonds/savings-bond

emmanuelewumi:
No



The market is currently depressed. If you know, you know.

Those who know are in accumulation mode,


I use my dividends to buy different tranches of Treasury bills Sha, about 6 to 10 tranches in a year.

My principal aim with large investments is capital preservation so Stocks aren't attractive to me at the moment.

It may appeal to others no doubt

HeliosHay:


He can lose a significant portion of his capital investing in shares.

The year to date return on Zenith Bank Stocks is -9.41%. Granted dividend yield is 15.14% it makes no sense losing 9% of my principle just to get 15% dividend when i can keep my entire principle safe and still make 12.4% with Bonds

The entire Nigerian stock market has been down so far this year..for people who are after steady earnings with capital preservation it's not a great move.

My opinion sha

Lol for those that hates to take risk. Am currently sourcing for fund to buy 1m units of zenith I will get net dividend of 2.250m *17ys that is about 38m no capital appreciation is inclusive, no reinvesting inclusive. Just know the right time to enter and exit

aremso:



Lol for those that hates to take risk. Am currently sourcing for fund to buy 1m units of zenith I will get net dividend of 2.250m *17ys that is about 38m no capital appreciation is inclusive, no reinvesting inclusive. Just know the right time to enter and exit

One man's food is another man's poison.

As I said before, my objective with large investments is capital preservation with a steady 0% tax income.

TB and especially bonds are suitable investment vehicles that can help me to achieve this objective.

The dividend you earn with shares are taxable...and capital preservation isn't guaranteed.

So shares are not suitable investment vehicles for me....it doesn't mean they're bad

HeliosHay:


One man's food is another man's poison.

As I said before, my objective with large investments is capital preservation with a steady 0% tax income.

TB and especially bonds are suitable investment vehicles that can help me to achieve this objective.

Shares are not....it doesn't mean they're bad

Finito Sir!

aremso:



Lol for those that hates to take risk. Am currently sourcing for fund to buy 1m units of zenith I will get net dividend of 2.250m *17ys that is about 38m no capital appreciation is inclusive, no reinvesting inclusive. Just know the right time to enter and exit

Interim and final dividend declared was N2.80k, do your maths again

emmanuelewumi:







Interim and final dividend declared was N2.80k, do your maths again

Just did on the final

Returns on Treasury bills should come down to as low as 8% by year end.

I remember getting as low as 6% from the secondary about 4 years ago or thereabout.

Low interest rates and single digit returns on fixed income investment is good for businesses and the economy.

shogbenga:
Pls I received this from Stanbic regarding my bond investment. Could the gurus kindly explain what nominal, consideration, clean price and dirty price mean? I want to be sure that the deal is in my favour. Thanks

I think they mean the following:
Clean price- price which doesn't include accrued interest i.e. ex-interest
Dirty price- price which includes accrued interest or i.e. with interest
Consideration should be how much you paid.
Nominal value generally means face value. I think it is what you'll get paid upon maturity.

You might as well email them asking for an explanation of those terms. Don't forget to share the feedback here.

shogbenga:
How much would I be entitled to annually. Thanks

I'm curious. You bought a bond without asking this question
It would appear you didn't really understand what you were getting into.

emmanuelewumi:
Returns on Treasury bills should come down to as low as 8% by year end.

I remember getting as low as 6% from the secondary about 4 years ago or thereabout.

Low interest rates and single digit returns on fixed income investment is good for businesses and the economy.

Sir welcome back

ahiboilandgas:
Sir welcome back

I am always here, I come here every day although in ghost mode.


I think bond is the next bet for investors who strictly invest only on treasury bills.

Commercial papers is also another route, but they will need a minimum investment of N5 million or better still they are invest in mutual funds which are strictly for fixed income investment.

olujaidi:


I'm curious. You bought a bond without asking this question
It would appear you didn't really understand what you were getting into.

I had an idea. I was told the coupon and the yield (which was higher) and I immediately calculated what should be due to me but when I received the certificate, it was only the coupon that was quoted. So I wanted to be sure to clear my doubt

It's good I asked because what I got from my calculation was higher than what someone in this forum gave. I based my calculation on the yield

Onyi2728:
Meanwhile. this is the rate from Access bank as of yesterday. Does anyone knows which bank has something better. I also email zenith bank, awaiting their rates as well.


TENOR MATURITY RATE
73 DAYS October 03, 2019 8.50%
94 DAYS October 24, 2019 9.00%
178 DAYS January 16, 2020 10.00%
206 DAYS February 13, 2020 10.35%
227 DAYS March 05, 2020 10.75%

Most banks seem to have reduced their top rate to 10.75% max; you can find up to 11.75% in the I-Invest app. However, if you are looking for longer tenures:

Unity has 10.75% for tenures close to 364days
UBA had 10.7% for 364 days on 18th July, just after the last auction
Wema has 10.5% for 323 days today, 24th July
UBA had 10.5% for 315 days on 18th July

We don't have rates for Fidelity, FCMB or GTB after the last primary market auction, but they often have very competitive rates. We do have today's rates for Zenith, ranging from 8% to 10%.

We have only talked about tenors close to 364days above, find these and more here: http://comparedbest.com/ng/best-nigerian-treasury-bill-rates.html

I’m planning to bid in the next primary market, I hope the rates don’t drop or else it’ll be bad for the rest of the year

aremso:



Lol for those that hates to take risk. Am currently sourcing for fund to buy 1m units of zenith I will get net dividend of 2.250m *17ys that is about 38m no capital appreciation is inclusive, no reinvesting inclusive. Just know the right time to enter and exit

Oga. 1m unit of zenith bank stock will be close to N19m, assuming u receive a dividend of 2..250m for 17yrs. U will be making close to 35m. Now, what is the assurance that ur zenith bank stock wont fall to 5naira in 17yrs time with the way they manipulate stock market. What is ur assurance that zenith bank wont be bought over by another bank in the next 17yrs to come, what is ur assurance that zenith bank stock will increase in order to give u capital appreciation. As far as am concerned, stock is never a good way of capital appreciation. Remember u will pay tax on ur dividend, pay brokers fees every yr also. Etc

emmanuelewumi:





I am always here, I come here every day although in ghost mode.


I think bond is the next bet for investors who strictly invest only on treasury bills.

Commercial papers is also another route, but they will need a minimum investment of N5 million or better still they are invest in mutual funds which are strictly for fixed income investment.

oga your analysis where top notch ,matured I always read them cos of long term experience ,I meant the chairman of share holder in Nigeria and advice me to buy some stock before the appointment of the ministers I did so hoping for the best

L

ahiboilandgas:
oga your analysis where top notch ,matured I always read them cos of long term experience ,I meant the chairman of share holder in Nigeria and advice me to buy some stock before the appointment of the ministers I did so hoping for the best

I am humbled, thank you for the kind words. We are currently in the period of wealth transfer, those who know are very few.

emmanuelewumi:
L


I am humbled, thank you for the kind words. We are currently in the period of wealth transfer, those who know are very few.

sir can u explain more..i know most of the stock are down like onando ,and forte oil and top teir banks .....infact I meet the chairman in London he liquidated some asset(house) to come invest in stocks ,he advice me to buy some stock as a young man now that market is down ...i made some cool cash in ashaka cement b4

needful:


Oga. 1m unit of zenith bank stock will be close to N19m, assuming u receive a dividend of 2..250m for 17yrs. U will be making close to 35m. Now, what is the assurance that ur zenith bank stock wont fall to 5naira in 17yrs time with the way they manipulate stock market. What is ur assurance that zenith bank wont be bought over by another bank in the next 17yrs to come, what is ur assurance that zenith bank stock will increase in order to give u capital appreciation. As far as am concerned, stock is never a good way of capital appreciation. Remember u will pay tax on ur dividend, pay brokers fees every yr also. Etc

If zenith gets to #5 then there is a major ressesion, the 2.250m is net of tax. Stock investment is not faint hearted investors and not for risk haters. Mind you I can invest in any stock then go and sleep once I qualified for dividend payments I pulled out to TB eg I bought zenith for 20+ around January this year, sold for 22.7 and put the money in tb. This is after dividend qualification. Stock investment is not for everyone but that is the sure way for me to increase my net worth. If am still in the stock I would have loose about 1m so I know the time to enter and when to exist so by God grace the issue of another bank taking over will not meet me there.