One of the strongest forces shaping investor sentiment in the Nigerian stock market is dividend payment. Beyond being a simple cash reward, dividends serve as a powerful signal of earnings quality, balance-sheet strength, and management confidence and can swing a stock’s outlook positively.
As of the end of the third quarter (Q3) of the 2025 financial year (FY2025), about 21 listed companies had declared interim and/or final dividends totaling about N581 billion from a combined profit after tax (PAT) of N3.7 trillion, according to data from Nairametrics Research.
This represents an aggregate payout ratio of roughly 15.7% signaling strong shareholder return momentum across key sectors.