Benefits of investing in stocks
AutoThis represents the interest on your investment after one year. In 2007 First Bank Nigeria gave N1 dividend, Zenith Bank gave N1 dividend while Flour Mill Nigeria gave 90k dividend.
For example, since Zenith Bank declares a dividend per share of N1, it means that you are entitled to N10,000 if you own 10,000 units of Zenith Bank shares. The N10,000 will be posted to you as dividend security (net of withholding tax).
I read the story of a man who got a dividend of four million naira from the dividend paid by First Bank Nigeria in the year 2006. This man had four million units of First Bank shares in 2005 when he retired. During all the years of his work, he did not invest in any other stock but First Bank stock and Union Bank stock. In the year 2006, when First Bank Nigeria gave a bonus of one for one (1:1), that is, for each share that he has, they will give him another. The total shares held by the man doubled to 8 million units. First Bank also declared a dividend of N1 per share, so the old man went home with N4 million dividends. No matter where he is now, financially, he can make it through the Nigerian stock market. You can build your wealth through the market.
bonus actions
These are fully paid-up additional shares from the company’s reserves to existing investors in proportion to their current stake in the company.
BONUS STORY OF THE FIRST BANK OF NIGERIA
Year – shares owned – bonus ratio – free shares – new shares
1992 10,000 units – – 10,000 units
1993 10,000 units 1 by 3 3,333 13,333 units
1994 13,333 units 1 by 1 13,333 26,666 units
1995 26,666 units 1 by 4 6,666 33,332 units
1996 33,332 units 1 by 4 8,333 41,665 units
1997 – – – –
1998 41,665 units 1 by 4 10,416 52,081 units
1999 52,081 units 1 by 4 13,020 65,101 units
2000 65,101 units 1 by 4 16,275 81,376 units
2001 81,376 units 1 by 4 20,344 101,720 units
2002 101,720 units 1 by 4 25,430 127,150 units
2003 127,150 units 1 by 5 25,430 152,580 units
2004 152,580 units 1 for 8 19,072 171,652 units
2005 171,652 units 1 by 6 28,608 200,260 units
2006 200,260 units 1 by 1 200,260 400,520 units
In 1992, First Bank shares were N2. If you had invested twenty thousand naira (N20.00) in 1992 to buy 10,000 units, the bonus history to date shows that it will be worth more than twenty eight million naira as of March. , 2006 when First Bank shares were sold for N72. Additionally, bond history shows that the 10,000 units of First Bank shares purchased in 1992 have increased to 400,520 units. What a great combination!
capital appreciation
Enjoy capital appreciation as the market price of the shares purchased increases. In the past two years, the share prices on the floor of the Nigerian stock exchange have witnessed tremendous growth. In 1992 First Bank was N2 and in the first quarter of 2006 it was renumbered as N72. What a great increase! Japaul oil & Maritime was 0.99k in December 2006 and in October 2007 it went up to N6.02k.
Price movement analysis for 5 years.
2003 – 2007
RT Brisco N2.8 N32
Bench GT N5.2 N36.19
UACN N4.1 N40.19
Glaxo-Smith-Kline N3.3 N23
Nestle Nigeria shares were sold for N76 in March 2003 and the highest price in 2006 was N254.1, which means that 10,000 units of Nestle shares in March 2003 at N76 per unit will be worth N760,000. If you now decide to sell when the price was N254.1 in 2006, you will sell it for N2,541,000. That is, 10,000 x N254.1 = N2,541,000. You are already a millionaire. Don’t forget that you only invested N760,000 in buying the shares. You are now earning a profit of over N1.7 million naira. What a smart way to earn money and make your money work for you.
loan guarantee
Your shares can be used as collateral to obtain a loan from the bank. If you need a loan for a capital project or to expand your business, your shares could be all you need to get over the pain of the endless search for money.
Protect your money from inflation
Your investment in the stock market is a means of protecting your money from the ravages of inflation. Your money can continue to work for you without depreciating in value.