In a market that recently celebrated crossing the N100 trillion valuation milestone, Nigerian investors are increasingly seeking stability through reliable income streams. According to a detailed portfolio analysis by Meristem Research for the 2025 financial year, dividend-paying stocks offer a compelling strategy to balance risk and generate consistent returns amidst potential volatility.
Why Dividend Investing is Gaining Momentum
The allure of regular cash payouts is not limited to retirees. For all types of investors, dividends provide a foundation for total returns, reducing reliance solely on share price appreciation. This approach is particularly attractive as the Nigerian Exchange (NGX) demonstrates robust growth, with the All-Share Index posting a significant 48.12% year-to-date gain as of late December 2025.
Meristem's latest report, highlighted by BusinessDay, identifies companies with a proven history of steady dividends, strong fundamentals, and room for capital growth. The selection spans critical sectors including banking, industrials, consumer goods, and agribusiness.
Meristem's Top Dividend Picks for Steady Payouts
Here is a breakdown of the ten stocks highlighted for their income-generating potential and financial resilience.
Zenith Bank Plc maintains its reputation as a dividend powerhouse. Its strong earnings and disciplined payout policy position it for an estimated yield exceeding 9% for FY 2025, coupled with potential share price growth.
GTCO Plc (Guaranty Trust Holding Company) is favoured by investors seeking a blend of income and capital appreciation. The company is expected to deliver solid dividend yields alongside prospects for share price upside.
United Capital Plc stands out for its high multi-year average dividend yield. Its inclusion is based on a dependable track record of returning cash to shareholders.
Fidelity Bank Plc has shown a notable trend of increasing its dividend allocations while sustaining healthy earnings. Its appeal is growing among income-focused portfolios, especially after meeting the Central Bank of Nigeria's recapitalisation target ahead of schedule.
Stanbic IBTC Holdings offers a combination of attractive yield and stability, backed by a diversified financial services model and a strong balance sheet that supports dividend sustainability.
Dangote Cement Plc serves as a defensive income play. While its yield may not be the highest, its consistent dividend culture and market dominance provide reliable returns.
Lafarge Africa (WAPCO) earns its spot due to its solid industrial footprint and anticipated valuation gains, offering investors a mix of income and potential share price upside.
Access Holdings Plc is building a stronger dividend profile, indicating a promising trajectory for future payouts and making it a stock to watch for dividend growth.
Okomu Oil Palm Plc is a perennial dividend payer in the agro-sector, supported by strong pricing power and high-quality earnings, making it a standout for portfolio diversification.
Presco Plc rounds out the list with its niche in palm oil production and a steady dividend history, appealing to more conservative income strategies.
The Strategic Takeaway for Investors
Successful dividend investing involves more than just chasing the highest yield. It requires selecting companies that combine consistent payout histories with solid earnings and the capacity to reward shareholders over the long term. The stocks identified by Meristem Research for the 2025 financial year are presented as candidates that tick these essential boxes, offering a pathway to steady income and potential growth as the market evolves.
This focus on income-generating assets comes at a time when over 40 listed companies on the NGX delivered returns exceeding 100% to investors in 2025, showcasing the vibrant opportunities within Nigeria's capital market.
