If your money is in a Cowrywise Conservative Portfolio (a mutual fund), you should normally be able to withdraw it by first selling (liquidating) the investment. The proceeds are then moved to your Cowrywise Stash, after which you can withdraw the money to your bank account. If you've been trying toRead more
If your money is in a Cowrywise Conservative Portfolio (a mutual fund), you should normally be able to withdraw it by first selling (liquidating) the investment. The proceeds are then moved to your Cowrywise Stash, after which you can withdraw the money to your bank account. If you’ve been trying to withdraw directly from the investment without liquidating it first, the withdrawal won’t go through.
If you have already liquidated the investment and the withdrawal keeps failing, the most common reasons are:
The receiving bank had a temporary downtime.
Your bank has a transfer limit lower than the amount you’re withdrawing.
There is a temporary payment processor issue.
The bank details on your Cowrywise account need to be changed or updated
If you’ve retried several times and it still fails, contact Cowrywise Support through the in-app chat or their Help Centre with:
Your registered email address.
The withdrawal amount.
The date and time you attempted the withdrawal.
A screenshot of the error message or failed transaction.
They can investigate the specific reason your withdrawal isn’t going through.
Yes, it is still possible to recover your shares and claim your unclaimed dividends even after 15 years. Losing contact with your stockbroker does not mean you've lost your investments. Your shares are typically held in your name within Nigeria's securities system, not by the stockbroker personally.Read more
Yes, it is still possible to recover your shares and claim your unclaimed dividends even after 15 years. Losing contact with your stockbroker does not mean you’ve lost your investments. Your shares are typically held in your name within Nigeria’s securities system, not by the stockbroker personally.
Here’s what you should do.
Step 1: Gather any information you still have
Look for any old documents, such as:
Share certificates (if you have any).
Dividend warrants.
CSCS number.
CHN (Clearing House Number).
Purchase receipts.
The name of the stockbroker.
Your full name used when buying the shares.
Your phone number or address at the time.
Even if you don’t have your CSCS or CHN, don’t worry. Your full name and other personal details can often be used to trace your holdings.
Step 2: If you know your stockbroker
If the brokerage firm still exists, contact them and request a statement of your holdings. Give them:
Your full name.
Date of birth (if requested).
Old address.
Phone number used then.
Means of identification.
They should be able to search their records and help retrieve your CSCS account details.
Step 3: If the stockbroker no longer exists
Don’t panic.
Your shares are not lost just because the broker closed or you lost contact.
Visit another licensed stockbroking firm. Explain your situation and ask them to help trace your CSCS account and holdings. Licensed brokers can assist with recovering your investment records.
Step 4: If you find your CSCS number
Once you have your CSCS number, the process becomes much easier.
Your new broker can:
Retrieve all the shares registered under your CSCS account.
Show you the companies you own.
Help update your records.
Help process outstanding dividends.
Help register you for e-dividend payments so future dividends go directly into your bank account.
Step 5: Recover your unclaimed dividends
Unclaimed dividends are handled by each company’s registrar.
Your broker can tell you who the registrar is for each company.
You will normally complete:
An e-dividend mandate form.
A signature verification form (if required).
Identity verification.
Bank account verification.
Once approved, any dividends that are still payable can be credited to your bank account, subject to the applicable rules for those dividends.
My advice
Recover your CSCS account first.
Get a complete list of all your shareholdings.
Update your personal information (phone number, address, email, bank account, and next of kin if necessary).
Process all outstanding e-dividend registrations.
Review your portfolio before selling anything. Some shares bought 15 years ago may have appreciated significantly, while others may have paid bonus shares or undergone corporate actions.
Recovering the account first gives you a clear picture of what you own before making any investment decisions.
Yes, you can invest less than the current unit price because mutual funds allow fractional units. You don't need enough money to buy one full unit. As long as you meet the applicable minimum investment amount for your account, you can continue adding to your investment over time, and your units willRead more
Yes, you can invest less than the current unit price because mutual funds allow fractional units. You don’t need enough money to buy one full unit. As long as you meet the applicable minimum investment amount for your account, you can continue adding to your investment over time, and your units will keep increasing.
The statement simply means that Nigerian banks are being forced by the Central Bank of Nigeria (CBN) to keep a very large part of customers’ deposits with the CBN instead of using it for business activities like loans and investments. For example, if customers deposit ₦100 in a bank, the current 50%Read more
The statement simply means that Nigerian banks are being forced by the Central Bank of Nigeria (CBN) to keep a very large part of customers’ deposits with the CBN instead of using it for business activities like loans and investments.
For example, if customers deposit ₦100 in a bank, the current 50% CRR policy means the bank must keep ₦50 with the CBN and can only use the remaining ₦50.
The problem is that the money kept with the CBN usually does not generate interest or profit for the banks. Since banks normally make money by lending and investing deposits, locking away half of their funds reduces how much profit they could make.
Because Nigerian banks hold trillions of naira in deposits, the report believes they may be losing trillions yearly in potential earnings due to this policy.
The report also explains that although Nigerian banks still record high profits, investors value them lower than banks in countries like South Africa and Morocco because investors are worried about economic instability and strict regulations like the high CRR.
Why did the CBN create high CRR?
The CBN uses CRR to control:
inflation,
excess money in circulation,
and pressure on the naira.
By locking away bank money:
banks lend less,
people spend less,
inflation may reduce.
So the policy is mainly for economic control.
If you are a beginner with no experience, the best way to start investing in stocks is to follow a simple step-by-step approach. The goal at the beginning is not to rush into buying many stocks, but to understand the process and start small. First, you need to learn the basic idea of stocks. When yoRead more
If you are a beginner with no experience, the best way to start investing in stocks is to follow a simple step-by-step approach. The goal at the beginning is not to rush into buying many stocks, but to understand the process and start small.
First, you need to learn the basic idea of stocks. When you buy a stock, you are buying a small ownership in a company. If the company grows and becomes more profitable, the value of your shares may increase and you may also receive dividends.
The next step is to open a stock brokerage account with a licensed stockbroker on the Nigerian Exchange. A stockbroker is the professional or firm that helps you buy and sell shares. Some well-known Nigerian brokerage firms include Meristem Securities, Stanbic IBTC Stockbrokers, and CardinalStone Securities. After opening the account, you will receive a CSCS account number, which records and stores your shares electronically through the Central Securities Clearing System.
However, many beginners today prefer mobile investment apps because they are easier to navigate and faster to set up. Apps such as Bamboo, Trove, Chaka, and Afrinvest allow you to open an account from your phone, verify your identity, fund your wallet, and start buying stocks directly.
Once your account is ready, you can fund the account with the amount you want to invest. As a beginner, it is advisable to start with a small amount of money so you can learn without taking too much risk.
After funding your account, you can then choose a few strong companies to invest in. Beginners usually start with large and stable companies such as MTN Nigeria, Dangote Cement, or Zenith Bank because they are well established and have strong business operations.
When you decide which stock to buy, you place an order through your broker, and the shares will be credited to your CSCS account. From there, you simply monitor your investment and hold it for the long term, rather than trading frequently.
Finally, it is important to keep learning. As you invest, gradually study how to read financial statements, understand company performance, and follow market news. Over time, this knowledge will help you make better investment decisions and grow your portfolio steadily.
That's not all you need. The truth is "future is uncertain. " If you really want to invest you need to start learning. Buying on recommendation is good for beginners not the best. The best is beginner doing his/her due diligence on what to invest on. For beginners looking for long-term investments iRead more
That’s not all you need. The truth is “future is uncertain. ” If you really want to invest you need to start learning. Buying on recommendation is good for beginners not the best. The best is beginner doing his/her due diligence on what to invest on.
For beginners looking for long-term investments in Nigeria, the safest approach is to choose large, stable companies with strong profits and consistent dividends. These companies usually dominate their industries and have operated successfully for many years.
10 Nigerian stocks beginners you can consider for long-term investing
1. MTN Nigeria
This is the largest telecommunications company in Nigeria. It earns strong revenue from voice, data, and mobile money services. Its huge customer base makes it a relatively stable long-term investment.
2. Dangote Cement
Africa’s biggest cement producer. The company benefits from constant demand for construction and infrastructure, making it a strong long-term industrial stock.
3. Zenith Bank
One of the most profitable banks in Nigeria. It is well known for strong financial performance and consistent dividend payments.
4. Guaranty Trust Holding Company
A highly respected Nigerian banking group with strong management, stable profits, and regular dividends.
5. Access Holdings
A large financial group with operations across Africa. Its growth strategy and expanding presence attract long-term investors.
6. BUA Foods
A major food processing company producing sugar, flour, and pasta. Because these are everyday food products, demand remains steady.
7. Nestlé Nigeria
A leading food and beverage company producing household brands like Milo and Maggi. It has strong brand loyalty and consistent demand.
8. Nigerian Breweries
One of the largest beverage companies in Nigeria. It benefits from a wide distribution network and popular drink brands.
9. Okomu Oil Palm
A strong agricultural company focused on palm oil production. The rising demand for food and vegetable oil supports its growth.
10. Presco
A major palm oil producer in Nigeria. The company has shown strong earnings growth in recent years.
⚠️ This is not a financial advice. Do your due diligence before investing in any stocks.
Financial statements contain a lot of details, and some of them are mainly for accounting or regulatory purposes. What matters most is identifying the figures that show whether the company is profitable, stable, and financially disciplined. The first thing professionals examine is revenue and profitRead more
Financial statements contain a lot of details, and some of them are mainly for accounting or regulatory purposes. What matters most is identifying the figures that show whether the company is profitable, stable, and financially disciplined.
The first thing professionals examine is revenue and profit trends. It is not enough to see profit in one year; the important question is whether the company’s revenue and profit are growing consistently over several years.
Investors also look carefully at the quality of assets. It is important to understand what the assets consist of and whether they are productive assets that generate income, rather than assets that simply sit on the balance sheet without contributing to growth.
Finally, experienced investors review the notes to the financial statements and management discussion. These sections explain unusual numbers, major risks, legal issues, or changes in accounting methods. Sometimes the most important information about a company’s future risks is hidden in these explanations rather than in the main figures.
In practice, when analyzing many companies, professionals usually focus first on revenue growth, profitability, cash flow, and debt levels. If those indicators look strong, they then examine the rest of the statement for deeper understanding
A trust means you give your assets to a trusted manager to hold and invest for the benefit of someone else or for a specific purpose. The person who creates the trust is called the settlor, the person or institution that manages the assets is the trustee, and the person who benefits from the investmRead more
A trust means you give your assets to a trusted manager to hold and invest for the benefit of someone else or for a specific purpose. The person who creates the trust is called the settlor, the person or institution that manages the assets is the trustee, and the person who benefits from the investment is called the beneficiary.
A trust works through a clear legal process. First, the settlor creates the trust and transfers money, property, or other investments into it. Then the trustee, who could be a professional asset management firm or a financial institution, manages those assets according to the rules written in the trust document.
Imagine a farmer with many bags of yam whose children are still too young to manage them. He gives the yams to a trusted village elder and says, “Sell some every year and use the money to take care of my children.”
This explains a trust in investment. The farmer is the owner of the assets, the elder is the person trusted to manage them, and the children are the ones who benefit.
Trust structuring is important because the farmer must clearly state how the yams should be sold and how the money should be used. These instructions prevent misuse.
A trust works the same way. The owner gives assets to a trusted manager, who manages them and distributes the benefits to the intended people according to the owner’s instructions.
Firstly, you need to come to the understanding that market is unstable. Prices can go up and come down due to many factors. The temporary drop you are seeing now is normal market behavior.When you buy a stock and it rises quickly (like your Zenith Bank shares did), it is normal for the price to falRead more
Firstly, you need to come to the understanding that market is unstable. Prices can go up and come down due to many factors. The temporary drop you are seeing now is normal market behavior.When you buy a stock and it rises quickly (like your Zenith Bank shares did), it is normal for the price to fall or fluctuate afterward. It is called market correction. When a stock rises strongly, early investors sell to lock in their profits. For instance, You bought Zenith at ₦85 It rises to ₦115. When many people sell, price temporarily drops.This does not always mean the company is bad.
Ask yourself “Is the company still strong?”
Do your fundamental research. Check the company financial reports. Look out for these below
1.Check the revenue growth. If revenue keeps growing, it means the company is expanding.
2. Check profit. You must check profit after expenses. If profit rises almost every year then you can be confident.
3. Check the debt level. A company drowning in debt can crash even if sales are good.
4. Check dividend history. Dividends are profits paid to shareholders.
6. Check the Industry and Future Potential. Will people still need this product in 10 years? You need to consider this for long term holding.
As a new investor with a low risk appetite, the best approach is to focus on strong, well-known companies and hold them for a long time. These companies called blue-chip stocks. They are large, stable businesses that make consistent profits and usually pay dividends to their shareholders. Companies like MTN Nigeria, Dangote cement, etc
However, aside buying stocks you can consider other investment options with low risk such as Treasury Bills and Federal Government Bonds etc.
How Can I Withdraw Money From My Cowrywise Conservative Portfolio in Nigeria?
If your money is in a Cowrywise Conservative Portfolio (a mutual fund), you should normally be able to withdraw it by first selling (liquidating) the investment. The proceeds are then moved to your Cowrywise Stash, after which you can withdraw the money to your bank account. If you've been trying toRead more
If your money is in a Cowrywise Conservative Portfolio (a mutual fund), you should normally be able to withdraw it by first selling (liquidating) the investment. The proceeds are then moved to your Cowrywise Stash, after which you can withdraw the money to your bank account. If you’ve been trying to withdraw directly from the investment without liquidating it first, the withdrawal won’t go through.
If you have already liquidated the investment and the withdrawal keeps failing, the most common reasons are:
The receiving bank had a temporary downtime.
Your bank has a transfer limit lower than the amount you’re withdrawing.
There is a temporary payment processor issue.
The bank details on your Cowrywise account need to be changed or updated
If you’ve retried several times and it still fails, contact Cowrywise Support through the in-app chat or their Help Centre with:
Your registered email address.
The withdrawal amount.
The date and time you attempted the withdrawal.
A screenshot of the error message or failed transaction.
They can investigate the specific reason your withdrawal isn’t going through.
See lessHow Can I Recover My Unclaimed Dividends After Losing Contact With My Stockbroker in Nigeria?
Yes, it is still possible to recover your shares and claim your unclaimed dividends even after 15 years. Losing contact with your stockbroker does not mean you've lost your investments. Your shares are typically held in your name within Nigeria's securities system, not by the stockbroker personally.Read more
Yes, it is still possible to recover your shares and claim your unclaimed dividends even after 15 years. Losing contact with your stockbroker does not mean you’ve lost your investments. Your shares are typically held in your name within Nigeria’s securities system, not by the stockbroker personally.
Here’s what you should do.
Step 1: Gather any information you still have
Look for any old documents, such as:
Share certificates (if you have any).
Dividend warrants.
CSCS number.
CHN (Clearing House Number).
Purchase receipts.
The name of the stockbroker.
Your full name used when buying the shares.
Your phone number or address at the time.
Even if you don’t have your CSCS or CHN, don’t worry. Your full name and other personal details can often be used to trace your holdings.
Step 2: If you know your stockbroker
If the brokerage firm still exists, contact them and request a statement of your holdings. Give them:
Your full name.
Date of birth (if requested).
Old address.
Phone number used then.
Means of identification.
They should be able to search their records and help retrieve your CSCS account details.
Step 3: If the stockbroker no longer exists
Don’t panic.
Your shares are not lost just because the broker closed or you lost contact.
Visit another licensed stockbroking firm. Explain your situation and ask them to help trace your CSCS account and holdings. Licensed brokers can assist with recovering your investment records.
Step 4: If you find your CSCS number
Once you have your CSCS number, the process becomes much easier.
Your new broker can:
Retrieve all the shares registered under your CSCS account.
Show you the companies you own.
Help update your records.
Help process outstanding dividends.
Help register you for e-dividend payments so future dividends go directly into your bank account.
Step 5: Recover your unclaimed dividends
Unclaimed dividends are handled by each company’s registrar.
Your broker can tell you who the registrar is for each company.
You will normally complete:
An e-dividend mandate form.
A signature verification form (if required).
Identity verification.
Bank account verification.
Once approved, any dividends that are still payable can be credited to your bank account, subject to the applicable rules for those dividends.
My advice
Recover your CSCS account first.
Get a complete list of all your shareholdings.
Update your personal information (phone number, address, email, bank account, and next of kin if necessary).
Process all outstanding e-dividend registrations.
Review your portfolio before selling anything. Some shares bought 15 years ago may have appreciated significantly, while others may have paid bonus shares or undergone corporate actions.
Recovering the account first gives you a clear picture of what you own before making any investment decisions.
See lessCan I Invest Less Than the Unit Price in the Stanbic IBTC Equity Fund in Nigeria?
Yes, you can invest less than the current unit price because mutual funds allow fractional units. You don't need enough money to buy one full unit. As long as you meet the applicable minimum investment amount for your account, you can continue adding to your investment over time, and your units willRead more
Yes, you can invest less than the current unit price because mutual funds allow fractional units. You don’t need enough money to buy one full unit. As long as you meet the applicable minimum investment amount for your account, you can continue adding to your investment over time, and your units will keep increasing.
See lessWhat Does the CBN Cash Reserve Ratio Mean for Nigerian Banks and Investors?
The statement simply means that Nigerian banks are being forced by the Central Bank of Nigeria (CBN) to keep a very large part of customers’ deposits with the CBN instead of using it for business activities like loans and investments. For example, if customers deposit ₦100 in a bank, the current 50%Read more
The statement simply means that Nigerian banks are being forced by the Central Bank of Nigeria (CBN) to keep a very large part of customers’ deposits with the CBN instead of using it for business activities like loans and investments.
For example, if customers deposit ₦100 in a bank, the current 50% CRR policy means the bank must keep ₦50 with the CBN and can only use the remaining ₦50.
The problem is that the money kept with the CBN usually does not generate interest or profit for the banks. Since banks normally make money by lending and investing deposits, locking away half of their funds reduces how much profit they could make.
Because Nigerian banks hold trillions of naira in deposits, the report believes they may be losing trillions yearly in potential earnings due to this policy.
The report also explains that although Nigerian banks still record high profits, investors value them lower than banks in countries like South Africa and Morocco because investors are worried about economic instability and strict regulations like the high CRR.
Why did the CBN create high CRR?
The CBN uses CRR to control:
inflation,
excess money in circulation,
and pressure on the naira.
By locking away bank money:
See lessbanks lend less,
people spend less,
inflation may reduce.
So the policy is mainly for economic control.
How Can a Beginner Start Buying Stocks and Investing for the First Time?
If you are a beginner with no experience, the best way to start investing in stocks is to follow a simple step-by-step approach. The goal at the beginning is not to rush into buying many stocks, but to understand the process and start small. First, you need to learn the basic idea of stocks. When yoRead more
If you are a beginner with no experience, the best way to start investing in stocks is to follow a simple step-by-step approach. The goal at the beginning is not to rush into buying many stocks, but to understand the process and start small.
First, you need to learn the basic idea of stocks. When you buy a stock, you are buying a small ownership in a company. If the company grows and becomes more profitable, the value of your shares may increase and you may also receive dividends.
The next step is to open a stock brokerage account with a licensed stockbroker on the Nigerian Exchange. A stockbroker is the professional or firm that helps you buy and sell shares. Some well-known Nigerian brokerage firms include Meristem Securities, Stanbic IBTC Stockbrokers, and CardinalStone Securities. After opening the account, you will receive a CSCS account number, which records and stores your shares electronically through the Central Securities Clearing System.
However, many beginners today prefer mobile investment apps because they are easier to navigate and faster to set up. Apps such as Bamboo, Trove, Chaka, and Afrinvest allow you to open an account from your phone, verify your identity, fund your wallet, and start buying stocks directly.
Once your account is ready, you can fund the account with the amount you want to invest. As a beginner, it is advisable to start with a small amount of money so you can learn without taking too much risk.
After funding your account, you can then choose a few strong companies to invest in. Beginners usually start with large and stable companies such as MTN Nigeria, Dangote Cement, or Zenith Bank because they are well established and have strong business operations.
When you decide which stock to buy, you place an order through your broker, and the shares will be credited to your CSCS account. From there, you simply monitor your investment and hold it for the long term, rather than trading frequently.
Finally, it is important to keep learning. As you invest, gradually study how to read financial statements, understand company performance, and follow market news. Over time, this knowledge will help you make better investment decisions and grow your portfolio steadily.
See lessWhat Are the Best Stocks for Long-Term Investment for Beginners?
That's not all you need. The truth is "future is uncertain. " If you really want to invest you need to start learning. Buying on recommendation is good for beginners not the best. The best is beginner doing his/her due diligence on what to invest on. For beginners looking for long-term investments iRead more
That’s not all you need. The truth is “future is uncertain. ” If you really want to invest you need to start learning. Buying on recommendation is good for beginners not the best. The best is beginner doing his/her due diligence on what to invest on.
For beginners looking for long-term investments in Nigeria, the safest approach is to choose large, stable companies with strong profits and consistent dividends. These companies usually dominate their industries and have operated successfully for many years.
10 Nigerian stocks beginners you can consider for long-term investing
1. MTN Nigeria
This is the largest telecommunications company in Nigeria. It earns strong revenue from voice, data, and mobile money services. Its huge customer base makes it a relatively stable long-term investment.
2. Dangote Cement
Africa’s biggest cement producer. The company benefits from constant demand for construction and infrastructure, making it a strong long-term industrial stock.
3. Zenith Bank
One of the most profitable banks in Nigeria. It is well known for strong financial performance and consistent dividend payments.
4. Guaranty Trust Holding Company
A highly respected Nigerian banking group with strong management, stable profits, and regular dividends.
5. Access Holdings
A large financial group with operations across Africa. Its growth strategy and expanding presence attract long-term investors.
6. BUA Foods
A major food processing company producing sugar, flour, and pasta. Because these are everyday food products, demand remains steady.
7. Nestlé Nigeria
A leading food and beverage company producing household brands like Milo and Maggi. It has strong brand loyalty and consistent demand.
8. Nigerian Breweries
One of the largest beverage companies in Nigeria. It benefits from a wide distribution network and popular drink brands.
9. Okomu Oil Palm
A strong agricultural company focused on palm oil production. The rising demand for food and vegetable oil supports its growth.
10. Presco
A major palm oil producer in Nigeria. The company has shown strong earnings growth in recent years.
⚠️ This is not a financial advice. Do your due diligence before investing in any stocks.
See lessWhat Should You Look for in a Company’s Financial Statements Before Investing?
Financial statements contain a lot of details, and some of them are mainly for accounting or regulatory purposes. What matters most is identifying the figures that show whether the company is profitable, stable, and financially disciplined. The first thing professionals examine is revenue and profitRead more
Financial statements contain a lot of details, and some of them are mainly for accounting or regulatory purposes. What matters most is identifying the figures that show whether the company is profitable, stable, and financially disciplined.
The first thing professionals examine is revenue and profit trends. It is not enough to see profit in one year; the important question is whether the company’s revenue and profit are growing consistently over several years.
Investors also look carefully at the quality of assets. It is important to understand what the assets consist of and whether they are productive assets that generate income, rather than assets that simply sit on the balance sheet without contributing to growth.
Finally, experienced investors review the notes to the financial statements and management discussion. These sections explain unusual numbers, major risks, legal issues, or changes in accounting methods. Sometimes the most important information about a company’s future risks is hidden in these explanations rather than in the main figures.
In practice, when analyzing many companies, professionals usually focus first on revenue growth, profitability, cash flow, and debt levels. If those indicators look strong, they then examine the rest of the statement for deeper understanding
See lessWhat Is Trust in Investment, How Important Is Trust Structuring, and How Does It Work?
A trust means you give your assets to a trusted manager to hold and invest for the benefit of someone else or for a specific purpose. The person who creates the trust is called the settlor, the person or institution that manages the assets is the trustee, and the person who benefits from the investmRead more
A trust means you give your assets to a trusted manager to hold and invest for the benefit of someone else or for a specific purpose. The person who creates the trust is called the settlor, the person or institution that manages the assets is the trustee, and the person who benefits from the investment is called the beneficiary.
A trust works through a clear legal process. First, the settlor creates the trust and transfers money, property, or other investments into it. Then the trustee, who could be a professional asset management firm or a financial institution, manages those assets according to the rules written in the trust document.
Imagine a farmer with many bags of yam whose children are still too young to manage them. He gives the yams to a trusted village elder and says, “Sell some every year and use the money to take care of my children.”
This explains a trust in investment. The farmer is the owner of the assets, the elder is the person trusted to manage them, and the children are the ones who benefit.
Trust structuring is important because the farmer must clearly state how the yams should be sold and how the money should be used. These instructions prevent misuse.
A trust works the same way. The owner gives assets to a trusted manager, who manages them and distributes the benefits to the intended people according to the owner’s instructions.
See lessWhich Low-Risk Stocks Should a Beginner Invest in Nigeria and Are Zenith Bank Shares Still a Good Buy?
Firstly, you need to come to the understanding that market is unstable. Prices can go up and come down due to many factors. The temporary drop you are seeing now is normal market behavior.When you buy a stock and it rises quickly (like your Zenith Bank shares did), it is normal for the price to falRead more
Firstly, you need to come to the understanding that market is unstable. Prices can go up and come down due to many factors. The temporary drop you are seeing now is normal market behavior.When you buy a stock and it rises quickly (like your Zenith Bank shares did), it is normal for the price to fall or fluctuate afterward. It is called market correction. When a stock rises strongly, early investors sell to lock in their profits. For instance, You bought Zenith at ₦85 It rises to ₦115. When many people sell, price temporarily drops.This does not always mean the company is bad.
Ask yourself “Is the company still strong?”
Do your fundamental research. Check the company financial reports. Look out for these below
1.Check the revenue growth. If revenue keeps growing, it means the company is expanding.
2. Check profit. You must check profit after expenses. If profit rises almost every year then you can be confident.
3. Check the debt level. A company drowning in debt can crash even if sales are good.
4. Check dividend history. Dividends are profits paid to shareholders.
5.Check P/E ratio. P/E = Share Price ÷ Earnings per Share
Low P/E → stock may be undervalued
High P/E → stock may be expensive
6. Check the Industry and Future Potential. Will people still need this product in 10 years? You need to consider this for long term holding.
As a new investor with a low risk appetite, the best approach is to focus on strong, well-known companies and hold them for a long time. These companies called blue-chip stocks. They are large, stable businesses that make consistent profits and usually pay dividends to their shareholders. Companies like MTN Nigeria, Dangote cement, etc
However, aside buying stocks you can consider other investment options with low risk such as Treasury Bills and Federal Government Bonds etc.
See lessHow Can I Perform Technical Analysis on Nigerian Stocks Using Price, Volume, and Chart Patterns?
Thanks man GTCO
Thanks man
See lessGTCO