This is a common question from new investors:

“If I invest ₦100,000 in shares, how much dividend can I receive?”

The answer depends on the company’s dividend yield.

Different companies pay different amounts, so there is no fixed dividend for ₦100,000.

Here is a simple example:

– 3% dividend yield = about ₦3,000 per year
– 5% dividend yield = about ₦5,000 per year
– 8% dividend yield = about ₦8,000 per year
– 10% dividend yield = about ₦10,000 per year
– 15% dividend yield = about ₦15,000 per year

An example;

If you invest ₦100,000 in a company with a 10% dividend yield:

₦100,000 × 10% = ₦10,000

So, you could receive approximately ₦10,000 in dividends in a year, assuming the company maintains that dividend.

Dividends are not guaranteed.

A company can increase its dividend, reduce it, or decide not to pay one.

Dividend yield can also change when the company’s share price changes.

So don’t choose a stock simply because it has a high dividend. Look at the company’s profit, financial health, debt, growth, and history of paying dividends.

You can potentially make money from shares in two main ways:

Capital Growth: Your shares increase in value.

Dividends: The company shares part of its profit with you.

And when you reinvest your dividends, your investment can potentially grow even faster over the long term.