A shareholder who invested N1m in Nigerian Aviation Handling Company Plc at the beginning of 2021 has earned more than 733 per cent through consistent cash dividends, with the current market value of the N1m investment at more than N120.8m.
A five-year dividend analysis from yesterday showed that a N1m investment in NAHCO in January 2021 has earned N8.33m in cash dividends, representing a 733.2 per cent increase over the initial investment.
Particularly, the shareholder will receive a total of N3.24m as cash dividends at the weekend as shareholders of NAHCO meet to review the operational report and accounts of the leading aviation ground handling and logistics group.
NAHCO opened 2021 at N2.30 per share, implying that a N1m investment resulted in about 432,000 shares after deduction of transaction costs.
By the third year, the N1m shareholder has recovered his initial cost and earned an extra N1m. As NAHCO continued to scale new operational heights, dividends rose significantly over the next two years, adding more than N6m.
Since 2015, NAHCO has maintained an unbroken dividend record, ensuring shareholders earn income from their investments even during difficult operational periods, such as the 2020 COVID pandemic. Over the past five years, the company has continuously increased cash payouts, aligning profit growth with shareholders’ return.
In 2021, the company paid a dividend per share of 41 kobo, representing a total income of N177,120 for the N1m shareholder. In 2022, the company distributed a dividend per share of N1.20, alongside a bonus issue of one share for every five shares held. This resulted in a total income of N518.4m and additional bonus shares of 86,400 shares for the N1m shareholder, increasing his shareholding to 518,400 shares.
By 2023, the company doubled cash payouts to N2.54 per share, representing annual income of N1.317m for the model shareholder. Dividend payout doubled again to N5.94 per share in 2024, amounting to annual income of N3.08m.
The board of NAHCO has recommended payment of a dividend per share of N6.25 and a bonus issue of one new share for every seven shares held as returns for the 2025 business year. The ex-dividend date, during which the register was marked for qualified shareholders, was 4 May 2026, with a payment date of 15 May 2026, immediately after the annual general meeting of the company.
The N1m model shareholder would receive a total cash dividend of N3.24m and additional bonus shares of 74,057 shares for the 2025 business year. These bring total dividend income since 2021 to N8.33m, with the total number of shares rising from the initial 432,000 shares to 592,457 shares.
NAHCO’s share price closed the weekend at N203.95 after it had been technically adjusted by the Nigerian Exchange for the cash dividend and bonus issue.
At today’s opening price of N203.95 per share, the N1m model investment is currently valued at N120.83m, representing an increase of 11,983 per cent.
Market analysts said NAHCO has a notable track record of paying dividends annually without interruption, which has sustained investor confidence over the years.
Analysts noted that dividend payout has a strong correlation with the operational fundamentals of a company, citing NAHCO’s upward financial performance over the years.
Key extracts of the audited report and accounts of NAHCO for the year ended 31 December 2025 showed that total revenue grew 21.8 per cent from N53.54bn in 2024 to N65.21bn in 2025. Gross profit increased from N33.08bn to N38.61bn. Operating profit rose 25 per cent from N19.84bn in 2024 to N24.84bn in 2025.
The report also showed that profit before tax jumped 30 per cent to N24.256bn in 2025 as against N18.702bn in 2024. Profit after tax grew 39.91 per cent from N12.865bn in 2024 to N17.999bn in 2025. Earnings per share rose 40 per cent from N6.60 in 2024 to N9.24 in 2025.
The group’s balance sheet also emerged stronger, with total assets increasing from N46.95bn in 2024 to N53.88bn in 2025. Shareholders’ funds rose 32 per cent from N20.075bn to N26.497bn.
Financial ratios indicated that the company’s performance was driven by steady market growth and disciplined cost management. Operating profit margin improved from 37.06 per cent in 2024 to 38.09 per cent in 2025. Pre-tax profit margin increased from 34.93 per cent to 37.2 per cent. Return on total assets improved by more than five percentage points from 39.83 per cent to 45.02 per cent.
Market analysts said stocks like NAHCO underscore the inclusive wealth-creation potential of the capital market, providing investors across the entire strata of large, high-net-worth institutional investors to individual and retail investors with reliable preservation and growth.
Analysts noted that with a free float of 56.68 per cent, which indicates that more than half of NAHCO’s shares are in the hands of the general investing public, NAHCO’s performance directly and indirectly contributes to the nation’s wealth distribution and well-being.
Minority individual retail investors account for more than one-third of transactions at the Nigerian equities market, underlining the significant relationship between the market and ordinary Nigerians.
More than 1.1 billion ordinary shares of NAHCO are in the hands of individual retail investors, one of the largest inclusive spreads among quoted companies. The large free float also makes NAHCO’s share pricing trend to be most reflective of the general investors’ sentiment, as the extent of free float has a subtle influence on the price discovery of a stock.
NAHCO Group is a well-diversified conglomerate with interests in aviation ground handling, airport management, aviation training, free trade zones, commodity exports, and energy solutions. In addition to its main ground handling business and cargo handling business, other subsidiaries include Mainland Cargo Options Limited, Nahco Free Trade Zone Limited, NAHCO Power Solutions Limited, NAHCO Management Services, NAHCO Travels & Hospitality Limited, NAHCO Aviation Academy and NAHCO Commodities Limited.
