Toor, so this was my reasoning: I looked for companies with double-digit earnings yields. The formula for that is profit after tax divided by market value. You can think of it like this: if a company is valued at ₦5 per share and it makes a profit (called earnings per share)

The part of the profit that gets distributed is called dividends. Some companies distribute all their profits as dividends, while others only pay out a certain percentage. The reason why some companies might not pay out all their earnings is because they need to conserve cash

If the company is growing quite well revenue-wise, it makes sense for them to keep investing to capture more of that growth. Higher revenue growth in the future may lead to higher future profits and even higher dividends.

I then ranked these double-digit earnings yields from highest to lowest. More importantly, I compared the yields with the current one-year NTB yields (which is an opportunity cost) in the secondary market. I really liked some of the things I saw.

Note: In general, the earnings yield (or P/E) of these companies should be viewed with other factors in mind. Those include things like the growth rate of earnings, corporate governance, financial risk, competitive positioning, and regulatory risks.

Wema Bank, my usual darling, is at the top. The share price dropped sharply over the past week. There's an inefficiency going on there, which has to do with the expected listing of new shares from their recent rights issue. The explanation is a bit technical, but I expect the

Stanbic and GTCO had good numbers in Q2 2025. When I paired those numbers with the current market value of the companies, I saw sweet things. And I didn't even do much. I didn't forecast anything; I just annualised what they already did.

Custodian and NEM are my two most favourite companies in the insurance space, fundamental-wise - in terms of their corporate governance and financial performance. (AXA Mansard is a close third). I like their valuation, and they're going to be my two exposures to the insurance

Lafarge, Nascon, Cadbury, and Beta Glass are already familiar names. My thesis on them remains (check my previous commentaries on them).

Aradel and MTNN recently went through some structural changes. MTNN implemented price increases that didn't fully show up in their H1 2025 numbers, and Aradel completed some acquisitions that also didn't fully show up in their H1 2025 numbers.

We'd revisit soon.

In terms of stock liquidity, the daily average trade of the companies is as follows: The liquid ones ☞ GTCO: ₦1.6bn ☞ MTNN: ₦778mm ☞ Aradel: ₦623mm ☞ Lafarge: ₦258mm The fairly liquid ones ☞ Nascon: ₦136mm ☞ Wema Bank: ₦85mm ☞ Cadbury: ₦75mm The 'not-so-liquid

NEM, for instance, is not liquid. But if your investment outlay is way less than ₦15mm, you can still enter and get out fairly easily.

Selah✌🏻✌🏻✌🏻✌🏻

If you got to the finish line, I hail you. Always noteNote... 🎯🎯🎯🎯 https://x.com/Rufyb/status/197...

@Rufyb Spot on analysis as usual. PS: To make for a stronger investment decision, I think you should also compare the one-year Treasury bill rate with the dividend payout ratio. Historical/ previous year payout

@Rufyb Did you factor in the Wema rights issue?

@Rufyb Please which app allowed you do the comparison ?

@Rufyb Na the simple education matter.. like this now person don know one way to at least look for opportunity.. well done brother

@Rufyb Thanks for sharing sir.

@Rufyb 🫡 🫡

@Rufyb Boss can you please look into TIP and Sovrenins using your metrics?

@Rufyb Omo, you really have passion for this kind of analysis o. I can't imagine sitting down to be doing all these analyses. Kudos bro.

@Rufyb I like how you keep it simple and easy to digest for non technical folks. Well done, Baba.

@Rufyb Big up Baba

@Rufyb Thank you for this thread.