NAHCO Turns N1m Stake into N120.8m in Five Years

An investor who bought N1 million worth of shares in Nigerian Aviation Handling Company (NAHCO) at the start of 2021 would now hold an investment valued at more than N120.8 million after a rally in the company’s share price and rising dividend payouts boosted returns over the past five years.

A five-year dividend analysis yesterday showed that the investment has also generated N8.33 million in cumulative cash dividends, reflecting the aviation handling group’s strong earnings growth and consistent shareholder returns.

NAHCO opened 2021 at N2.30 per share, implying that a N1 million investment resulted in about 432,000 shares after deduction of transaction costs.

By the third year, the N1 million shareholder has recovered his initial cost and earned an extra N1 million. As NAHCO continued to scale new operational heights, dividends rose significantly over the next two years, adding more than N6 million.

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, NAHCO paid a dividend per share of 41 kobo, representing a total income of N177,120 for the N1 million 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 N518.4 million and additional bonus shares of 86,400 shares for the N1 million shareholder, increasing his shareholding to 518,400 shares.

By 2023, the company doubled cash payouts to N2.54 per share, representing annual income of N1.317 million for the model shareholder. Dividend payout doubled again to N5.94 per share in 2024, amounting to annual income of N3.08 million.

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 May 4, 2026, with a payment date of May 15, 2026, immediately after the annual general meeting of the company.

The N1 million model shareholder would receive a total cash dividend of N3.24 million and additional bonus shares of 74,057 shares for the 2025 business year. These bring total dividend incomes since 2021 to N8.33 million, 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 (NGX) for the cash dividend and bonus issue.

At today’s opening price of N203.95 per share, the N1 million model investment is currently valued at N120.83 million, 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 December 31, 2025, showed that total revenue grew by 21.8 per cent from N53.54 billion in 2024 to N65.21 billion in 2025. Gross profit increased from N33.08 billion to N38.61 billion. Operating profit rose by 25 per cent from N19.84 billion in 2024 to N24.84 billion in 2025.

The report also showed that profit before tax jumped by 30 per cent to N24.256 billion in 2025 as against N18.702 billion in 2024. Profit after tax grew by 39.91 per cent from N12.865 billion in 2024 to N17.999 billion in 2025. Earnings per share rose by 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 N46.95 billion in 2024 to N53.88 billion in 2025. Shareholders’ funds rose by 32 per cent from N20.075 billion to N26.497 billion.

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 wellbeing.

Minority individual retail investors account for more than two-thirds of transactions at the Nigerian equities market, underlining the significant relationship between the market and the 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 included 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.