MTN Nigeria Resumes Dividend Payment as Profit to Hit N1.1trn in 2025
MTN Nigeria Plc whose revenue has been rising due to a 50 percent tariff windfall will pay dividend to its shareholders next year as profit is expected to hit N1.1 trillion, according to research house Chapel Hill Denham Limited.
That suggests this is the time to own the stock of a company that is expected to go back to its policy of 80 percent payout ratio with a more robust dividend per share (DPS) that implies a dividend yield of 11.2 percent.
“We expect MTNN to exit a position of negative shareholders fund by Q3-25, “said analysts at Chapel Hill Denham.
The largest Nigerian telecommunications provider reported a profit after tax (PAT) of N414.9 billion in the first half (H1) of 2025, marking a strong recovery from the loss after tax of N519.1 billion recorded in the prior H1 2024 period.
A stable currency helped reduce foreign exchange loss to N5.23 billion in June 2025, compared to N887.68 billion as at June 2024.
The company’s retained earnings reduced to N42.45 billion in June 2025 from N458 billion the previous year.
Investors are impressed with the company’s ability to clean its balance sheet, which is why they are buying shares. MTN Nigeria’s shares have gained +122 percent since the start of the year.
The shares are relatively attractive as it has a price to earnings ratio of 18.80 times.
Analysts at Chapel Hill Denham maintained their BUY rating on MTN Nigeria and raised their target price to N600.83, indicating a total upside potential of 30.62 percent including a dividend yield of 2.3 percent.
MTNN is currently trading on full year (FY) -26E EV/EBITDA of 4.0x, cheaper than Safaricom and Vodacom that trade on 5.5x and 5.1x respectively.
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