Nestle Nigeria Plc, the West African nation’s largest food company by market value, dropped the most in more than three months after its dividend yield fell below the expectations of some traders.
The shares closed 5.2 percent lower at 930 naira in Lagos, Nigeria’s commercial capital, their biggest decline since Nov. 13, 2012, according to data compiled by Bloomberg.
Nestle Nigeria yesterday said it will pay a dividend of 18.50 naira a share as net income for the year through December climbed 28 percent to 21.1 billion naira ($134 million).
“Investors have factored in the dividend yield of 1.8 percent as at yesterday, which is below the benchmark of 5 percent,” David Adonri, chief executive officer of Lagos-based Lambeth Trust and Investment Co., said by telephone today. “The shares are expected to adjust further downward in reflection of the yield.”
Nestle Nigeria has risen 33 percent this year, compared with a 19 percent rise on the Nigerian Stock Exchange All-Share Index.