Best Stocks to Buy in Nigeria 2020
According to IQ Option statistics, the number of traders on the stock market has increased by 50% during the quarantine. It is true for all exchange markets, including the market in Nigeria.
On the one hand, this is surprising, as market exchanges have a hard time with such periods of instability. The work on the exchange market is based on predictions, and it is very difficult to make a prognosis now.
On the other hand, these circumstances have contributed to the growth of the popularity of the exchange market. If the situation is unstable, beginners have the same chances of making a profit as experienced traders.
Best Stocks to Buy in Nigeria
However, it is important to choose the right companies not to lose all the investment. To do this, you need to analyze the market situation in your country and determine which companies are now firmly established.
The main rule of the exchange market is that if the company is successfully developing, does not hide the situation with the commodity circulation, and has a development plan for several years in advance, its stocks can be bought.
What Are the Best Stocks to Buy in Nigeria?
Traders do such analysis every day, so it does not take them long. For beginners, however, this is a difficult task. That’s why we wrote this article! Here are the 3 best stocks you can buy in 2020.
1. Healthcare Stocks
It seems obvious that stocks from the field of healthcare are so appreciated now. The global pandemic has switched the interest center from traveling to the medical sphere.
There are two companies we would like to focus on if you want to buy stocks in 2020.
Glaxo SmithKline Consumer PLC
This international company works in medical, pharmaceutical, and microbiological spheres. It is based in the United Kingdom, Brentford, but it influences healthcare systems all around the world.
It fits every aspect of the most important rule we were talking about – it doesn’t hide commodity circulation (which is at the highest level since the pandemic outbreak), it is developing fast, and you can see its business plan for 5 years.
The nigerian government has a contract with this company, so you can buy these assets. Its capitalization now is 76.33 billion, and profitableness reaches 11.44%.
May and Baker PLC
Historically founded in the United Kingdom, May and Baker PLC opened a factory in Nigeria. It became the first pharmaceutical company in the country, and it is the leader in its sphere until today.
The latest data about its stock situation showed 55.15% of one-year income and 8.33% of dividends.
Alongside with healthcare system, life and health insurance has become highly demanded. Here is the best company to buy stocks in Africa.
Law Union and Rock
The company has always been among the leaders on the insurance market, but after the pandemic outbreak, it has become number one. On the exchange market, the yield has reached 1.77%, and the dividends are ₦ 0.02 now. It may not seem a lot, but the company is definitely reliable and can be profitable for you.
3. Logistics Companies
When we faced the necessity to buy everything on the Internet, the logistic sphere almost failed. It wasn’t ready to manage so many deliveries. However, now it is better than it ever was which makes logistic companies so great to buy stocks.
In Africa, there are many logistics companies, but the top one is surely Red Star Express PLR.
Red Star Express PLR
This company managed to catch the tide and took everything from the lockdown situation in the world. The dividend has reached 11.47%, and it doesn’t stop growing!
These were the best stocks to buy in Nigeria in 2020. The choice is yours, but be sure to check the exchange market status of every asset you buy.