A friend who works with UBA Capital invested 4 million Naira on the shares of UBA in January 2012. He planned to hold the stock for 36 months that is till January 2015. The average purchase price of the stock was between N2.35k and N2.50k.
The guy got a dividend of 702k from his stock in June 2013, after which he sold 90% 0f his shareholding for about 10.5 million Naira. With the sale of 90% of his UBA shares and the dividend received he has over 11 million Naira. He is now contemplating what to do with the money considering the various alternatives that are available.
Firstly he does not have a country home in his home town, that is Odogbolu in Ogun State. His younger brothers all have a country home at Odogbolu and he is the only one left out among the 3 of them. He is therefore thinking of using the money to build a house at Odogbolu.
Secondly he has a fenced plot of land at Ajah, he stopped in 2009 at the foundation stage. He is considering using the 11 million Naira to build a moderately finished 2 units of three bedroom flats that will give a minimum rental income of 1.1 Million Naira.I currently charge my tenants 550k per annum, he may decide to charge same or higher rate.
Thirdly, he believes stocks like Zenith Bank, FBN, UBA, UBA Capital, Access Bank and ETI are currently undervalued, investing in this stocks should give an average dividend yield of 6.5% is over 700k and an upside potential of 30% to 40% that is 3.3 million Naira to 4.4 million Naira in the next 12 months.
What will do you if you are in Supo's shoes.
The guy got a dividend of 702k from his stock in June 2013, after which he sold 90% 0f his shareholding for about 10.5 million Naira. With the sale of 90% of his UBA shares and the dividend received he has over 11 million Naira. He is now contemplating what to do with the money considering the various alternatives that are available.
Firstly he does not have a country home in his home town, that is Odogbolu in Ogun State. His younger brothers all have a country home at Odogbolu and he is the only one left out among the 3 of them. He is therefore thinking of using the money to build a house at Odogbolu.
Secondly he has a fenced plot of land at Ajah, he stopped in 2009 at the foundation stage. He is considering using the 11 million Naira to build a moderately finished 2 units of three bedroom flats that will give a minimum rental income of 1.1 Million Naira.I currently charge my tenants 550k per annum, he may decide to charge same or higher rate.
Thirdly, he believes stocks like Zenith Bank, FBN, UBA, UBA Capital, Access Bank and ETI are currently undervalued, investing in this stocks should give an average dividend yield of 6.5% is over 700k and an upside potential of 30% to 40% that is 3.3 million Naira to 4.4 million Naira in the next 12 months.
What will do you if you are in Supo's shoes.