March 29 (Lagos) - Formerly known as
MOBIL Nigeria Plc, 11 Plc will pay a final dividend of N 8.50 per unit on July 2 2018 to those shareholders whose names appear in their register of members as on May 25 2018.
Shares of
MOBIL are up 5% today to N 185.80 per unit at the Nigerian Stock Exchange in Lagos.
But we would expect the stock to sell off based on the low dividend yield the Company is offering to their shareholders. Based on current stock price, the dividend yield is only 4.5% which is much lower than what can be obtained in the fixed market investments which are risk-free.
Unless you really believe in the new Management of this Company, one can easily pick a better yield elsewhere within the oil and gas sector. That being said, the new Management has a track record of excellence in the Nigerian oil & gas downstream sector.
We expect the stock to come down to 160-165 levels before we will consider buying.
reporting for easykobo.com on Thursday, March 29 2018 from Lagos, Nigeria