UPDC Plc is a good example of why some investors say “no dividend is too small.” Even a few kobo can become meaningful when you hold large volumes of shares.
UPDC is a real estate and property development company. They make money from:
Property development (residential estates, offices)
Property sales
Facility management
Rental income from commercial properties
The company has gone through restructuring in recent years, selling some assets, reducing debt, and trying to return to profitability. Because of that, when they pay even a small dividend, investors who bought at very low prices (50k, 90k, ₦2) and hold millions of shares can still make decent cash while also benefiting if the share price appreciates.
This is one strategy some NGX investors use:
Buy undervalued stocks at very low prices
Accumulate large volume
Earn dividend income
Wait for price appreciation
But the key thing here is patience and risk — because not every low-priced stock recovers, and not every company continues paying dividends.
So the honest question is:
Is it better to hold millions of shares in a low-priced company paying small dividends, or fewer shares in a strong company paying consistent and growing dividends?
UPDC is a real estate and property development company. They make money from:
Property development (residential estates, offices)
Property sales
Facility management
Rental income from commercial properties
The company has gone through restructuring in recent years, selling some assets, reducing debt, and trying to return to profitability. Because of that, when they pay even a small dividend, investors who bought at very low prices (50k, 90k, ₦2) and hold millions of shares can still make decent cash while also benefiting if the share price appreciates.
This is one strategy some NGX investors use:
Buy undervalued stocks at very low prices
Accumulate large volume
Earn dividend income
Wait for price appreciation
But the key thing here is patience and risk — because not every low-priced stock recovers, and not every company continues paying dividends.
So the honest question is:
Is it better to hold millions of shares in a low-priced company paying small dividends, or fewer shares in a strong company paying consistent and growing dividends?