How 23 Stocks Beat Inflation

Twenty-three stocks quoted on the Nigerian Exchange Limited (NGX) have delivered returns well above Nigeria’s inflation rate so far in 2026, providing investors with significant nominal gains despite a challenging macroeconomic environment.

The rally, however, has not been uniform. While investors in the leading gainers have enjoyed substantial capital appreciation, several of the stocks carry elevated valuation multiples, while seven companies in the group recorded negative return on equity (ROE), highlighting significant differences in underlying corporate performance.

Zichis, SCOA lead gainers on nominal YtD

As of August 21, 2026, Zichis Agro Allied Industries topped the ranking with a staggering 365.49 per cent year-to-date (YtD) nominal price gain, narrowly ahead of SCOA Nigeria, which rose 365.19 per cent.

They were followed by Union Dicon Salt at 271.09 per cent, RT Briscoe at 241.43 per cent, Infinity Trust Mortgage Bank at 221.43 per cent, Berger Paints Nigeria at 207.50 per cent and Premier Paints at 204 per cent.

First Holdco gained 177.08 per cent, while Vitafoam Nigeria advanced 153.04 per cent and Fortis Global Insurance rose 150 per cent. HBM Nigeria appreciated 149.25 per cent.

Other major gainers included NGX Group at 123.42 per cent, NCR Nigeria at 121.73 per cent, Julius Berger Nigeria at 103.27 per cent, Aradel Holdings at 102.09 per cent, Morison Industries at 101.94 per cent and Initiates Plc at 100.75 per cent.

Completing the group were McNichols at 98.65 per cent, UPDC Real Estate Investment Trust at 97.83 per cent, UACN at 95.44 per cent, May & Baker Nigeria at 94.70 per cent, Zenith Bank at 93.65 per cent and Skyway Aviation Handling Company at 93.56 per cent.

Real returns YtD remains strong

After adjusting the reported gains for inflation, the analysis indicates that the leading stocks still generated substantial positive real returns.

Zichis Agro Allied delivered the highest real gain at 1,379.25 per cent, followed by SCOA Nigeria at 302.8 per cent, Union Dicon Salt at 221.3 per cent and RT Briscoe at 195.61 per cent.

Infinity Trust Mortgage Bank recorded 178.3 per cent, while Berger Paints gained 166.2 per cent in real terms.

First Holdco returned 139.9 per cent, Vitafoam 119.1 per cent, Fortis Global Insurance 116.5 per cent and HBM Nigeria 115.8 per cent.

Other real-return leaders included NGX Group at 93.4 per cent, NCR Nigeria at 91.97 per cent, McNichols at 79 per cent, Julius Berger at 75.9 per cent, Aradel Holdings at 74.9 per cent, Morison Industries at 74.8 per cent, Initiates at 73.8 per cent, UPDC REIT at 71.3 per cent, UACN at 69.2 per cent, May & Baker at 68.6 per cent, Zenith Bank at 67.7 per cent and Skyway Aviation Handling at 67.6 per cent.

The figures underline the scale of capital gains available to investors who entered these stocks early. However, high past returns should not be interpreted as a guarantee of future performance, particularly where valuation multiples have expanded faster than earnings.

Dividends paying companies

Analysis has shown that capital appreciation was not matched by dividend income across the group.

Of the stocks for which dividend-yield data were available, HBM Nigeria offered the highest dividend yield at 6.59 per cent, followed by UPDC REIT at 5.35 per cent, Aradel Holdings at 2.40 per cent and NGX Group at 2.26 per cent.

Infinity Trust Mortgage Bank yielded 1.56 per cent, May & Baker 1.35 per cent, Julius Berger 1.37 per cent, Vitafoam 1.29 per cent, McNichols 1.24 per cent, Berger Paints 1.12 per cent, Initiates 1.12 per cent, Zichis 0.59 per cent, UACN 0.56 per cent and First Holdco 0.46 per cent.

Six companies from the top YtD nominal gainers in price appreciation — SCOA Nigeria, Union Dicon Salt, RT Briscoe, Premier Paints, Fortis Global Insurance and Morison Industries — had no dividend yield because no dividend was declared.

Analysts have noted that investors focused on total returns need to distinguish between capital gains and income returns.

A stock can produce spectacular price appreciation while offering little or no dividend income. Conversely, a lower-growth stock with a stronger dividend yield may appeal more to income-oriented investors.

Some stocks now look expensive

The Price-to-Book (P/B) ratios reveal a wide disparity in how the market values the companies relative to their net assets.

SCOA Nigeria had the highest reported P/B ratio at 24.85 times, followed by Morison Industries at 12.95 times, NCR Nigeria at 12.05 times, UACN at 7.02 times, Vitafoam at 6.91 times, McNichols at 6.59 times and HBM Nigeria at 6.68 times.