Best Performing Company Shares in Kenya
The Stock Market can seem complicated to comprehend when you are not informed on the best shares to purchase. Most people may not grasp the opportunities to get significant returns from investing in shares as they don't know how percentages work.
Experts, however, advise investors to buy stocks and shares as they provide huge returns. In Kenya, stocks and shares trading in the Nairobi Stocks Exchange(NSE) are expected to sell better compared to previous years. However, certain factors may influence if you make a loss or profit, such as the level of inflation in the country.
In this article, we look at some of the shares in which you should put your money.
Factors to Consider when Purchasing Company Shares.
When you are looking to purchase shares and stocks;
1. You should consider if a company has a strong balance sheet. This eliminates the possibility of a company going into liquidity, where you can lose all your money.
2. Always consider the returns a company gives its shareholders. If dividends are rising, it is best to invest in the company as the chances of profitability are high.
3. Always check if a company has a substantial competitive advantage. An excellent competitive advantage ensures that the competition is kept at bay and does not affect company performance.
4. You should consider the company's history of shares profitability and how much it has grown compared to other recent years.
5. Company ownership is also an essential factor. Shareholders may benefit from a company whose ownership is diversified.
10 Best Performing Companies in Kenya
Here we divide the Shares options into different categories:
1. The shares which are great for holding
2. The shares which offer huge returns
3. The company shares continue to grow.
Safaricom PLC is a leading telecommunications service provider company in Kenya that offers enormous returns on investments with a payout ratio of 100 %. Shareholders have enjoyed huge returns on investments in recent years as the Telecommunications giant continues to excel in service delivery and tremendous revenue generation.
Equity Group Holdings Ltd continues to be one of Kenya's leading banking providers. The company boasts over Ksh. 3 Trillion in assets, with Equity Group Investments Ltd being charged with managing the companies investments in different sectors. Equity Bank operates commercial banking, retail banking, treasury services, and investment divisions in various markets in other countries such as Rwanda, Mauritius, Kenya, Uganda, Tanzania, and South Sudan.
3. Jubilee
Investors continue to rank Jubilee Holdings shares as one of Kenya's best shares to buy. The company offers insurance, asset management, banking stockbroking, and investment service. Jubilee pays an 8.9% return on dividends and has been offering good dividend returns since 2013. Investors can continue to invest in the shares as they offer good returns over a given extended period.
Bamburi Cement is a lead producer and distributor in Portland cement, quicklime, and hydrated lime. Bamburi Cement shares continue to offer good returns on investments, with shareholders having a dividend yield of 10%
5. Kakuzi PLC
Kakuzi PLC is an agricultural production and processing firm based in Kenya and is listed on NSE. Kakuzi offers double-digit returns with a guaranteed zero tax on dividend earnings annually. Kakuzi shares have been yielding increasing dividends annually since 2008 and are a favorite pick among investors.
Kenya Commercial Bank Group PLC is another bank on this list that offers good investment returns. Currently, it has a return of 9.5% on shares. KCB has been paying dividends for more than 20 years now with dividends being paid twice a year. The bank offers banking services to large companies and small and medium enterprises in Rwanda, Tanzania, Burundi, DRC Congo, and South Sudan.
7. Kengen
KenGen shares continue to be a favorite among investors and are among the best shares to buy in Kenya. KenGen is famous for generating, transmission, distribution, and electricity sales in Kenya. The company offers an essential service to Kenyans. That is why its shares continue to offer good returns as it can generate almost over 97% of all electricity supplied in Kenya and then sells the power output to Kenya Power & Lighting Company PLC.
Kenya Reinsurance Corporation is considered to be Kenya's largest reinsurer. The company provides a wide range of insurance products such as aviation, property, marine, and motor insurance to large companies and individual citizens. Kenya Re is considered one of the best companies to invest in Kenya as it overs a dividend yield of 10%. The company continues to grow in net profits and now should be the best time to buy its shares.
EABL is a Kenyan brewer which produces Senator Keg, Tusker Beer, East African Breweries Ltd among others. The company is listed on the NSE and provides an excellent pick for stock purchase. Investors usually hold them as the annual dividend yield is over 10%. EABL is a good company that you should not overlook when investing.
Unilever Kenya is a strong performing company that produces beverages, cleaning agents, personal care products, foods among others with the company operating in over 90 countries and having employees over 170,000. The company offers good dividends every year and is a good pick for your investment portfolio.
Here is a Youtube Video that offers more information about this topic:
Best Investment Opportunities in Kenya
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