10 Unloved Kenyan Stocks That History Bets Will Beat the Market

Photo by Simon Greig

Ah, the humble price/earnings ratio.

It’s one of the crudest tools in an investor’s toolbox. But there’s no denying that the simple act of dividing a company’s share price by its earnings consistently reveals stocks poised for powerful performance.

Here we examine the recent performance of low P/E stocks on the Nairobi Securities Exchange and list 10 Kenyan shares with the lowest earnings multiples.

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Is Nigeria’s Diamond Bank a Gem in the Rough?

Diamond Bank's Rights Issue a Gem in the Rough?

After some rocky years in the wake of Nigeria’s banking crisis, Diamond Bank looks like it’s regained its footing. Now it wants to grow.

Toward that end, the bank has launched a rights issue which offers existing shareholders the right to purchase three additional shares for every five shares they own.

Is it a good deal? Or should investors dig for value elsewhere? Let’s take a closer look and make an assessment.

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7 Rock Solid South African Stocks That Pay Big Dividends

Photo by Andrew Cook

Looking for shares that provide a steady income and also the prospect of solid growth?

Here’s a list of seven of the highest-yielding dividend-payers listed on the JSE and a simple screen to use when looking for similar companies on other African stock markets.

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Is the NSE IPO a Bargain?

Nairobi Securities Exchange

The long-awaited Nairobi Securities Exchange IPO is finally here. The Kenyan stock market is offering the public a 34% stake in the business to raise cash for expansion and to reduce mortgage debt.

The IPO price has been set at Kshs9.50 per share. Is this a bargain opportunity for Kenya investors? Let’s take a quick look at the prospectus to find out.

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5 Deflation-Busting Zimbabwean Stocks (and 2 to Avoid)

Deflation

With memories of hyperinflation still fresh, Zimbabweans now wrestle with a deflationary economy.

Here are five stocks that can help blunt its impact, and two more that investors would do best to avoid.

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Here’s How to Profit From Tanzania’s Quiet Rise

CRDB Bank and Tanzania's Growth

It might be time to brush up on your Swahili.

Tanzania looks to be one of the world’s biggest economic success stories over the next five years. While its dynamic neighbor to the north grabs most of the headlines, the unassuming East African nation has strung together 12 consecutive years of +6% GDP growth. And there’s no end in sight.

Here’s a stock that both local and foreign investors can buy to participate in the country’s expansion.

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Bralirwa: A Rwandan Stock That Pours Out Profits

Photo by Ludovic Hirlimann

Christian Sirikali recalls enjoying Bralirwa’s products as a child in Rwanda and the Democratic Republic of Congo.

Now a chartered account, Sirikali looks at the brewer through an investor’s lenses and likes what he sees.

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Building the African Dream: Two Kenyan Infrastructure Stocks

Photo by Erik Hersman

Infrastructure is a key pillar of the sub-Saharan Africa investment thesis. The hopes and dreams of Africa’s rising consumer class need to be powered by electricity, transported by road and rail, and anchored by new homes and workplaces.

Here. Jan Schalkwijk, CFA takes a closer look at two Kenyan companies capitalizing on East Africa’s infrastructure boom.

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Stock Tips for a Senegalese-American Hip Hop Star

Photo by Abdulmajeed Almutawee

Akon,

Your success as a singer, songwriter, and producer is nothing short of remarkable. I’m sure you never dreamed while a boy in Dakar, Senegal that one day your music would dominate record charts, or that you would perform with the likes of Michael Jackson, or earn an eight-figure income. You’ve been ranked among the most powerful celebrities in the world, and I’m sure your upcoming album will add to your long list of achievements.

True, your success wasn’t overnight or without controversy. But you seem to sincerely want to give back and do good in the world.

Moreover, you’re serious about investing in the continent that you call home. You write about it in songs. You talk about it in interviews. You even own a South African diamond mine.

Could we talk a little bit about that last one?

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Kenya’s Dividend Kings: Two Stocks for Income Investors

Photo by Travis S.

It’s tough to beat a company that pays out a regular dividend.

They generate income for shareholders. They typically boast sharp management teams. And, historically, their shares have outperformed their non-dividend-paying counterparts.

The Nairobi Securities Exchange is chock full of dividend stocks. Almost all companies listed on the market presently pay a dividend.

But not all dividend stocks are created equal. Some don’t yield much in relation to their price. Others pay out so much of their earnings that it hampers their future growth. And some disappoint shareholders with frequent dividend cuts.

So, which Kenyan stocks offer the most substantial, reliable, and growing income stream?

Let’s take a closer look.

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