Many will remember 2023 as a rough year for stock market investors. It was the year that saw the NSE All Share Index plunge more than 27%. The index measures the average performance of all the more than 60 companies listed on the Nairobi Securities Exchange (NSE).
But it was not all gloom for every NSE investor. While most NSE companies disappointed investors, a handful of them stood out for their strong performance.
These are the top 5 NSE companies that made investors proud in 2023.
5. Williamson Tea Kenya PLC (NSE: WTK) – 30%
Williamson Tea is an agricultural company in the tea business. It grows tea and sells tea products in the domestic and international markets. Williamson Tea shares jumped 30% to close the year at Ksh208. Someone who invested Ksh50,000 in Williamson Tea shares in January saw their investment grow to Ksh65,000 at the end of the year.
Williamson is a profit machine that routinely pays dividends to its shareholders each year. In 2023, the tea company boosted its per share dividend to Ksh30 from Ksh20 in the previous year.
4. Eaagads Limited (NSE: EGAD) – 33%
Eaagads is an agricultural company in the coffee business. The company grows coffee and sells coffee products to the domestic and international markets. Eaagads shares jumped 33% to close the year at Ksh13.95. It means that if you had invested Ksh50,000 in Eaagads in January, you would have had Ksh66,500 at the end of the year.
Although Eaagads has only been profitable on-and-off and has not paid dividends recently, investors seem to believe its coffee business has a bright future.
3. Eveready East Africa (NSE: EVRD) – 56%
Eveready manufactures batteries used in spotlights, cameras, cars, and other devices. Eveready batteries are also used in solar and wind power systems for backup energy storage.
Eveready shares rose more than 56% to close the year at Ksh1.08. An investment of Ksh50,000 in Eveready shares in January was worth Ksh78,000 at the end of the year.
Apart from batteries, the company also makes light bulbs under the Turbo brand. Eveready sells its products across East African countries. While Eveready has struggled to maintain consistent profit, it is attempting to turn around its fortunes and investors have appreciated the efforts.
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2. Kapchorua Tea Company Limited (NSE: KAPC) – 90%
Kapchorua is a Kenyan agricultural company. It grows tea and sells tea products in Kenya and abroad. Kapchorua shares jumped nearly 90% to close the year at Ksh215. If you had invested Ksh50,000 in Kapchorua shares in January, you would have seen your investment grow to Ksh95,000 at the end of the year.
The company runs a profitable agriculture business that has allowed it to pay dividends regularly to its shareholders. In 2023, Kapchorua paid an annual dividend of Ksh25 per share, more than doubling the amount it paid out the previous year. The company boosted the dividend after its profit for the year rose nearly 50% compared to the prior year.
1. Umeme Limited (NSE: UMME) – 115%
Umeme is a Ugandan electricity distribution company. You may call it the Kenya Power of Uganda. Umeme shares rose more than 115% to close the year at Ksh16 apiece. It means that Ksh50,000 invested in Umeme shares at the beginning of the year was worth Ksh107,500 at the end of the year.
The company supplies electricity to factories, businesses and homes across Uganda. Umeme is profitable and often pays dividends to its shareholders. The company plans to distribute Ksh1.5 billion in dividends to its shareholders in February 2024.
Conclusion
The list of the top 5 NSE companies that made big bucks for investors in 2023 cuts across several industries, though agricultural companies are clearly the majority.
If you are wondering what are the best NSE companies to invest in 2024, you might want to check out the most valuable companies in Kenya or the cheapest shares to buy on the NSE.
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