Detailed Summary Of Dividends Distributed By Sectors Listed In Nepse For FY-77/78 With Exact Dividend Figures

Companies listed in NEPSE have declared the dividend (both cash and bonus) for the fiscal year 2078/79. Proposed Dividend is the dividends that are distributed among the shareholders of the company during a financial year and will be paid in the Next Year. Hence, the dividends of last FY-77/78 are distributed in this FY-78/79.

Investors do not just earn from the rise in the share price of their portfolio stocks. They also earn from the dividend and bonuses announced by the company from time to time. Hence, it becomes important for secondary market enthusiasts to know the names of stocks that are going to pay dividends in near future.

Note for Beginners: You can buy the shares of a company after it has proposed its dividend and still be eligible to get the dividend. In other words, you do not have to invest in the company for one whole fiscal year, which is a misconception among amateur investors.

The book closure date is simply the date on which the company closes its books for the dividend. Investors can still buy the shares after that date but they won’t get the dividend. To get the dividend of the company, you must buy the shares before the book closure date and you must not sell those shares till the book closure date. For example, investors can buy the shares of a company on the last day before its book closure date and still be entitled to the dividend. The investor remains eligible even if they sell the shares at the book closure date.

Commercial Banks

26 commercial banks have already proposed the dividend for the fiscal year 2077/78. Among them, Nabil Bank has proposed the highest dividend, i.e. 38%. Similarly, Nepal SBI bank and Civil Bank have paid the least dividend, i.e. 5.31% and 5.26% respectively. However, the book closure date for dividends of these companies has already elapsed, meaning investors won't be able to claim the dividend of these companies. 

Cash and bonus dividends of companies proposed by the companies listed at NEPSE in the Fiscal Year 2077-78 are as given below.

Development Banks

Similarly, 9 of the total 16 development banks listed in NEPSE have declared the dividend for the fiscal year 2077/78. The book closure dates for all of them have already elapsed. As of now, Mahalaxmi Bikas Bank Limited (MLBL) and Kamana Sewa Bikas Bank Limited (KSBBL) has paid the highest dividend viz. 21.0526 and 19.47% respectively. Accordingly, Shangrila Development Bank Limited (SADBL) has paid the least dividend of 10.5263%.

Finance

Out of the listed finance corporations in Nepal, Manjushree Finance Limited remains at the topmost list by paying a dividend of 46%, which is then followed by Reliance Finance Limited which accumulated 15.79% as proposed dividend in the F.Y-77/78. However, the book closure date of all of the following finance sectors has already elapsed.

Micro-Finance

46 microfinance companies listed in NEPSE have declared the dividend for the fiscal year 2077/78. Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLB) paid the highest dividend of 73.68% followed by Mahila Laghubitta Bittiya Sanstha Limited (MLBSL) paying 50% of the dividend (Both bonuses as well as cash).

However, 2 out of the 46 microfinance companies are yet to declare their book closure; KLBSL and WNLB.

Hydropower

Out of the 40 listed hydropower companies till FY 77/78, 14 hydropower companies have declared the dividend. As of now, Ngadi Group Power Limited has paid the highest, i.e. 21.05%. The book closure date of all 14 hydropower companies has elapsed.

Mutual Funds

21 mutual funds have also unveiled the dividend. Global IME Samunnat Scheme 1 (GIMES1) proposed the highest (100% cash dividend) for the fiscal year. However, the book closure date of all of these funds has elapsed.

Investments

Meanwhile, out of 5 listed only 3 investment companies have declared their dividend of FY-77/78. 

Merchant Bank

18 merchant banks have declared their dividends comprising of both cash as well as bonus dividends. Global IME capital remains at the top position while distributing its dividends. Whereas, Century capital market limited declared the least dividend of 10% only. 

Non-Life Insurance

Out of the 20 non-life insurance in Nepal, 18 insurance companies are listed in NEPSE. Sagarmatha Insurance Company Limited has the highest dividend payout scale of 21.05%, whereas the lowest remains for Everest Insurance company. Both of these sectors have recently announced the date as their book closure date. Meanwhile, 2 out of the listed insurance company are yet to disclose their book closure date.

Others

In the same way, NTC (Nepal Doorsanchar Company Limited) also unveiled their dividend. As shown, NTC declared a dividend. However, the book closure dates for the said dividend have already elapsed.

Trading

Salt trading corporation of trading sector distributed dividend of 10.5%, consisting of both bonus as well as cash dividend for the FY 77/78.

Manufacturing and products

Out of the four companies in manufacturing & products sector, Unilever Nepal Limited declared a highest dividend of 650%, which is wholly cash based. Also, HDL and NLO are yet to declare their bonus listing dates.

Note:

For the year 2077/78, none of the companies from two sectors viz Hotel and Tourism, and Life insurance sectors have declare their proposed dividends.

Disclaimer: This article is intended to keep investors updated about the dividends declared by companies till now. It can be used to compare the trend of dividend proposals among companies and sectors. However, it should be noted that the dividend amount isn't the only valuation metric, and depending on it solely may result in speculation errors. Hence, higher dividend-paying stocks may already have a higher market price (hence reducing the profitability of buying).

Additionally, it is not owning more of something that has little value. Investors in NEPSE are overly attracted to bonus shares distribution, almost as if that is all that matters. As the legendary investor Mark Cuban puts it, a small stake in watermelon is more than 100% of a grape.