Dividends of real sector attractive
KATHMANDU, JAN 07:
Despite a scanty presence in the stock market, stocks of active real sector companies are not only bullish but are also giving out attractive dividends to shareholders.
This year also, Unilever became the highest dividend paying company among the companies listed at Nepal Stock Exchange. Unilever has distributed cash dividend of Rs 680 from the profits earned last fiscal year. Unilever’s stock price almost doubled in the last four months. Other two popular manufacturing companies — Bottlers Nepal (Balaju) and Bottlers Nepal (Terai) — have also provided Rs 70 and Rs 85 per unit share, respectively.
Likewise, listed hydropower companies also offer better dividends in comparison to financial intermediaries. This year, the three well-functioning listed hydropower companies — Chilime Hydropower, Arun Valley Hydropower and Butwal Power Company — distributed 50 per cent, 15.75 per cent and 25 per cent dividends.
Soaltee Hotel has also announced a 52.63 per cent dividend. Nepal Telecom — the largest listed company — is yet to announce its dividend but its profit exceeded Rs 12.7 billion stoking hopes of a handsome dividend this year.
“For investors, these stocks provide both speculative value, in the short term, and are also beneficial for dividend reasons,” said general secretary of Nepal Investors’ Forum Raj Kumar Timilsina.
Dividends are one of the important features that a non-speculative investor looks at before purchasing a stock.
Among the banks, Nabil Bank, Standard Chartered Bank, Bank of Kathmandu and Nepal Investment Bank have offered dividends higher than 25 per cent. The dividend announced by the rest of the commercial banks, development banks and finance companies are rarely higher than 15 per cent. Insurance companies have yet to announce any attractive dividend except for LIC Nepal that is giving 65 per cent bonus shares.
The manufacturing index appreciated by 27 per cent in the last nine months. Likewise, hotels and others index jumped by 35 per cent and 63 per cent, respectively, while hydropower recorded an increment of 117 per cent.
Though shares of hydropower companies and Soaltee Hotel are frequently traded at the stock exchange, stocks of manufacturing companies rarely see the trading floor. Among the 28 companies listed under manufacturing, trading, hydropower and others, stocks of only nine companies are actively traded.
“The price of real sector shares are always increasing as there are not many stocks listed and there is high demand for them,” said Timilsina.
Less than one million units of Unilever are listed at the stock exchange while Bottlers Nepal (Tarai) has about 1.2 million units and Bottlers Nepal (Balaju) has about two million units listed.
Source: THT
