Exactly how many companies have declared how much dividend? See the complete list of each sector

~Rishab Agrawal

Dividend, one of the most important aspects of investment, has a major influence on the price of the shares and performance evaluation of a company. We have seen instances where the share prices of a particular company sky rockets after dividend declaration and also those instances where share prices of a particular company take a hit when the dividend declared is not up to the expectations of the investors. Prices of the shares are nothing but the present value of dividends expected in the future, therefore, if the dividend is not as expected, adjustments come into play and the price of the shares behave accordingly.

The fact that dividends are important for investors cannot be stressed enough, and in this light we have prepared sector-wise list of all the companies that have declared or distributed dividend from the profit of FY 74/75. Out of 212 scrips listed on NEPSE, only 95 of them have declared dividend (including 3 mutual fund schemes) for FY 74/75.

Commercial Banks

Only 15 commercial banks have declared dividend for FY 74/75. The amount of dividend declared ranges from 40% to 5% with Nepal Investment Bank (NIB) on the top with highest dividend while Citizens Bank (CZBIL) has the lowest dividend. The following commercial banks are yet to declare dividends:

Development Banks

While only 19 out of 32 listed development banks have declared dividend for FY 74/75, the dividend ranges from 35% to 7% with Kabeli Biaks Bank (KEBL) at the top and Nepal Community Development Bank (NCDB) at the bottom. The following development banks haven’t declared any dividend as of yet:

Finance

Dividend declared by 8 out of 22 finance companies ranges from 25% to 3% with Srijana Finance (SFFIL) leading on the list and Manjushree Finance (MFIL) at the bottom. The following finance companies are yet to declare dividends:

Hotels

For FY 74/75, Oriental Hotel (OHL) has declared a dividend of 26.32% while Soaltee Hotel (SHL) has declared dividend of 26.31%. Taragaon Regency Hotel (TRH) hasn’t declared any dividend as of yet.

Hydropower

Amongst hydropower companies, Butwal Power Company (BPCL) has declared 28% dividend which is the highest while United Modi Hydropower (UMHL) and Api Power (API) have declared 5% dividend which is the lowest. Although, BARUN, CHL, AHPC and HPPL have declared 0% dividend. 10 hydropower companies haven’t declared any dividend as of yet, they are as follows:

Manufacturing and Products

Unilever Nepal (UNL) has declared 700% dividend for its shareholder which is the highest in the sector while Bottlers Nepal Balaju (BNL) are at the lowest in the sector with 20% dividend. Shree Ram Sugar Mills (SRS) is the only company in this sector that has not declared any dividend since it was listed.

Microfinance

Out of 38 listed microfinance companies, 31 have declared dividend for FY 74/75 while one company, namely, Swadeshi Laghubitta (SDESI) has declared 0% dividend. Forward Community (FOWAD) and Suryodaya Laghubitta (SLBS) have declared highest dividend at 45% while Nepal Seva Laghubitta (NSEWA) has declared the lowest at 5%. The following microfinance companies haven’t declared any dividend as of yet:

Mutual Fund

Out of 13 listed mutual fund schemes, only 3 have declared dividend ranging from 21% to 12%. The schemes that are yet to declare dividend are as follows:

None of the companies from Life Insurance, Non-Life Insurance, Trading and Other sector have declared dividends as of yet which is have they have not been featured above.

Most of the companies’ dividend has fallen compared to that of the previous year due to reasons like downtrend and bleak growth of the market. However, declaration of dividends keeps a spark of hope alive within the investors and ensures that their interest in the company is intact.