Having a hard time keeping track of dividend declared? Here is a list of all the companies that have declared dividends for FY 74/75

~Rishab Agrawal

The main motive of a public company is to maximize shareholders wealth making sure that the laws laid downs are followed and ethical practice exists as long as the company exists. All the decisions taken by the executives of the company have that motive in mind and strive to fulfill it with every step forward. But to keep the shareholders satisfied, mere value appreciation in terms of growth in price of shares is not enough. The company must provide adequate returns out of their profits in the form of dividends to their shareholders to lock their interest in the company and to reward their investment. The distribution of dividends makes the shareholder feel that they have invested their funds in the right company. Moreover, adequate dividend payout works in the best interest of the company’s reputation and goodwill in the market. The dividend distributed maybe in the form of bonus shares or cash dividends.

Thus, to help the investors make informed decision while investing, we have compiled data of the companies that have declared or distributed dividends out of profits of FY 74/75. However, the companies that haven’t declared any dividends yet are not mentioned in the list. Using this data, investors will know what to expect from their investment along with the returns provided by other companies.

Out of 33 listed development banks, only 15 have declared dividends for shareholders. The highest amount of dividend has been declared by Kabeli Bikas Bank Limited (KEBL) which is 35%. However, the entire amount of dividend is to be distributed as bonus shares. Among the development banks that have made it to the list, Nepal Community Development Bank (NCDB) has the lowest dividend at 7.42% out of which 1% will be distributed as bonus shares and the rest 6.42% as cash dividend.

There are a total of 21 companies on NEPSE listed under the finance sector, out of which only six companies have made it to the list. Janaki Finance Limited (JFL) has proposed a dividend of 23.16% out of which 22% will be distributed as bonus shares and 1.16% as cash dividend, which is the highest among the companies that have made it to the list. However, this decision is subject to approval on the upcoming AGM of the company that is on 15th October, 2018.

Talking about the hotels industry, only Oriental Hotels Limited (OHL) has proposed a dividend of 26.32% which is subject to approval on the AGM of the company. It wouldn’t be wrong to say that with this declaration, OHL has set a benchmark in the industry which won’t be necessarily easy for the other players to meet.

Out of 19 listed hydropower companies, only 3 have declared or distributed dividends for their shareholders. While Ngadi Group Power (NGPL) has distributed dividend of 10%, Ridi Hydropower (RHPC) and Sanima Mai Hydropower (SHPC) have declared dividend of 6.32% and 15% respectively.

A total of 6 listed companies makes up the Manufacturing and Products sector out of which 3 companies have proposed dividends. Bottlers Nepal Terai (BNT) have declared a dividend of 40% while Bottlers Nepal Balaju (BNL) have declared a dividend of 20%. Unilever Nepal (UNL) stands on top after declaration of 700% dividend for its shareholders. All of the companies on this list will be distributing the entire declared amount as cash dividend.

Coming to the microfinance sector, 38 companies are listed on NEPSE under microfinance sector while only 16 of them have made it to the list. The highest dividend has been declared by Suryodaya Laghubitta (SLBS) which consists of 42.75% bonus shares and 2.25% cash dividend amounting to total dividend of 45%. The lowest dividend declared has been shared by Swadeshi Laghubitta (SDESI) and RSDC Laghubitta (RSDC) at 10% each.

 

Out of a total of 13 mutual funds, only 2 have made it to the list. They are Siddhartha Equity Oriented Scheme (SEOS) managed by Siddhartha Capital Limited and NIBL Samriddhi Fund-1 (NIBSF1) managed by NIBL Ace Capital. Each of them have declared 12% cash dividend.

Since none of the companies from commercial banks, life insurance sector, non-life insurance sector, trading sector and others sector have proposed dividends for their shareholders yet, they have not been mentioned here.