Sector Wise Dividend distribution in fiscal year 2074/75: Most Companies distributed bonus share but few of them pay cash dividend for tax on bonus share
Wed, Jul 17, 2019 5:53 PM on Dividend, Bonus & Rights, Featured,
Almost 131 companies from different sector distributed dividend from the profit of fiscal year 2074/75. The dividends have been distributed in the form of cash dividend and bonus share.
As always Unilever Nepal, a subsidiary of Hindustan Unilever, is in the top of list of dividend distributing company in 2074/75 giving 700% cash dividend.
In order to increase the paid up capital of the company and to make company stronger, many companies distributed bonus share from the profit. While distributing bonus share investors have to face a trouble of paying tax on their own.
There is no problem when company pays cash dividend, because an organization already deduct the tax and pay on behalf of investor. But when company pays bonus share, either the company should distribute cash dividend together with bonus share for tax purposes or investors need to visit offices by carrying additional money for tax to exercise bonus share.
This is being a hectic task for investor. However many companies make the investors’ task easy by paying cash dividend with bonus share.
Following are the sector wise list of companies who have distributed the dividend in fiscal year 2074/75:
In addition, highlighted companies are the one who have asked investors to pay additional tax on their own to exercise bonus share.
Commercial Bank
Nepal Investment Bank was top dividend paying company followed by Nabil Bank. Both the banks distributed bonus share and paid cash dividend for the tax paying purpose. But Global IME bank made their investor to pay additional money for the tax on bonus share. And in case of Prime Bank, the company has neither endorsed any cash dividend for bonus share tax purpose and nor listed its bonus share in NEPSE so far.
|
S.N. |
Bank Name |
Bonus Dividend (%) |
Cash Dividend (%) |
Total Dividend (%) |
|---|---|---|---|---|
|
1 |
Sanima Bank Limited |
0 |
14 |
14 |
|
2 |
Everest Bank Limited |
0 |
20 |
20 |
|
3 |
Standard Chartered Bank Nepal Limited |
0 |
17.5 |
17.5 |
|
4 |
NIC Asia Bank Limited |
10 |
0.526 |
10.526 |
|
5 |
NMB Bank Limited |
10 |
20 |
30 |
|
6 |
Machhapuchchhre Bank Limited |
0 |
10 |
10 |
|
7 |
Siddhartha Bank Limited |
5 |
8.16 |
13.16 |
|
8 |
Sunrise Bank Limited |
0 |
11.5 |
11.5 |
|
9 |
Nepal Bangladesh Bank Limited |
0 |
10.53 |
10.53 |
|
10 |
Nabil Bank Limited |
12 |
22 |
34 |
|
11 |
Global IME Bank Limited |
16 |
0 |
16 |
|
12 |
Nepal Investment Bank Limited |
18 |
22 |
40 |
|
13 |
Janata Bank Nepal Limited |
0 |
8.5 |
8.5 |
|
14 |
Citizens Bank International Limited |
3.628 |
1.635 |
5.263 |
|
15 |
Bank of Kathmandu Limited |
14 |
11 |
25 |
|
16 |
Nepal SBI Bank Limited |
5 |
10.79 |
15.79 |
|
17 |
Himalayan Bank Limited |
5 |
10.78 |
15.78 |
|
18 |
Mega Bank Nepal Limited |
1 |
6.85 |
7.85 |
|
19 |
Prime Commercial Bank Limited |
16 |
0 |
16 |
|
20 |
Prabhu Bank Limited |
8 |
0.42 |
8.42 |
|
21 |
Kumari Bank Limited |
8.5 |
0 |
8.5 |
|
22 |
Laxmi Bank Limited |
8.5 |
0.45 |
8.95 |
|
23 |
Agricultural Development Bank Limited |
6 |
15.053 |
21.053 |
|
24 |
Civil Bank Limited |
0 |
4.05 |
4.05 |
|
25 |
Century Commercial Bank Limited |
2 |
4.5 |
6.5 |
|
26 |
Nepal Credit & Commerce Bank Limited |
15.89 |
0.83 |
16.72 |
Development banks
Most companies under this sector distributed bonus share. However every bank made investor task easy by paying cash dividend for tax purposes on bonus shares.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Mahalaxmi Bikas Bank Limited |
8 |
7 |
15 |
|
2 |
Shine Resunga Development Bank Limited |
17.7 |
0.93 |
18.63 |
|
3 |
Kankai Bikas Bank Limited |
3 |
6.5 |
9.5 |
|
4 |
Jyoti Bikash Bank Limited |
0 |
8.4 |
8.4 |
|
5 |
Garima Bikas Bank Limited |
10 |
3.75 |
13.75 |
|
6 |
Muktinath Bikas Bank Limited |
18.25 |
0.96 |
19.21 |
|
7 |
Saptakoshi Development Bank Limited |
3 |
5.03 |
8.03 |
|
8 |
Excel Development Bank Limited |
0 |
17 |
17 |
|
9 |
Miteri Development Bank Limited |
17 |
0.89 |
17.89 |
|
10 |
Kanchan Development Bank Limited |
5 |
6.29 |
11.29 |
|
11 |
Nepal Community Development Bank Limited |
1 |
6.42 |
7.42 |
|
12 |
Kailash Bikas Bank Limited |
0 |
17 |
17 |
|
13 |
Purnima Bikas Bank Limited |
5 |
6.37 |
11.37 |
|
14 |
Gandaki Bikas Bank Limited |
0 |
14.2 |
14.2 |
|
15 |
Sahayogi Vikas Bank Limited |
0 |
17 |
17 |
|
16 |
Shangrila Development Bank Limited |
4 |
5.45 |
9.45 |
|
17 |
Lumbini Bikas Bank Limited |
17.35 |
0 |
17.35 |
|
18 |
Bhargav Bikash Bank Limited |
0 |
6 |
6 |
|
19 |
Sahara Bikas Bank Limited |
12.3 |
0.6 |
12.9 |
|
20 |
Kamana Sewa Bikas Bank Limited |
1.5 |
8 |
9.5 |
|
21 |
Deva Bikas Bank Limited |
5.5 |
0 |
5.5 |
|
22 |
Western Development Bank Limited |
0 |
14.74 |
14.74 |
Finance Companies
Among finance companies Srijana Finance company Limited was the top dividend paying company which paid 24.5% total dividend including 15% bonus share.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Pokhara Finance Limited |
5 |
8.684 |
13.684 |
|
2 |
ICFC Finance Limited |
0 |
8 |
8 |
|
3 |
Janaki Finance Company Limited |
22 |
1.16 |
23.16 |
|
4 |
Guheswori Merchant Banking & Finance Limited |
0 |
5.26 |
5.26 |
|
5 |
United Finance Limited |
0 |
5 |
5 |
|
6 |
Manjushree Finance Limited |
0 |
2.9 |
2.9 |
|
7 |
Shree Investment Finance Company Limited |
1.23 |
8.77 |
10 |
|
8 |
Srijana Finance Limited |
15 |
9.5 |
24.5 |
|
9 |
Goodwill Finance Company Limited |
0 |
5.26 |
5.26 |
|
10 |
Central Finance Limited |
0 |
7 |
7 |
|
11 |
Reliance Finance Limited |
0 |
2.63 |
2.63 |
|
12 |
Jebils Finance Limited |
1.24 |
0 |
1.24 |
Hotel Industries
Less companies are listed on NEPSE from hotel industry, but every company pays cash dividend for tax purposes.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Oriental Hotel Limited |
15 |
11.32 |
26.32 |
|
2 |
Soaltee Hotel Limited |
10 |
16.31 |
26.31 |
|
3 |
Taragaon Regency Hotel Limited |
0.631 |
12 |
12.631 |
Hydro Energy Sector
In hydro energy sector Api Power Company limited distributed bonus share. But there is no such record of distribution of cash dividend for tax purposes on that bonus share.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Ngadi Group Power Limited |
0 |
10 |
10 |
|
2 |
Ridi Hydropower Development Company Limited |
6 |
0.315 |
6.315 |
|
3 |
Sanima Mai Hydropower Limited |
10 |
5 |
15 |
|
4 |
United Modi Hydropower Limited |
0 |
5 |
5 |
|
5 |
Butwal Power Company Limited |
10 |
18 |
28 |
|
6 |
Api Power Company Limited |
5 |
0 |
5 |
|
7 |
Chilime Hydro power Company Limited |
20 |
5 |
25 |
|
8 |
Nepal Hydro Developer Limited |
4 |
0 |
4 |
|
9 |
Radhi Bidyut Company Limited |
5 |
5 |
10 |
Life Insurance
Nepal Life Insurance Company Limited is one of the highest cash dividend providing companies and top dividend payer in insurance industry.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Nepal Life Insurance Company Limited |
25 |
23.5 |
48.5 |
|
2 |
Life Insurance Corporation Nepal Limited |
34.46 |
35.53 |
70 |
|
3 |
Surya Life Insurance Company Limited |
12 |
0 |
12 |
Manufacturing Industry
In manufacturing industry almost all the companies paid cash dividend only except Nepal Lube Oil Limited who provides 10% bonus share and 30% cash dividend. Cash dividend also includes tax on bonus share and cash dividend.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Bottlers Nepal (Terai) Limited |
0 |
40 |
40 |
|
2 |
Bottlers Nepal Limited (Balaju) |
0 |
20 |
20 |
|
3 |
Unilever Nepal Limited |
0 |
700 |
700 |
|
4 |
Himalayan Distillery Limited |
0 |
21.05 |
21.05 |
|
5 |
Nepal Lube Oil Limited |
10 |
30 |
40 |
|
6 |
Shivam Cements Limited |
0 |
15.78 |
15.78 |
Merged Companies
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Hamro Bikas Bank Limited |
2.4 |
7.9145 |
10.3145 |
|
2 |
Kabeli Bikas Bank Limited |
35 |
0 |
35 |
|
3 |
Tinau Development Bank Limited |
12 |
0.63 |
12.63 |
|
4 |
Mission Development Bank Limited |
11 |
0.57 |
11.57 |
Micro Finance Institution
Huge number of companies are listed in NEPSE from the microfinance sector. Among all dividend distributing companies around 45% of the companies paid addition cash dividend for the bonus share. This industry significantly exercised the system of providing cash dividend for tax purposes.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
First Microfinance Laghubitta Bittiya Sanstha Limited |
0 |
12.6316 |
12.6316 |
|
2 |
Mero Microfinance Laghubitta Bittiya Sanstha Limited |
15 |
11.32 |
26.32 |
|
3 |
Womi Laghubitta Bittiya Sanstha Limited |
0 |
25 |
25 |
|
4 |
Global IME Laghubitta Bittiya Sanstha Limited |
15 |
0.7875 |
15.7875 |
|
5 |
Swarojgar Laghubitta Bittiya Sanstha Limited |
20 |
1.05 |
21.05 |
|
6 |
Samata Laghubitta Bittiya Sanstha Limited |
6.66 |
7.36 |
14.02 |
|
7 |
Kisan Microfinance Bittiya Sanstha Limited |
29 |
1.53 |
30.53 |
|
8 |
Suryodaya Laghubitta Bittiya Sanstha Limited |
42.75 |
2.25 |
45 |
|
9 |
Nerude Laghubitta Bittiya Sanstha Limited |
15 |
5.79 |
20.79 |
|
10 |
Summit Laghubitta Bittiya Sanstha Limited |
23.53 |
1.24 |
24.77 |
|
11 |
National Microfinance Bittiya Sanstha Limited |
25 |
15 |
40 |
|
12 |
Swabalamban Laghubitta Bittiya Sanstha Limited |
25 |
11.84 |
36.84 |
|
13 |
Nirdhan Utthan Laghubitta Bittiya Sanstha Limited |
20 |
22.11 |
42.11 |
|
14 |
RSDC Laghubitta Bittiya Sanstha Limited |
10 |
0.53 |
10.53 |
|
15 |
Laxmi Laghubitta Bittiya Sanstha Limited |
0 |
26.32 |
26.32 |
|
16 |
Vijaya Laghubitta Bittiya Sanstha Limited |
10 |
0.526 |
10.526 |
|
17 |
Nepal Seva Laghubitta Bittiya Sanstha Limited |
0 |
5.2 |
5.2 |
|
18 |
RMDC Laghubitta Bittiya Sanstha Limited |
10 |
10 |
20 |
|
19 |
Mirmire Laghubitta Bittiya Sanstha Limited |
24 |
1.26 |
25.26 |
|
20 |
Civil Laghubitta Bittiya Sanstha Limited |
4 |
3.89 |
7.89 |
|
21 |
Nagbeli Laghubitta Bikash Bank Limited |
9.38 |
0.49 |
9.87 |
|
22 |
Unnati Microfinance Bittiya Sanstha Limited |
40.5 |
2.13 |
42.63 |
|
23 |
NMB Laghubitta Bittiya Sanstha Limited |
15 |
0.78 |
15.78 |
|
24 |
Mahila Sahayatra Microfinance Bittiya Sanstha Limited |
0 |
8 |
8 |
|
25 |
Sana Kisan Laghubitta Bittiya Sanstha Limited |
25 |
1.313 |
26.313 |
|
26 |
Deprosc Laghubitta Bittiya Sanstha Limited |
10 |
10 |
20 |
|
27 |
NADEP Laghubitta Bittiya Sanstha Limited |
15 |
1.58 |
16.58 |
|
28 |
Kalika Laghubitta Bittiya Sanstha Limited |
8 |
0.42 |
8.42 |
|
29 |
Mithila Laghubitta Bittiya Sanstha Limited |
10.45 |
0.54 |
10.99 |
|
30 |
Forward Community Microfinance Bittiya Sanstha Limited |
25 |
20 |
45 |
|
31 |
Mahuli Laghubitta Bittiya Sanstha Limited |
20 |
1.05 |
21.05 |
|
32 |
Janautthan Samudayic Laghubitta Bikas Bank Limited |
20 |
1.05 |
21.05 |
|
33 |
Chhimek Laghubitta Bittiya Sanstha Limited |
18 |
22 |
40 |
Mutual Fund
Mutual fund is another industries where the companies do not distribute bonus share. They only paid cash dividend.
|
S.No |
Symbol |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|---|
|
1 |
SEOS |
Siddhartha Equity Oriented Scheme |
0 |
12 |
12 |
|
2 |
NIBSF1 |
NIBL Samriddhi Fund 1 |
0 |
12 |
12 |
|
3 |
NMBSF1 |
NMB Sulav Investment Fund-1 |
0 |
21.05 |
21.05 |
Non-life insurance
In non-life insurance sector almost every company except Neco Insurance Company Limited requested its investors to pay tax on their own. Therefore investor in this sector are in trouble of paying tax on bonus share.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Sagarmatha Insurance Company Limited |
86 |
0 |
86 |
|
2 |
Siddhartha Insurance Limited |
15.48 |
0 |
15.48 |
|
3 |
IME General Insurance Limited |
5 |
0 |
5 |
|
4 |
Premier Insurance Company Limited |
84 |
0 |
84 |
|
5 |
Nepal Insurance Company Limited |
7.5 |
0 |
7.5 |
|
6 |
Neco Insurance Company Limited |
12 |
0.63 |
12.63 |
Others
Nepal Doorsanchar Company Limited, government invested organization of Nepal, has distributed 55% cash dividend from the profit of fiscal year 2074/75.
|
S.No |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|
|
1 |
Nepal Doorsanchar Company Limited |
0 |
55 |
55 |
|
2 |
Hydroelectricity Investment and Development Company Limited |
10 |
0 |
10 |
|
3 |
Citizen Investment Trust |
22 |
1.16 |
23.16 |
Trading
Finally, Salt Trading Corporation Limited has distributed 35% total dividend. 25% of which is bonus share and for the purpose of tax on bonus share it has also paid cash dividend of 10%.
|
S.No |
Symbol |
Company Name |
Bonus Dividend(%) |
Cash Dividend(%) |
Total Dividend(%) |
|---|---|---|---|---|---|
|
1 |
STC |
Salt Trading Corporation Limited |
25 |
10 |
35 |
Every Investor invests in the companies to earn a profit/gain. The gain might be capital gain or in the form of dividends. Nepalese companies whichever listed in the NEPSE are also very efficient, as they are providing significant amount of dividend to the shareholders.
In recent past year/s bank and financial institutions (BFIs) are providing bonus share in order to increase the capital of organization. In such situation BFIs should not put their investor into trouble to make them pay tax on their own, rather they should exercise the system of providing cash dividend for tax purposes.
