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,
Sector Wis...

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.