As the companies listed on stock market have been on a spree to declare dividend out of the profits of the previous year 2075/76, some have duly endorsed the dividend while some have not announced the book closure date yet. Although, dividend being issued by a company is announced by them on the basis of the par value of share which is Rs.100 (except for some companies and mutual funds). Therefore, it is important to know the dividend yield based on the market price of the share.
The yield is obtained by dividing the dividend per share by the price of that share. The yield gives an idea regarding the return generated on the existing price of the company. It shows the percentage of reward on the basis of the market price of the company’s stocks.
A list has been prepared to reflect the dividend yield of the companies that have declared dividends for FY 75/76. For those who have passed the book closure date, LTP of those stocks one day prior to the book closure date has been considered and for those who haven’t passed the book closure date, latest LTP of those stocks has been considered to calculate the dividend yield.
The highest yield in the commercial bank industry is from NMB Bank Limited (NMB) which announced dividend of 35%. The yield at LTP of Rs.402 per share stood at 8.71%. Since the book closure date has not arrived yet, the attest LTP has been considered. The actual yield of the stock may differ on the basis of the LTP before book closure. Similarly, Standard Charted Bank (SCB) has the lowest yield of 4.05%. The average yield of the industry stood at 6.01%.
The highest yield among development banks is provided by Lumbini Bikas Bank (LBBL) at 10.58% while the lowest is provided by Kamana Sewa Bikas Bank (KSBBL) at 4.82%. The average yield of the industry stood at 8.10%. LBBL has also announced the highest dividend in the industry.
The average yield of Finance sector stood at 8.34%. The highest dividend and yield is provided by Janaki Finance Limited (JFL) at 11.70%. Although, the yield maybe subject to change. Similarly, Guheswori Merchant Banking and Finance (GMFIL) has the lowest yield at 5.65% which is again subject to change.
Out of three listed hotels, all three have declared dividend out of profits of FY 75/76. Soaltee Hotel Limited (SHL) has a yield of 1.22%. The par value of SHL is Rs.10 per share, the yield has been calculated accordingly. Taragaon Regency has highest yield among hotels sector which is 4.78%.
Among the hydropower companies, despite having the highest dividend, Chilime Hydropower Company (CHCL) has the lowest yield at 5.54%. United Modi Hydropower (UMHL) has the highest yield at 7.80%. The average of the yield of five companies stood at 6.77%.
Manufacturing and Products
With yield of 14.02%, Nepal Lube Oil Limited (NLO) becomes the stock to have the highest yield in the stock market among the companies that have declared dividend. Shivam Cements Limited (SHIVM) stood at the bottom with minimal yield of 3.11%.
The average yield of the microfinance industry stood at 3.40% with 22 companies each below and above the average. The yield varies from 5.90% posted by Suryodaya Laghubitta (SLBS) to 0.57% posted by Nepal Seva Laghubitta (NSEWA). National Microfinance (NMFBS) has the highest dividend of 80% and yield of 4.44%.
Currently, mutual funds sector has the highest yield in the stock market compared to the average yield of other sectors. The sector managed to post an average yield of 10.55%. Since, the par value of mutual funds is Rs.10 per unit, the yield has been calculated accordingly. Laxmi Value Fund 1 (LVF1) has the highest yield at 13.72% while NIBL Samriddhi Fund 1 (NIBSF1) has the lowest yield at 7.14%.
Only two non-life insurance companies have declared dividends out of the profits of FY 75/76. Prabhu Insurance (PRIN) declared dividend of 16.32% which results in yield of 4.96% as per the latest LTP. Similarly, IME General Insurance (IG) declared dividend of 6% resulting in yield of 2.11%. The yield is subject to change as per the LTP of the stocks one day prior to the book closure date.
None of the companies from Life Insurance sector, Others sector and Trading sector have declared dividends for FY 75/76.