75 Listed Companies from Different Sectors Have Already Declared Dividends for Fiscal Year 2078/2079; Know Them all?
Wed, Dec 7, 2022 4:24 PM on Dividend, Bonus & Rights, Book Closure, Latest,
Many companies listed in NEPSE have declared the dividend (both cash and bonus) for the fiscal year 2078/79. Proposed Dividend is the dividends that are distributed among the shareholders of the company during a financial year and will be paid in the Next Year. Hence, the dividends of last FY-78/79 are distributed in this FY-79/80.
Investors do not just earn from the rise in the share price of their portfolio stocks. They also earn from the dividend and bonuses announced by the company from time to time. Hence, it becomes important for secondary market enthusiasts to know the names of stocks that are going to pay dividends in near future.
Note for Beginners: You can buy the shares of a company after it has proposed its dividend and still be eligible to get the dividend. In other words, you do not have to invest in the company for one whole fiscal year, which is a misconception among amateur investors.
The book closure date is simply the date on which the company closes its books for the dividend. Investors can still buy the shares after that date but they won’t get the dividend. To get the dividend of the company, you must buy the shares before the book closure date and you must not sell those shares till the book closure date. For example, investors can buy the shares of a company on the last day before its book closure date and still be entitled to the dividend. The investor remains eligible even if they sell the shares at the book closure date.
Commercial Banks
As of 7th December, 2022, 15 commercial banks have already proposed the dividend for the fiscal year 2078/79. Among them, Bank of Kathmandu has proposed the highest dividend, i.e. 20.95%. Similarly, Century Commercial Bank have paid the least dividend, i.e. 5%.
However, the book closure date for dividends most of these companies have already elapsed, meaning investors won't be able to claim the dividend of these companies. Whereas, Mega Bank's book closure date is on 9th December, 2022.
On the other hand, Book closure dates for SBL, SBI, NMB, PRVU and, CCBL is yet to be announced.
Cash and bonus dividends of companies proposed by the companies listed at NEPSE in the Fiscal Year 2078-79 are as given below.
Development Banks
Similarly, 4 of the total 16 development banks listed in NEPSE have declared the dividend for the fiscal year 2078/79. The book closure dates for all of them has not announced yet. As of now, Garima Bikas Bank has declared the highest dividend viz. 14.5%.
Finance
Out of the listed finance corporations in Nepal, Only ICFC Finance Limited has declared dividends of the F.Y-78/79. Also, the book closure date of ICFC is yet to be announced.
Manufacturing and products
Out of the five companies in manufacturing & products sector, Unilever Nepal Limited declared a massive dividend of 1215%, which is wholly cash based. Also, the book closure dates of UNL and NLO has already elapsed.
Investments
Meanwhile, out of 5 listed only 2 investment companies have declared their dividend of FY-78/79.
Hotel and Tourism
From the hotel and tourism sector, only Soaltee Hotel Limited has declared dividend of 26.3158% of FY 78/79.
Mutual Funds
15 mutual funds have also unveiled the dividend. Sanima Equity Fund proposed the highest dividend of 22% for the fiscal year. However, the book closure date of all of these funds has elapsed.
Micro-Finance
5 out of 59 microfinance companies listed in NEPSE have declared the dividend for the fiscal year 2078/79. Jalpa Samudayik paid the highest dividend of 76.84% followed by Sana Kisan Laghubitta and RMDC paying 27.3684% of the dividend each (Both bonuses as well as cash for tax purpose).
However, the book closure dates for all these microfinance is not yet announced.
Hydropower
Out of the 60 listed hydropower companies, 9 hydropower companies have declared the dividend. As of now, Ridi Power Limited has paid the highest, i.e. 42.1%.
Non-Life Insurance
7 non life insurance companies have announced dividends of Fiscal Year 2078/79. United Insurance has the highest dividend payout scale of 21.05%, whereas the lowest remains for Everest Insurance company. Both of these sectors have recently announced the date as their book closure date. Meanwhile, 2 out of the listed insurance company are yet to disclose their book closure date.
Merchant Bank
11 merchant banks have declared their dividends comprising of both cash as well as bonus dividends. NIC Asia remains at the top position while distributing its dividends. Whereas, Kumari Capital limited declared the least dividend of 5% only. Also, the book closure dates of these merchant banks are yet to be announced.
Disclaimer: This article is intended to keep investors updated about the dividends declared by companies till now. It can be used to compare the trend of dividend proposals among companies and sectors. However, it should be noted that the dividend amount isn't the only valuation metric, and depending on it solely may result in speculation errors. Hence, higher dividend-paying stocks may already have a higher market price (hence reducing the profitability of buying).
Additionally, it is not owning more of something that has little value. Investors in NEPSE are overly attracted to bonus shares distribution, almost as if that is all that matters. As the legendary investor Mark Cuban puts it, a small stake in watermelon is more than 100% of a grape.
