Nepal Stock – Highest Dividend Paying Stocks


Now in Nepal, most people are attracted to the Stock market, especially the younger age people who know the importance of investment for a better future. We all know that the Nepal Stock market is not that large as compared to stock markets in other parts of the world but it’s an emerging market. Nepal only has one stock market that is NEPSE, whereas other bigger nations may have more than one market within a country as in the US, India, China, etc.

Recently after the nation-wide lockdown was partially lifted, there is an increase in Nepali Stock market buyers. More numbers of buyers are seen in the market and recent IPO shares of Ajod Limited were applied by almost 5 lakh DEMAT accounts which is the highest number of all-time in Nepalese Stock Market history. It is obvious to realize that there will be more investors in the upcoming years in NEPSE. We have created this article to show you which company has issued or proposed the highest dividend in the Nepal Stock Exchange Market. So let’s start and before we begin, let’s learn what is Dividend and how it is paid.

Nepal Stock: Highest Dividends Paying Stocks

Here is the list of companies that have provided the highest total dividend in terms of percentage. We have also added the proposed dividends that will be given by the companies. The total percentage of dividends is the average Cash dividend and bonus share.

  • Unilever Nepal Limited – 770%

Unilever Nepal Limited has proposed a cash dividend of amount Rs 770 in the fiscal year 2075/76 which makes it the largest company with the highest dividend rate. It has proposed a cash dividend of Rs 770 with no bonus shares in the F/Y 2075/76.

The Unilever Nepal Limited has reported a turnover of Rs 5.75 Arba with a net profit of Rs 1.06 Arba during the Fiscal Year 2075/76. It is one of the most sought-after stocks because of the attractive dividend that it pays every year to its shareholders.

Ticker: UNL

Sector: Manufacturing and Products

Share Registrar: Sunrise Capital Limited (NCM/NIDC)

Total Listed Shares: 920700 units

Total Paid Up Value: 92,070,000

Cash Dividend: 770

Bonus Share: 0

Total Dividend Percentage: 770%

Hindustan Unilever Limited of India is the parent company of Unilever Nepal Limited. Since 1956, the company has been operating in India and at that time the brands used to be imported to Nepal from India.

In 1992, Unilever Nepal Limited was started in Nepal as Nepal Lever Limited. Its initial investment was of 73.65 million Nepalese Rupees in Makwanpur district where they set-up their first factory. Initially, Nepal Lever Limited only produced products like detergents, cleaning powders, toothpaste, and toilet soaps. They used to export these products and from the third year of production, in the year 1995, they started to earn profits from their productions.

However, from the year 2000, the exports of Unilever products gradually decreased and completely stopped in the year 2004. After the year 2004, they shifted their focus from exporting to expanding within Nepal and started to grow in Nepalese markets. With this shift in focus, the company also changed its name from Nepal Lever Limited to Unilever Nepal Limited. Now it’s the highest dividend-paying company in Nepal.

  • Himalayan Distillery Limited – 102.63%

Himalayan Distillery Limited has provided a cash dividend of amount Rs 52.63 as well as the company has also provided 50 Bonus Shares. This makes the total Dividend of Himalayan Distillery Limited of about 102.63% in the fiscal year 2075/76 which makes it the second company with the highest dividend rate in NEPSE.

Ticker: HDL

Sector: Manufacturing and Products

Share Registrar: Nabil Investment Banking Limited

Total Listed Shares: 5,784,683 units

Total Paid Up Value: 578,468,300

Cash Dividend: 52.63

Bonus Share: 50

Total Dividend Percentage: 102.63%

Himalayan Distillery Limited is a well-renowned manufacturing company that is developing and manufacturing the market quality of alcoholic beverages in a competitive manner in Nepal. As there are many national and international companies producing beverages which makes it a more competitive market.

Himalayan Distillery Limited (HDL) was established in 1985 A.D as a Private Company registered under Company Act 2021. However, in the year 2000, the Himalayan Distillery Limited was converted to a Public Limited Company. The Himalayan Distillery Limited has been successful over a period of time to be at the top in the liquor market of Nepal. Jawalakhel Distillery Pvt. Ltd was the parent company of Himalayan Distillery Limited which was the largest private company in Nepal’s liquor market at that period of time.

Himalayan Distillery Limited offers different varieties of alcoholic products that are produced with the help of Hi-tech processes in Nepal. The annual production capacity of Himalayan Distillery Limited is more than 11.76 million liters. Himalayan Distillery has maintained the quality of its products equivalent to international standards. The factory of Himalayan Distillery is located at Birgunj.

  • National Microfinance Bittiya Sanstha Limited – 80%

National Microfinance Bittiya Sanstha Limited has provided a cash dividend of amount Rs 5 as well as the company has also provided 75 Bonus Shares. This makes the total Dividend percentage of National Microfinance Bittiya Sanstha Limited of about 80% in the fiscal year 2075/76.

Ticker: NMFBS

Sector: Microfinance

Share Registrar: NIBL Ace Capital Limited

Total Listed Shares: 2,640,453 units

Total Paid Up Value: 264,045,300

Cash Dividend: 5

Bonus Share: 75

Total Dividend Percentage: 80%

National Microfinance Bittiya Sanstha Limited (NMBSL) started its operation in 2014 as a National Level microfinance Institution. On October 30, 2014, the National Microfinance Bittiya Sanstha Limited was registered as a public company and they received the operation license on June 11, 2014, from Nepal Rastra Bank to operate as a “D” Class Financial Institution.

National Microfinance Bittiya Sanstha Limited (NMBSL) is providing one window financial solutions to their customers with a wide range of products and services. They even offer customized services as per the needs of the customers. NMBSL has been providing different services and products to exceed customer expectations in all areas of its Business.

  • Mirmire LaghuBitta Bittiya Sanstha Limited – 47.37%

Mirmire LaghuBitta Bittiya Sanstha Limited has proposed a cash dividend of amount Rs 2.37, as well as the company, has also proposed 45 Bonus Shares. This makes the total proposed Dividend percentage of Mirmire LaghuBitta Bittiya Sanstha Limited of about 47.37% in the fiscal year 2075/76.

Ticker: MMFDB

Sector: Microfinance

Share Registrar: Nepal SBI Merchant Banking Limited

Total Listed Shares: 1,038,585 units

Total Paid Up Value: 103,858,500

Cash Dividend: 2.37

Bonus Share: 45

Total Dividend Percentage: 47.37%

Mirmire Laghubitta Bittiya Sanstha Limited has been providing retail microfinance services in Nepal. They provide various loan offers, such as General, Foreign Employment, Education, Home Construction, Agro Equipment, Alternate Energy, Seasonal, Discipline, Emergency, Micro Entrepreneur, Business loans, and SRG Loan. The company also provides deposit products, including saving accounts, pension saving, central welfare funds, and Mirmire Pewa deposits, and remittance services.

It operates in Rasuwa, Nuwakot, Dhading, Dolakha, Gulmi, Kavrepalanchowk, Rolpa, Salyan, Makwanpur, Chitwan, Nawalparasi, Palpa, Rukum, Pyuthan, Arghakhanchi, Solukhumbu, Okhaldhunga, Khotang, Sindhuli, Surkhet, Bara, Parsa, Rupandehi, Banke & Kailali districts. The company was incorporated in 2009 and is based in Kavre, Nepal. Mirmire Laghubitta Bittiya Sanstha Limited provides retail microfinance in Nepal.

  • Suryodaya Laghubitta Bittiya Sanstha Limited – 46.82%

Suryodaya Laghubitta Bittiya Sanstha Limited has proposed a cash dividend of amount Rs 2.34, as well as the company, has also proposed 44.48 amount of Bonus Shares. This makes the total proposed Dividend percentage of Suryodaya Laghubitta Bittiya Sanstha Limited of about 46.82% in the fiscal year 2075/76.

Ticker: SLBS

Sector: Microfinance

Share Registrar: Global IME Capital Limited (Elite)

Total Listed Shares: 1,559,214 units

Total Paid Up Value: 155,921,400

Cash Dividend: 2.34

Bonus Share: 44.48

Total Dividend Percentage: 46.82

Suryodaya Laghubitta Bittiya Sanstha Limited’s head office is located in Putalibazar-1, Syangja, Nepal. It was registered as a Public Limited Company on 17th December 2012 under Company Act 2006. Suryodaya Laghubitta Bittiya Sanstha Limited has obtained the operating license from the Central bank of Nepal, Nepal Rastra Bank, as a “D” class financial institution on 20th June 2013. It has been operating under the Bank and Financial Institution Act 2006.

It formally started its microfinance services from 16 July 2013 from its first branch office located in Putalibazar-1, Syangja. It is also providing its services in other districts which are Syangja, Manang, Myagdi, Lamjung, Rolpa, Mustang, Parbat, Baglung, Gulmi, and Pyuthan districts which are in hilly & mountain areas of Nepal. So, the company has been able to make its identity as one of the reliable and trustworthy financial institutions in Nepal.

  • Forward Community Microfinance Bittiya Sanstha Limited – 45%

Forward Community Microfinance Bittiya Sanstha Limited has provided a cash dividend of amount Rs 12.5 as well as the company has also provided 32.5 amount of Bonus Shares. This makes the total proposed Dividend percentage of forward Community Microfinance Bittiya Sanstha Limited of about 45% in the fiscal year 2075/76.

Ticker: FOWAD

Sector: Microfinance

Share Registrar: NMB Capital Limited

Total Listed Shares: 4,971,494 units

Total Paid Up Value: 497,149,400

Cash Dividend: 12.5

Bonus Share: 32.5

Total Dividend Percentage: 45%

Forward Community Microfinance Bittiya Sanstha Ltd. (FCMFBSL) is a national level Microfinance development bank. It was established on September 13, 2012, under Company Act 2006 of Nepal.

Forward Community Microfinance Bittiya Sanstha Limited is licensed under the “D” Class financial institution by Nepal Rastra Bank, the central bank of Nepal on 19th March 2013 to perform financial transactions in Nepal. It formally commenced its operation from 17th May 2013.

Before the establishment of Forward Community Microfinance Bittiya Sanstha Ltd., an NGO called “Forum for Rural Women Ardency Development (FORWARD)” was providing microfinance services since December 2002 which was later transformed into “D” Class financial institution, Forward Community Microfinance Bittiya Sanstha Limited, in the year 2012.

Check also: Best 10 Small Business scopes in Nepal [Business in Nepal]

  • Nepal Doorsanchar Company Limited – 45%

Nepal Doorsanchar Company Limited has provided a cash dividend of amount Rs 45 in the fiscal year 2075/76 with no bonus share. This makes the total percentage of Dividend of Nepal Doorsanchar Company Limited of 45% in the FY 2075/76.

Ticker: NTC

Sector: Telecom

Share Registrar: Nepal Doorsanchar Company Limited

Total Listed Shares: 150,000,000 units

Total Paid Up Value: 15,000,000,000

Cash Dividend: 45

Bonus Share: 0

Total Dividend Percentage: 45%

Nepal Telecom is carrying the legacy of 72 years now, but any form of the telecommunication service history in Nepal dates to 1973 B.S. Though, it was the year 2005 B.S. when Telecom service was formally established in Nepal after the establishment of MOHAN AKASHWANI.

Later in the First National Five-year plan (2012-2017), to advance the telecommunication service, the Telecommunication Department was established in 2016 B.S. And later on, in the third five-year plan (2023-2028), it was converted to Telecommunication Development Board in the year 2026 BS to modernize the telecommunications services as well as to expand its services.

It was established as a fully owned Government Corporation called Nepal Telecommunications Corporation in 2032 BS after the enactment of Communications Corporation Act 2028. After 29 years of its pride services towards the nation, Nepal Telecommunication Corporation was transformed into a public Limited company, under the Company Act 2053, known as Nepal Doorsanchar Company Limited (NDCL) from Baisakh 1, 2061. However, it is more popularly known to the public with its brand name “Nepal Telecom” as its registered trademark.

Nepal Telecom is providing better service in recent years and successfully competing with privately-owned companies with a better service and reputation than it had before. To provide world-class services to its customers, technologies best meeting the needs of the present time have always been selected by the company. It has nation-wide reach from urban areas to most remote locations of the Himalayan nation Nepal.

Nepal Doorsanchar Company Limited’s widespread reach has been assisting the socio-economic development of the as well as rural areas of Nepal. The most important infrastructure for the development in the present world is telecommunications and for globalization, the company has been proved to be a milestone.

From a government-owned monopoly to a business-oriented, customer-focused company, Nepal Telecom has been successful in every form in Nepal and stands out at the top in the competitive environment with thousands of customers.

  • Deprosc Laghubitta Bittiya Sanstha Limited – 45%

Deprosc Laghubitta Bittiya Sanstha Limited has provided a cash dividend of amount Rs 15 as well as the company has also provided 30 amounts of Bonus Shares. This makes the total proposed Dividend percentage of Deprosc Laghubitta Bittiya Sanstha Limited of about 45% in the fiscal year 2075/76.

Ticker: DDBL

Sector: Microfinance

Share Registrar: Siddhartha Capital Limited

Total Listed Shares: 10,054,335 units

Total Paid Up Value: 1,005,433,500

Cash Dividend: 15

Bonus Share: 30

Total Dividend Percentage: 45%

Deprosc Laghubitta Bittiya Sanstha Limited was registered on Jan 12, 2001, under the Company Registration Act 1997. It obtained a license from the Central bank of Nepal, Nepal Rastra Bank, for its operation on July 3, 2001, under the Bank and Financial Institution Act 2007. The company is promoted with the equity participation of Nabil Bank Ltd, Agriculture Development Bank Limited, Nepal Bank Limited, Lumbini Bikas Bank Limited, CEAPRED (NGO), Development Project Service Center (NGO), and former bankers who have 15-20 years of work experience.

The authorized issued capital of the institution is Rs 1 billion and the authorized paid-up capital is Rs. 773.41 million. The Deprosc LaghuBitta Bittiya Sanstha Limited has expanded its services to 70 districts of Nepal with the approval of Nepal Rastra Bank.

The districts where the Deprosc LaghuBitta Bittiya Sanstha Limited operates are Bhojpur, Dhankuta, Ilam, Jhapa, Khotang, Morang, Okhaldhunga, Panchthar, Sankhuwasabha, Solukhumbu, Sunsari, Taplejung, Terhathum and Updaypur of Province Number 1 and in Province Number 2 Bara, Dhanusha, Mahottari, Parsa, Rautahat, Saptari, Sarlahi, and Siraha.

Similarly, in Bagmati Province, the districts are Chitwan, Dhading, Dolakha, Lalitpur, Makwanpur, Nuwakot, Ramechhap, Rasuwa, Sindhuli, Kavrepalanchowk, and Sindhupalchowk.

In Gandaki Province, Baglung, Gorkha, Nawalpur, Parbat, Syangja, Kaski, Lamjung, Myagdi and Tanahun. In Province Number 5, Arghakhanchi, Bardiya, Dang, Gulmi, Kapilvastu, Banke, Parasi, Palpa, Pyuthan, Rolpa and Rupandehi.

In Karnali Province, Dailekh, Jajarkot, Mugu, Salyan, Surkhet, Western Rukum, Jumla and Kalikot, whereas in Sudurpaschim Province, Dadeldhura, Darchula, Doti, Achham, Baitadi, Bajhang, Bajura, Kailali and Kanchanpur.

Check also: Business Investment Opportunities & Ideas in Nepal

  • Chhimek Laghubitta Bikas Bank Limited – 44.34%

Chhimek Laghubitta Bikas Bank Limited has proposed a cash dividend of amount Rs 17.22, as well as the company, has also proposed 27.12 amount of Bonus Shares. This makes the total proposed Dividend percentage of Chhimek Laghubitta Bikas Bank Limited of about 44.34% in the fiscal year 2075/76.

Ticker: CBBL

Sector: Microfinance

Share Registrar: NMB Capital Limited

Total Listed Shares: 15,000,000 units

Total Paid Up Value: 1,500,000,000

Cash Dividend: 17.22

Bonus Share: 27.12

Total Dividend Percentage: 44.34%

Chhimek Laghubitta Bittiya Sanstha Limited (CLBSL) was established in December 2001. In January 2002, the company has received a micro-finance banking license from the Nepal Rastra Bank. Chhimek Laghubitta Bittiya Sanstha Limited (CLBSL) has been developed from the micro-finance that was started by Neighborhood Society Service Centre (NSSC), a national level NGO. It first started its operation only in Mahottari and Chitwan districts in central Nepal in the ’90s.

Chhimek Laghubitta Bittiya Sanstha has been providing improved access to financial services for the poor and marginalized women members. It has been successful in promoting a culture of saving, supports micro-enterprises development, encourages income generation, and provides social security services to its members.

Chhimek Laghubitta Bittiya Sanstha Limited has reached out to more than 370,000-woman clients of rural and marginalized communities in 68 districts with 136 branches across the country by the end of 2019.

The company started with a small paid-up capital of sum Rs 10 million Nepalese Rupees, and by the end of 2019, the core fund of Chhimek’s Laghubitta has increased nearly 150 times.

The leading commercial banks of Nepal are the promoters of the Chhimek Laghubitta Bittiya Sanstha Limited as well as the Neighborhood Society Service Centre (NSSC) and individual shareholders also. Chhimek Laghubitta Bittiya Sanstha Limited is listed in the Nepal Stock Exchange (NEPSE) market as CBBL. The shares of Chhimek Laghubitta Owned in percentage is as follows:

Nabil Bank Ltd: 11.98% of the total shares

Bank of Kathmandu Lumbini Ltd: 9.98% of total shares

Himalayan Bank Ltd.: 11.98% of the total shares

Neighbourhood Society Service Centre: 12% of total shares

Individual shareholders: 18.71% of Total Shares

Public Shareholders: 35.35% of Total Shares

Chhimek Laghubitta Bittiya Sanstha Limited has been providing an ecosystem to provide business development services to its members as well as to improve access for the quality education to its members.

  • Unnati Laghubitta Bittiya Sanstha Ltd – 40.63%

Unnati Laghubitta Bittiya Sanstha Ltd has proposed a cash dividend of amount Rs 2.03, as well as the company, has also proposed 38.6 amount of Bonus Shares. This makes the total proposed Dividend percentage of Unnati Laghubitta Bittiya Sanstha Ltd of about 40.63% in the fiscal year 2075/76.

Ticker: UMB

Sector: Microfinance

Share Registrar: Siddhartha Capital Limited

Total Listed Shares: 882,750 units

Total Paid Up Value: 88,275,000

Cash Dividend: 2.03

Bonus Share: 38.6

Total Dividend Percentage: 40.63%

Unnati Laghubittya Bittiya Sanstha Limited (UNNATI) is a D class financial Institution established in 2070 B.S. The company has obtained a license from Nepal Rastra Bank as per Bank and Financial Institutions Act 2003. It has been providing services to the underprivileged peoples throughout the country with a record of increasing profitability.

The company is serving in 15 districts with 39 branch offices on the operation. Unnati Laghubittya Bittiya Sanstha Limited has utilized the chance to create markets, as well as brought people in from the limitations and gave them the tools with which they can help themselves to recover from poverty.

The focus of Unnati Laghubittya Bittiya Sanstha Limited is low-income households, assets-less, self-employed individuals. Besides the financial services provided by Unnati Laghubittya Bittiya Sanstha Limited, they also focus on social development, skill development, cultural promotion, educational development, and various other services through their 39 branches.

 

Nepal Stock – Top Companies of Different Sectors that provides the Highest Dividends

We have also categorized different companies in the following list as the top 3 companies in the specific sectors which have paid or proposed the highest dividend in the fiscal year 2075/76. Here are the Top 3 Highest Dividend Paying Companies of various sectors in Nepal with their name and the total percentage of Dividend:

Commercial Banking Sector:

NMB Bank Limited – 35%

Nabil Bank Limited – 34%

Agriculture Development Bank Limited – 30%

Development Banks:

Lumbini Bikas Bank Limited – 20%

Miteri Development Bank Limited – 19.5%

Kailash Bikas Bank Limited – 18.77%

Finance Sector:

Janaki Finance Limited – 23.16%

Banking Finance and Insurance Institution of Nepal Limited – 20%

Shrijan Finance (Bittiya Sanstha) – 15.79%

Hotels:

Taragaon Regency Hotel Limited – 12.63%

Soaltee Hotel Limited – 26.32 %

Oriental Hotels Limited – 15.79%

Hydropower:

Butwal Power Company Limited – 28%

Chilime Hydropower Company Limited – 25%

Sanima Mai Hydropower Ltd. – 10.53%

In Manufacturing and Processing:

Unilever Nepal Limited – 770%

Himalayan Distillery Limited – 102.63 %

SHIVAM CEMENTS LTD – 15.79%

Microfinance:

National Microfinance Bittiya Sanstha Ltd. – 80%

Mirmire LaghuBitta Bittiya Sanstha Limited – 47.37%

Suryodaya Laghubitta Bittiya Sanstha Ltd. – 46.82%

Mutual Funds:

NMB Sulav Investment Fund-1 – 15%

Laxmi Value Fund-1 – 15%

Siddhartha Equity Fund – 11%

Non-Life Insurance:

Prabhu Insurance Ltd. – 16.32%

Lumbini General Insurance Co. Ltd. – 8.54%

Neco Insurance Co. Ltd. – 8.16%

Tradings:

Salt Trading Corporation – 35%

Other Stocks:

Nepal Doorsanchar Company Limited – 45%

Nepal Stock Exchange Limited – 40%

ICRA Nepal Limited – 33.68%

What is a Dividend?

A dividend is a distribution of some of the profits of the company to its shareholders. If a publicly listed company earns a profit or surplus, they pay dividends to the investors as a reward for putting their money into the venture. Payouts of dividends are generally announced after a proportional increase or decrease in a company’s stock value. Dividends can be paid by the company in the form of cash as a cash dividend or in the form of additional stocks as share dividends.

In comparison between a stock dividend and cash dividend, a stock dividend is considered better and superior as they have some additional benefits over cash dividend like you won’t have to pay tax for stock dividend but in case of cash dividend, you do have to pay. And another thing is when you get a stock dividend, you get options to keep your profit as stock or you can change it into cash but in case of cash dividend, you won’t get two options as you will only have the option of having cash only.

A company may provide both cash and stock dividend, or anyone of it as a Dividend. The total dividend of a Company is calculated as the total sum of the percentage of both stock and cash dividend.

How to buy stocks in Nepal?

There are two markets in NEPSE that are Primary Market and Secondary Market. You will have to create a DEMAT account, then you can purchase or sell stocks in these markets. But your account on the primary market will have DEMAT account and the DP will provide you DEMAT check if you want to sell the stocks that you own for which broker will create a new account for you, and with your DEMAT account, you can buy stocks from the secondary market too through a broker. As both markets have different limitations and features. If you’re a beginner, it is advised to create an account in the primary market only and if you think you are ready for taking higher risk, then the secondary market is always open for you.

From a Primary Market, you can obtain,

IPO (initial public offer), FPO (further public issue), and Right and bonus shares. Whereas, from Secondary you can purchase any listed companies’ stocks through stockbroker or online using user login provided by NEPSE. Before entering to the Secondary market, please remember it has a higher risk, so you must have to buy or sell researching and analyzing the market.

To invest in the stock market, one needs to have a DEMAT account. You can create your DEMAT account in one of the Broker’s offices or by visiting your bank where you already have an account (almost all banks provide this service through their securities company). Ask them to provide the Meroshare account and CRN number also, so you can use the Meroshare website to purchase stocks online.

To maintain your Meroshare account, they charge an annual fee of Rs 50. Whereas for DEMAT account annual charge is Rs 100, so in total, you will have to pay Rs 150 annually to buy stocks online from your mobile or laptop. By linking your DEMAT account with your bank account, Banks will automatically manage the payments in the case of the Primary Market. But in the secondary market, you must have to call or visit the broker’s office to buy or sell a stock, however, you can now pay some broker’s fee from connectIPS, QPay, Khalti, and eSewa. And for Meroshare and DEMAT account renewal fee, you can use Khalti, eSewa, Debit Cards, ConnectIPS, QPay whereas you can Renew few DP’s DEMAT accounts from IME Pay, CellPay and Prabhu Pay app.


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