Listed multinational companies (MNCs) have declared substantial amount of cash dividends for the year ended on December 31, 2017, maintaining their earnings growth.
Of the 11 MNCs, which account for approximately 28 per cent of Dhaka bourse's market capitlisation, maintained steady growth and offered dividends to their shareholders.
"The multinational companies are well-managed and have reputation of their product quality, making them to earn more and pay hefty dividends every year," said an analyst at a leading brokerage firm.
He noted that the investors also put their fund in those companies with an expectation to get higher returns as their fundamentals are very strong.
Of the MNCs, eight companies recommended higher dividends than that of the previous year, one lower and two others declared similar to previous year, according to data from the Dhaka Stock Exchange (DSE).
Reckitt Benckiser topped the list in terms of dividend declaration. The company recommended a total of 790 per cent cash dividend for the year ended on December 31, 2017. In 2016, the company disbursed 775 per cent cash dividend.
The company's earnings per share (EPS) stood at Tk 80.63 for the year ended on December 31, 2107 as against Tk 62.66 for the year ended in 2016.
BATB is the second highest in terms of dividend declaration as the company declared 600 per cent cash for the year 2017. In 2016, the company also paid 600 per cent cash dividend. The company's EPS stood at Tk 130.50 in 2017 as against Tk 126.37 in 2016.
Marico Bangladesh also offered 600 per cent cash for the year 2017. In 2016, the company disbursed 500 per cent cash dividend. The company's EPS stood at Tk 52.15 in 2017 as against Tk 45.72 in 2016.
Berger Paints disbursed a total of 600 per cent cash dividend for the 15 months period ended on March 30, 2017. The company also paid a total of 600 per cent cash dividend for the previous year.
The company's ESP stood at Tk 109 for 15 months period ended on March 30, 2017 as against Tk 77.23 for the same period in the previous year.
GlaxoSmithKline is the third highest in terms of dividend declaration as the company declared 550 per cent cash for the year 2017. In 2016, the company disbursed 500 per cent cash dividend. The company's EPS stood at Tk 55.56 in 2017 as against Tk 53.51 in 2016.
Linde Bangladesh, a pioneer in industrial gases in Bangladesh, recommended 340 per cent cash dividend for the year 2017. In 2016, the company paid 310 per cent cash dividend. The company's consolidated EPS stood at Tk 62.60 in 2017 as against Tk 57.90 in 2016.
Bata Shoe declared a total of 335 per cent cash dividend for the year ended on December 31, 2017. In 2016, the shoemaker disbursed a total 330 per cent cash dividend. The company's EPS 82.34 in 2017 as against Tk 76.24 in 2016.
Grameenphone (GP) recommended a total of 205 per cent cash dividend for the year 2017 while it paid 175 per cent cash dividend in 2016. The lone listed mobile phone company's EPS stood at Tk 20.31 in 2017 as against Tk 16.68 in 2016.
Heidelberg Cement declared 150 per cent cash dividend for the year in 2017. The multinational cement maker disbursed 300 per cent cash dividend in 2016. The company's EPS stood at Tk 14.21 as against Tk 26.69 in 2016.
Singer Bangladesh recommended 100 per cent cash dividend for year ended on December 31, 2017. The company disbursed 70 per cent cash dividend the previous year. The company's consolidated EPS stood at Tk 9.89 in 2017 as against Tk 7.12 in 2016.
LafargeHolcim recommended total of 10 per cent cash dividend for the year ended in 2017. The multinational cement maker also paid 10 per cent cash dividend in 2016. The company's consolidated ESP stood at Tk 0.69 in 2017 as against Tk 1.92 in 2016.
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