Most of the listed multinational companies (MNCs) have recommended substantial amount of cash dividends for the year ended on December 31, 2019, maintaining their profit growth.
There are eleven MNCs listed on Dhaka Stock Exchange (DSE) which account for approximately 24 per cent of DSE's total market capitalisation.
Of the listed MNCs, nine declared dividend for the year ended on December 31, 2019, so far as of Sunday, according to available data with the DSE and the companies' official disclosures.
Four MNCs declared higher dividends than that of the previous year, two recommended lower, two declared similar to previous year while one declared 'no' dividend.
Market operators said the listed MNCs are declaring significant amounts of cash dividends every year after their listing on the local bourses, as brand reputation, better management and product quality helped them attaining significant growth in profits.
"The multinational companies are well-managed and have reputation of their product quality, making them to earn more and pay hefty dividends," said a merchant banker.
He noted that dividend in cash is an indicator of the financial strength of a company.
Reckitt Benckiser topped the list in terms of dividend declaration this year till date. The company declared a record 1250 per cent cash dividend for the year ended on December 31, 2019.
This is the highest dividend declaration of the company after listing on the premier bourse. In 2018, it disbursed 700 per cent cash dividend.
The company's earnings per share surged 86.64 per cent year-on-year to Tk 131.06 for the year ended on December 31, 2019.
Marico Bangladesh is the second highest in terms of dividend declaration as it declared 750 per cent cash for the year ended on March 31, 2020. This is also the highest dividend declaration of the company after listing on the DSE.
The basic earnings per share stood at Tk 84.01 for the year ended on March 31, 2020 as against Tk 64.23 in the previous year.
GlaxoSmithKline became the third highest in terms of dividend declaration as the company declared 530 per cent cash for the year 2019. The company's EPS stood at Tk 81.83 for the year ended on December 31, 2019.
Linde Bangladesh, a pioneer in industrial gases in Bangladesh, declared 500 per cent cash dividend for the year ended on December 31, 2019. Its EPS stood at Tk 80.93 for the year ended on December 31, 2019.
The British American Tobacco Bangladesh offered 400 per cent cash dividend for the year ended on December 31, 2019. The largest market cap company in the country's stock market- GP- approved 130 per cent cash dividend for the year ended on December 31, 2019.
Singer Bangladesh has declared 77 per cent cash dividend for the year ended on December 31, 2019. In 2018, the company disbursed 30 per cent stock dividend.
The LafargeHolcim declared 10 per cent cash dividend for the year ended on December 31, 2019. In 2018, the company also paid 10 per cent cash dividend.
Heidelberg Cement declared 'no' dividend for the year ended on December 31, 2019 as the company incurred a loss of Tk 186.4 million.
The company has also reported EPS of Tk 3.30 in the negative for the year ended on December 31, 2019 which was Tk 14.33 in 2018. In 2018, the company disbursed 75 per cent cash dividend.
Bata Shoe Bangladesh and Berger Paints Bangladesh are yet to declare dividend. However, Bata Shoe disbursed 345 per cent cash and Berger Paints paid 250 per cent cash dividend last year.
