B Mirror Repot: Thirteen companies delivering exceptional performance in the stock market and offering high dividends have now become a major focus for investors. Despite an overall disappointing market environment in the 2024–25 fiscal year, these firms demonstrated strong positions by declaring dividends of over 50%.

According to the latest data, out of 228 listed companies excluding banks, non-bank financial institutions (NBFIs), and insurance firms, 158 have published financial reports and announced dividends.

The list of high-dividend-paying companies includes Meghna Petroleum (200%), Jamuna Oil (180%), Walton Hi-Tech Industries (175%), Padma Oil (160%), Square Pharmaceuticals (120%), Eastern Lubricants Blenders (80%), United Power (65%), Ibn Sina Pharmaceutical (64%), Renata (55%), Mobil Jamuna (52%), Kohinoor Chemical (50%), BSRM (50%), and BSRM Steels (50%).

Market insiders say that the individual financial performance of listed companies largely determines stock market trends. However, due to weak sales, lower profits, and overall economic pressure, most companies failed to meet expectations, which has affected dividend declarations.

Analysis of disclosed data shows that 80 companies declared dividends below 5%, while 47 companies did not declare any dividend. On the other hand, 49 companies provided dividends above 10%, and 24 companies declared exactly 10%.

In terms of dividend trends, 41 companies increased their dividends compared to the previous year, 55 reduced them, and 62 kept them unchanged.

According to analysts, dividends are a key indicator of a company’s financial strength and its accountability to shareholders. They reflect how effectively a company generates cash flow and shares profits with investors.

They also note that expecting high dividends every year from all companies is not realistic. In many cases, firms choose to reinvest profits for long-term growth instead of paying higher dividends. However, not paying dividends despite making profits sends a negative signal to investors.

Market insiders claim that high interest rates and inflation put companies under significant pressure in the last fiscal year. Reduced purchasing power led to lower sales, while rising borrowing costs reduced profits, negatively impacting dividends.

Meanwhile, analysts believe that in the long term, many companies fail to sustain performance due to poor management, falling behind in competition, and declining interest from entrepreneurs. The tendency of sponsors to sell their shares and exit after listing also weakens the fundamentals of many companies.