BM Desk : Several foreign companies listed on the Bangladesh stock exchange have lately announced cash dividends that exceeded their net profits, which has market analysts worried. They think that this unanticipated tendency is a secret sign that they are limiting their long-term activities in the country and are reluctant to reinvest.
According to the Dhaka Stock Exchange (DSE), Grameenphone announced a cash dividend of Tk 4,456 crore against a net profit of Tk 3,630 crore, making it the company that has given the largest dividend, according to the Dhaka Stock Exchange (DSE). LafargeHolcim paid Tk 113 crore, and Marico Bangladesh paid Tk 619 crore.
Furthermore, a number of other businesses, such as Unilever, Linde BD, RAK Ceramics, Singer Bangladesh, Robi Axiata, and Reckitt Benckiser, have also announced dividends that are greater than their profits.
However, the general tendency is similar, with BATBC, Heidelberg Cement, Berger Paints, and Bata Shoes paying significantly lower dividends than their profits. Together, they made almost Tk 8,167 crore in net profit. Nevertheless, they announced distributions of approximately Tk 9,794 crore, which is Tk 1,626 crore higher than their net profit.
Grameenphone announced a cash dividend of Tk 4,456 crore against a net profit of Tk 3,630 crore, making it the company that has given the largest dividend, according to the Dhaka Stock Exchange (DSE). LafargeHolcim paid Tk 113 crore, and Marico Bangladesh paid Tk 619 crore.
Furthermore, a number of other businesses, such as Unilever, Linde BD, RAK Ceramics, Singer Bangladesh, Robi Axiata, and Reckitt Benckiser, have also announced dividends that are greater than their profits.
However, the general tendency is similar, with BATBC, Heidelberg Cement, Berger Paints, and Bata Shoes paying significantly lower dividends than their profits. Together, they made almost Tk 8,167 crore in net profit.
Nevertheless, they announced distributions of approximately Tk 9,794 crore, which is Tk 1,626 crore higher than their net profit.
Even though the businesses claim to be abiding by the regulations, it is still unclear why they aren’t making fresh investments in Bangladesh if there are sufficient opportunities for expansion there. Do they simply view Bangladesh as a place where they can make money?
Market players think that if this pattern keeps up, it might put sustained strain on the nation’s stock market and economy as a whole. In this regard, it is critical that policymakers decide what to do right away.
