In the 2024-25 fiscal year, the boards of 39 companies have announced cash dividends exclusively for ordinary shareholders, even though some of these companies’ financial statements show that directors could have received dividends but chose not to. Many of these companies have significant investments from their entrepreneurs and directors.
Ordinary investors view this as a positive move. However, the exact reason for directors waiving their dividends remains unclear. Market experts suggest that directors and entrepreneurs of listed companies often receive various benefits ranging from office facilities to staff salaries which reduces the personal impact of foregoing cash dividends. Essentially, while directors waive dividends on one hand, they may still gain from other perks.
Between 26 October and 24 November, the boards of these companies held dividend-related meetings, resulting in the exclusive allocation to ordinary shareholders. Current regulatory restrictions on cash dividend distribution have made it challenging for many companies. While bonuses can be issued by showing artificial profits, cash dividends require actual liquidity, making selective distribution necessary.
Minhaz Mannan Emon, director of the Dhaka Stock Exchange (DSE), told mida that many companies announce dividends only for ordinary shareholders due to limited cash availability. Without regulatory pressure, they might have issued only bonus shares to maintain category requirements.
An unnamed company secretary added that some company authorities are involved in share trading, often inflating profits on paper. Consequently, even when financial statements show capability, actual cash may be insufficient to distribute dividends to all shareholders, leading companies to prioritize ordinary shareholders.
Selected Companies Announcing Cash Dividends for Ordinary Shareholders:
| Company Name | Cash Dividend | EPS |
| Orion Infusion | 20% | 1.71 |
| Sonali Life | 15% | 1.73 |
| Navana Pharma | 14% | 4.50 |
| Fine Foods | 14% | 4.18 |
| MK Footwear | 12% | 1.83 |
| Aman Feed | 11.50% | 0.22 |
| Mir Akhtar | 10.50% | 1.72 |
| Craftsman Footwear | 10.50% | 1.55 |
| Malek Spinning | 10% | 7.41 |
| Dorin Power | 10% | 3.19 |
| Asiatic Lab | 10% | 2.09 |
| Esquire Knit | 10% | 0.44 |
| Aman Cotton | 10% | 0.21 |
| Navana CNG | 10% | 0.10 |
| Aftab Auto | 10% | (1.37) |
| GQ Ballpen | 10% | (1.83) |
| JMI Hospital | 5% | 1.86 |
| Bengal Windsor | 5% | 0.55 |
| Khulna Power | 5% | 0.29 |
| Hakkani Pulp | 5% | 0.07 |
| National Polymer | 5% | 0.07 |
| Desh Garments | 3% | 0.73 |
| Mostafa Metal | 2% | 0.45 |
| Ifad Autos | 2% | (0.27) |
| Energypack Power | 2% | (5.50) |
| Intraco Refueling | 1.25% | 0.86 |
| Silkco Pharma | 1.10% | 0.41 |
| Fu-Wang Ceramic | 1% | 0.11 |
| Shepherd Industries | 1% | 0.04 |
| Golden Harvest | 1% | (0.24) |
| Sea Pearl | 1% | (2.46) |
| Nahi Aluminium | 1% | (7.18) |
| Advend Pharma | 0.50% | 0.72 |
| Queen South | 0.50% | 0.20 |
| Dragon Sweater | 0.50% | 0.14 |
| Ligachi Footwear | 0.50% | 0.05 |
| Dominez | 0.35% | 0.05 |
| VFS Thread | 0.25% | 0.09 |
| Munnu Fabrics | 0.25% | 0.04 |
This selective cash dividend strategy highlights the challenges companies face in balancing regulatory requirements, financial capability, and investor expectations.
