The Dhaka Stock Exchange (DSE) has recommended a 1.7 percent cash dividend for the fiscal year 2024–25, marking its lowest payout in nearly ten years amid declining profitability and weak core operations.

According to a price-sensitive disclosure issued on Monday, the DSE’s annual general meeting (AGM) to approve the dividend will be held on 18 December, with 10 November set as the record date.

Data from previous years show a steady decline in the bourse’s dividend payouts. The DSE distributed a 10 percent cash dividend in FY2016–17, which fell to 6 percent in FY2022, 4 percent in FY2023, and 3.3 percent in FY2024. The latest recommendation of 1.7 percent continues this downward trend, reflecting shrinking shareholder returns.

The fall in dividends mirrors the DSE’s weakened financial performance. In the last fiscal year, its earnings per share (EPS) dropped 49 percent year-on-year to Tk 0.173, while net asset value (NAV) stood at Tk 10.42 per share and net operating cash flow turned negative at Tk –0.168 per share.

DSE sources said the exchange incurred around Tk 49 crore in losses from core operations such as transaction fees, data sales, listing charges, and training income. However, non-operating income — mainly interest from fixed deposits and bond investments (around Tk 100 crore) and rental income exceeding Tk 10 crore — helped the bourse post a modest net profit of approximately Tk 33 crore.

Analysts say the DSE’s reliance on investment and rental income to sustain shareholder returns highlights its limited earnings capacity from operations.

Market observers added that the declining dividend trend could affect investor sentiment, particularly as the DSE prepares for the eventual IPO of its remaining 35 percent stake. Currently, around 250 brokerage firms hold a 40 percent stake, while a Chinese consortium owns 25 percent of the exchange.