Introduction: Why Dividends Matter to Investors
Investing in dividend-paying stocks in NEPSE is one of the best ways to generate passive income for long-term investors. In 2024, several companies are offering attractive dividend yields. Investing in dividend-paying stocks in NEPSE provides a steady income stream and reduces the reliance on stock price appreciation alone for returns. Dividend stocks are beautiful to investors who want both stability and passive income. In this post, we’ll highlight the companies on the Nepal Stock Exchange (NEPSE) that have announced the highest dividends in 2024.
1. Top Dividend Announcements for 2024
Here’s a list of some of the top dividend-paying companies in NEPSE for 2024:
| Company | Cash Dividend (%) | Bonus Shares (%) | Total Dividend (%) | Dividend Payment Date |
|---|---|---|---|---|
| Unilever Nepal Limited (UNL) | 0.00 | 100.00 | 100.00 | 2024-10-09 |
| Yeti Brewery Limited (YETIBL) | 100.00 | 100.00 | 200.00 | 2024-01-14 |
| Secured Securities Limited (SSL) | 100.00 | 5.26 | 105.26 | 2023-12-15 |
| CDS & Clearing Limited (CDS) | 100.00 | 0.00 | 100.00 | 2023-12-22 |
| Care Ratings Nepal Limited (CARE) | 80.00 | 0.00 | 80.00 | 2023-11-10 |
| Nepal Stock Exchange Limited (NEPSE) | 64.00 | 0.00 | 64.00 | 2023-12-24 |
| Bottlers Nepal (Terai) Limited (BNT) | 60.00 | 0.00 | 60.00 | 2024-01-05 |
| NIC Asia Capital Limited (NICACL) | 52.53 | 0.00 | 52.53 | 2024-08-01 |
| Nepal Doorsanchar Company Limited (NTC) | 40.00 | 0.00 | 40.00 | 2024-01-04 |
| SuryaJyoti Life Insurance Company Limited (SJLIC) | 10.26 | 24.74 | 35.00 | 2024-04-19 |
2. High Dividend Yields Across Different Sectors
1. Consumer Goods: Unilever Nepal Limited (UNL)
Unilever Nepal has a strong track record of rewarding its shareholders with generous bonuses and is considered a high dividend-paying stock in NEPSE. While their cash dividend for 2024 is zero, their 100% bonus shares offer a great way to grow your portfolio.
Dividend Overview:
- Bonus Shares: 100%
- Dividend Payment Date: October 9, 2024
2. Breweries: Yeti Brewery Limited (YETIBL)
Yeti Brewery stands out in 2024 with a remarkable 200% total dividend. For investors looking for high returns, this brewery stock offers both cash and bonus dividends.
Dividend Overview:
- Cash Dividend: 100%
- Bonus Shares: 100%
- Dividend Payment Date: January 14, 2024
3. Hydropower & Energy: Bottlers Nepal (Terai) Limited (BNT)
Bottlers Nepal (Terai) continues to be a strong player in the market, offering a 60% cash dividend to its shareholders. This makes it an attractive investment for those looking for steady passive income.
Dividend Overview:
- Cash Dividend: 60%
- Dividend Payment Date: January 5, 2024
3. Key Metrics for Dividend Investors to Watch
When investing in dividend-paying stocks, it’s essential to analyze more than just the dividend percentage. Here are some critical metrics to help you evaluate these companies:
1. Dividend Yield
The dividend yield is the percentage of a company’s stock price that is paid out in dividends annually. For example, if a stock is trading at NPR 1,000 and offers an NPR 60 dividend, the dividend yield is 6%.
2. Dividend Payout Ratio
This ratio shows the portion of a company’s earnings that is paid out as dividends. A lower payout ratio (40-60%) is generally sustainable, while higher ratios may indicate the company is overextending its payout.
3. Stability of Dividend Payments
Look for companies with a history of stable or growing dividends. The consistency of dividend payments often signals a company’s strong financial health.
4. How to Invest in Dividend-Paying Stocks in NEPSE
To invest in any of these high dividend-paying stocks in NEPSE, you will need to follow these steps:
- Open a DEMAT Account: This is essential for trading on NEPSE.
- Register for Meroshare: The online platform where you can manage your stocks and track dividends.
- Choose a Reliable Broker: Work with a licensed stockbroker who can execute your trades.
- Research and Invest: Analyze the company’s dividend history and financial performance before making any investments.
Learn more: Step-by-Step Guide to Investing in NEPSE
Conclusion: Maximize Your Passive Income with NEPSE Dividend Stocks
Investing in dividend-paying stocks on NEPSE offers an excellent way to build wealth through passive income. By selecting companies with a strong track record of dividend payments—like Unilever, Yeti Brewery, and Bottlers Nepal—you can ensure steady returns and grow your portfolio over time.
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