Sector-wise dividend payment by all listed companies in Dhaka stock exchange : an empirical analysis

Abstract

Purpose: The purpose of this article is to examine the sectorwise dividend payment of all the listed companies in the Dhaka Stock Exchange (DSE). This paper also indicates the highest and lowest percentage of dividend paid by companies in each sector, as well as illustrates the reason for distributing such amount of dividend. Design/methodology/approach: The empirical analysis was done by using the last fifteen years (i.e., 2004-2018) of dividend payment by all listed firms in DSE. Data was collected from the secondary sources to perform the analysis. On collected data, average dividend amount was calculated for each listed company by adding the percentage of cash and stock dividend paid by those companies. Trend analysis was performed on the average dividend to see which company among all listed companies is distributing a high or low percentage of dividend to their shareholders' over the years. Findings: The results from this article show that companies in the declining industry fail to meet their shareholders’ expectations in terms of dividend payment. On the other hand, companies in booming industries are consistently disbursing dividend for their shareholders’. Besides, companies are in the growth stage, and the multinational companies are distributing a considerable percentage of dividend. Practical implications: The results of this article will be helpful for the fund managers’, investment analysts’ and investors’ who makes decisions to invest in the capital market because the paper presented the historical average dividend payment by listed companies. Originality/value: This article presents the average dividend payment by companies listed in stock exchange in an emerging economy, also finds out sector-wise dividend payment and suggests some remedial for companies.