Over five dozen listed companies to skip dividends this FY, Shareholders left disappointed

KATHMANDU — Dividend season, typically a period of optimism for capital market investors, has turned disappointing for thousands of shareholders as more than five dozen companies listed on the Nepal Stock Exchange (NEPSE) have announced they will not distribute any dividends from last year’s profits.

According to the latest available data, more than 80 NEPSE-listed companies have announced dividends so far. However, figures obtained by FIscal Nepal show that at least five dozen listed companies have formally decided not to provide cash or bonus shares to their shareholders, triggering frustration among retail and institutional investors alike.

Banks and Finance Companies Opt Out

Among commercial banks, 13 institutions have announced dividends, but Kumari Bank and Nepal Bank have decided not to distribute dividends from last year’s earnings. Kumari Bank has called its 25th Annual General Meeting (AGM) for January 13 (Poush 30), while Nepal Bank has yet to announce its AGM date.

In the finance sector, while three companies have proposed dividends, five finance companies have chosen not to distribute any returns. Company secretaries of Central Finance, Reliance Finance, Guhyeshwari Merchant Banking & Finance, and Nepal Finance confirmed that their respective boards have decided against dividend payouts. Janaki Finance has also called its 27th and 28th AGMs for January 3 (Poush 19) without any dividend proposal.

Hotels, Insurance, and Manufacturing Firms Also Hold Back

Out of four hotel companies that earned profits last year, Oriental Hotel conducted its 28th AGM on September 9 without proposing dividends.

In the insurance sector, while most companies are announcing dividends, Guardian Micro Life Insurance has opted to leave shareholders empty-handed. The company has scheduled its third AGM for December 29 (Poush 14) without any dividend agenda.

Similarly, both Bottlers Nepal Balaju and Bottlers Nepal Terai have called their 47th and 39th AGMs respectively for January 7 (Poush 23), but neither company has proposed dividends. Recently IPO-listed Srinagar Agritech Industries has also called its third AGM for January 8 (Poush 24) without dividends, while Sagar Distillery will hold its third AGM on January 11 (Poush 27) with no dividend proposal.

Microfinance Institutions Disappoint Investors

Although 13 microfinance institutions have announced dividends, Laxmi Laghubitta, Aarambha Chautari Laghubitta, and Suryodaya Womi Laghubitta have decided not to distribute dividends. CEOs and company secretaries of these institutions confirmed that profits from the last fiscal year will not be shared with shareholders.

Nepal Republic Media has called a special general meeting on December 23 (Poush 8) without dividends. In the energy sector, Pure Energy has already completed its eighth AGM without dividends, while Jhapa Energy has scheduled its seventh AGM for January 2 (Poush 18) with no dividend proposal.

Hydropower Sector Dominates the No-Dividend List

The hydropower sector accounts for the largest share of dividend-less companies. Of the 97 hydropower companies listed on NEPSE, only 15 have announced dividends. More than 35 hydropower companies have officially decided not to distribute dividends from last year’s earnings.

Companies such as Manakamana Engineering, Arun Kabeli, Upper Syange, Molung Hydro, Bikash Hydro, and Upper Mailung Khola Hydropower have already completed their AGMs without dividend proposals. Himalayan Hydropower, Sanima Middle Tamor, Swet Ganga Hydropower, Rawa Energy Development, Terhathum Hydropower, Barahi Hydropower, and Green Life Hydropower have followed the same path.

According to BikasNews, Himalayan Urja Bikas, Buddhbhumi Nepal Hydropower, Middle Bhotekoshi, Mai Khola Hydropower, Makar Jitumaya Suri Hydropower, Sagarmatha Hydropower, and Shubham Power have also concluded their AGMs without dividends.

Several other hydropower companies—including Panchthar Power, Ingwa Hydropower, Vision Lumbini Urja, Union Hydropower, Radhi Bidyut, Panchakanya Mai Hydropower, People’s Hydropower, Chirkhwa Hydropower, Trishuli Hydropower, Sayapatri Hydropower, Ridi Power, Upper Solu Hydroelectric, Chhyangdi Hydropower, Mandakini Hydropower, Balephi Hydropower, and Nyadi Hydropower—have scheduled AGMs throughout January, but none have included dividend distribution on their agendas.

The growing number of dividend-skipping companies has raised concerns over profitability quality, cash flow pressures, and sector-specific structural challenges, particularly in hydropower and financial services, at a time when investor confidence in Nepal’s capital market remains fragile.