Thukten Zangpo 

Eleven companies listed with the Royal Securities Exchange of Bhutan (RSEB) have declared dividends and bonus shares for the year 2022 as of yesterday.

This shows that the listed companies have performed well post-pandemic in comparison to previous years.

For the financial year 2020, only two companies declared dividends and five companies declared dividends for 2021.

A few companies have scheduled their annual general meetings (AGM) in the coming days, including Druk Ferro Alloys Limited on April 28, Kuensel Corporation Limited, and Sherza Ventures Limited on April 29. AGM decisions will decide whether to declare dividends and bonus shares.

For the first time in two years, financial institutions (FIs) have declared dividends and bonus shares. Despite making profits, FIs were not previously allowed to declare dividends because FIs were instructed by the Royal Monetary Authority to keep profits as a reserve for unexpected future issues.

Royal Insurance Corporation of Bhutan Limited (RICBL) declared bonus shares in the ratio of 1:7 for the year 2022. That means for every 7 shares the shareholders own, the bank will offer one share. The last time the RICBL declared a dividend was for the year 2017 at 12.6 percent.

Druk PNB Limited declared a dividend of 15 percent. The bank declared a dividend of 15 percent and 12 percent in 2018 and 2017 respectively.

Suppose, a shareholder has 1,000 shares, he or she will get an amount of Nu 1,500 at 15 percent dividend with a face value of Nu 10 per share.

Bhutan National Bank Limited decided on a dividend of 13.8 percent and bonus shares in the ratio of 1:4. The bank declared a dividend of 0.69 percent and 10 percent for 2019 and 2018 respectively.

Similarly, T-Bank Limited will give its shareholders a dividend of 9 percent and bonus shares in the ratio of 1:10. Last time, the bank declared a dividend was for the year 2019 at 11 percent.

GIC-Bhutan Reinsurance Company Limited declared a dividend of 6.95 percent, and Bhutan Insurance Limited decided to issue a 20 percent dividend and 1:1 bonus share.

Bhutan Carbide and Chemicals Limited and Druk Wang Alloys Limited declared a dividend of 110 percent and 10 percent, respectively.

The State Trading Corporation Limited declared a dividend of 25 percent, Bhutan Ferro Alloys Limited 350 percent, and Penden Cement Authority Limited decided to issue bonus shares in the ratio of 1:10.

RSEB officials said that bonus shares would be automatically credited to shareholders’ accounts through the securities exchange system, while the companies will credit the dividend amount after updated shareholders’ lists are submitted.

He added that the shareholders must verify and correct their account details if there are any discrepancies like name of shareholders, citizenship identity card number and banks’ account number. “Any unclaimed dividends over the years will also be paid to shareholders.”