Highest Dividend Yield stocks in Nepal?

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What Is Dividend Yield?

Dividend yield is also called dividend price ratio/Dividend by price per share and it is focused for long term/mid-term investors.

Dividend Yield is a financial ratio that measures the importance of dividend i.e cash or bonus share paid out to shareholders to the market price per share. Dividend Yield equals to (Dividend/Price) that shows how much a company pays out in dividend (cash or bonus) each year relative to its stock Price.

The Formula of Dividend yield is as follows:

Dividend Yield: (Annual dividend / Market value) * 100

Example of Dividend Yield  

Suppose Company BOKL stock is trading at LTP 305 and pays latest annual dividends is 16. Dividend Yield is 5.25% 

However, we have made some changes in formula according to the Nepal stocks Markets. The modified formula of Dividend Yield is as Follows:

Dividend Yield: (Average 3 Years Annual dividend / Market value) * 100

Example of Dividend Yield  

Suppose a Company’s BOKL stock is trading at LTP 305 and average 3 years annual dividend is  19.33. Hence, Dividend Yield shall be 6.34% 

Please find the Stocks in Nepal whose dividend Yield is highest as of LTP date 6 May 2021.

Banking: NMB, BOKL, NIB

Development Bank: MNBBL

Finance: JFL

Life Insurance: NLIC

Non-Life insurance: SICL

 Note: The analysis is based on 3 years average dividend Yield and Latest Trading Price/closing Price as of 6 May 2021. If the LTP increases or decreases Dividend Yield vice versa.


2 thoughts on “Highest Dividend Yield stocks in Nepal?”

  1. Sakar Bista says:

    Keep sharing your knowledge and idea sir. Gradually, every Nepali should have the money management understanding and right set of skills to make productive investments.
    Thank you.

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