Dividend bonanza: Reckitt Benckiser to pay record Tk333 per share

Despite an 8% decline in net profit, Reckitt Benckiser (Bangladesh) PLC – a publicly listed multinational company – has announced a record-high 3,330% cash dividend for 2024.  

This means shareholders of the MNC will receive Tk333 per share for the year ended 31 December 2024.

According to market insiders, the final cash dividend for 2024 is the highest in the company's history. In 2023, it paid a 550% cash dividend, or Tk55 per share, to its shareholders.

Following the board's decision on 7 April, the Dettol and Harpic manufacturer disclosed its annual financials and dividend announcement on the stock exchange's website today.

As per information available from the Dhaka Stock Exchange (DSE), its previous highest dividend payout was a 1,650% cash dividend in 2021.

To approve the dividend, the UK-based company will conduct its annual general meeting on 28 May through a digital platform. The record date has been set for 29 April.

According to its disclosure, the company reported earnings per share (EPS) of Tk159.17 for 2024, which is 8% lower than Tk173.65 in 2023.  

Its net asset value per share increased by 39% to Tk350.64, up from Tk252.56 at the end of 2023.  

However, its net operating cash flow per share declined to Tk22.55, compared to Tk253.56 in the previous year.

The company has requested its shareholders to update their addresses and bank account information in their respective beneficiary owner (BO) accounts before 29 April. It has also asked all stock brokerage houses to provide the names of their margin holders, shareholdings, and other relevant information as of the record date.

Despite the hefty dividend announcement, the company's share price on Tuesday rose by only 0.28% to Tk3,958.70, on a day without a price limit due to the corporate declaration.  

Although the share price surged at the beginning of today's trading session, the day's range fluctuated between Tk3,948 and Tk4,200 per share.

Hefty dividends by MNCs in 2024

In 2024, listed MNCs have been recommending significantly higher dividends compared to previous years.  

So far, eight MNCs have recommended a combined dividend payout of Tk8,141 crore for 2024 – a staggering 120% year-on-year increase.  

The other four multinationals out of the 13 listed on the country's stock exchanges – including Bata Shoe and Heidelberg Materials – have yet to announce dividends for 2024.  

Meanwhile, the remaining two companies – Berger Paints and Marico Bangladesh – follow a March fiscal year-end, meaning their financial declarations will be made later.

Analysts attribute the sharp rise in dividend payouts to easing foreign exchange shortages, which are allowing MNCs to repatriate profits more smoothly. This trend aligns with broader macroeconomic improvements, including better foreign exchange reserves and a stable exchange rate.

The unprecedented dividend hikes highlight improving corporate health and forex conditions. However, market analysts caution that investors should monitor the sustainability of such payouts and remain aware of sector-specific risks going forward.