Cash Dividend

A cash payment distributed to shareholders from a company's profits.

Definition

A cash dividend is a portion of a company's profit paid directly to shareholders in cash, usually expressed as a percentage of the share's face value. On the DSE, a 10% cash dividend means Tk 1 per share on a Tk 10 face value. Assetick shows the last declared cash dividend and its year for each company.

How it is calculated

On the DSE, dividends are quoted as a percentage of face value, which is almost always Tk 10. A 25% cash dividend therefore pays Tk 2.50 per share. Dividend yield — the cash dividend relative to the current market price — is a separate and often more useful figure.

How to read it

A consistent cash dividend signals a company generating real cash and willing to return it to shareholders. But a very high dividend can also mean the company sees limited reinvestment opportunity. Always read the dividend alongside earnings — a dividend larger than EPS is not sustainable long-term.

For DSE investors

Cash dividends are a major driver of DSE investing, especially for income-focused investors. Assetick's scanner has a 'dividend above 50%' preset, and each stock page shows the dividend history so you can judge consistency, not just the latest figure.

Frequently asked questions

How is a DSE cash dividend calculated?+

DSE dividends are a percentage of the Tk 10 face value, not the market price. A 20% cash dividend pays Tk 2 per share regardless of what the share currently trades at.

What is the difference between cash and stock dividend?+

A cash dividend pays money directly to shareholders. A stock dividend (bonus share) issues additional shares instead of cash, increasing share count without paying out cash.

This explanation is for educational purposes only and does not constitute investment advice.