Square Pharma declares highest dividends in 15 years

Square Pharmaceuticals, the largest drug maker in the country, will pay a 100 percent cash dividend, equivalent to Tk 886 crore, to its shareholders for the year ending on June 30, 2022.

This year’s dividend is Tk 354 crore higher than Tk 532 crore a year ago, according to the company that took the decision at a board meeting on Thursday.

The meeting of the board of directors recommended a 100 percent cash dividend or Tk 10 per share to its shareholders, the highest dividends since 2007. The company paid a 60 percent cash dividend for the financial year 2020-21.

Like the last year, Square Pharma did not offer any stock dividends this year. According to DSE data, Square Pharma has given stock dividends every year since 2002, but 2021 was an exception in two decades.

According to Square Pharmaceuticals, the company’s earnings per share increased to Tk 20.51, up from Tk 17.99 a year ago.

Despite hefty dividends, the demand for Square Pharmaceuticals shares remains very low as its price hovers near the close range of a year. A share of Square Pharma was sold at Tk 209.80 on Thursday.

Square Pharmaceuticals is one of the three largest-cap companies with Tk 18,597 core market capitalization. Over 37 percent of shares are owned by general investors and nearly 35 percent by sponsors and directors, according to Dhaka Stock Exchange.

Another company of the same group, Square Textile has declared a 35 percent cash dividend for its shareholders for the year ended on June 30, 2021.