Meghna Life offers highest dividends in 6 years

Meghna Life Insurance has announced 15 percent cash and 15 percent stock dividends for the financial year ended on December 31, 2020. In 2014, the company gave the highest 33 percent dividend, of which, 13 percent were stock dividends.

A meeting of the board of directors recommended the dividends on Wednesday.

The company has also explained the reasons for offering stock dividend for the first time since 2016.

It said stock dividend was not declared from share premium or capital reserve or revaluation reserve or any unrealised gain or out-of-profit earned prior to incorporation of the company or through reducing paid up capital or through doing anything so that the post-dividend retained earnings become negative or a debit balance.

“The company will use the amount of the declared stock dividend to invest in fixed deposit, bond and stock market to enhance the future return on investment and for business expansion,” Meghna Life said in a statement posted on Dhaka Stock exchange website.

The company hopes that shareholders will approve the dividend declared at its annual general meeting scheduled to be held on October 27, 2021.

Last traded price of Meghna’s share was Tk 117.9 in DSE on Thursday, up from Tk 113.5 a day ago.