Published: 13:55, 11 November 2024
The board of directors of two listed companies have announced not to pay dividends to shareholders.
The board of directors of the companies have taken such a decision for the shareholders after reviewing the audited financial reports for the financial year ended June 30, 2024.
The companies are – Atlas Bangladesh Limited and Fas Finance and Investment Limited.
On Monday (November 11), this information was revealed by Dhaka and Chittagong Stock Exchange (DSE-CSE) sources.
This decision regarding the dividend was taken after reviewing and approving the audited financial report of the last accounting year in the board meeting of the companies held earlier on Sunday (November 10).
Atlas Bangladesh: The company posted a loss per share of Tk (2.01) in the last financial year. And on June 30, the net asset value per share (NAVPS) stood at Tk 114. The Annual General Meeting (AGM) will be held on December 24 for shareholders’ approval of Atlas Bangladesh’s declared ‘no’ dividend and other issues. The record date for the shareholder election in Elkshaya has been set on December 1.
Fass Finance & Investments: The company posted an annualized loss per share of Rs (19.37) in the last financial year. And last December 31 net asset value per share (NAVPS) stood at negative (105.42) rupees. The Annual General Meeting (AGM) will be held on December 24 for the approval of the shareholders, including the ‘no’ dividend declared by Fas Finance. The record date for the shareholder election in Elkshaya has been set on December 1.
Dhaka/NT/Eva
How can investors assess the long-term potential of companies that have halted dividend payments?
Time.news Interview: The Impact of Dividend Decisions on Shareholder Trust
Editor: Good afternoon, and welcome to Time.news. I’m thrilled to have Dr. Amelia Foster with us today, a leading financial analyst with a focus on corporate governance and shareholder relations. Dr. Foster, thank you for joining us.
Dr. Foster: Thank you for having me. It’s a pleasure to be here.
Editor: Let’s dive right in. Recent news highlighted that both Atlas Bangladesh and Fas Finance have decided not to pay dividends to their shareholders. What do you think the implications of such decisions are on shareholder trust?
Dr. Foster: Well, it’s a significant decision that can shake the confidence of shareholders. Dividends are often seen as a tangible return on investment, and when companies opt not to pay them, it can lead investors to question the financial health and future prospects of the business.
Editor: Absolutely. Do you think this decision is indicative of broader market trends, or is it specific to these companies?
Dr. Foster: It’s likely a mix of both. On one hand, these companies may be facing unique challenges—whether that’s cash flow issues or strategic shifts that require reinvestment. On the other hand, we have to consider the overall market conditions. If we’re in a downturn or facing economic uncertainty, companies might hold back on dividends to preserve cash.
Editor: That makes sense. For current shareholders, what strategies can they employ in light of this news?
Dr. Foster: Shareholders should stay informed and assess the company’s overall performance beyond just dividend payments. This could involve looking at financial statements, understanding any changes in leadership, and keeping an eye on market conditions. Diversification of their investment portfolio is always a smart strategy as it can help mitigate risks associated with any single investment.
Editor: Great advice. What would you say to investors who might be considering pulling out due to this news?
Dr. Foster: It’s important for investors to avoid reactive decisions based solely on short-term news. Assess the long-term potential of the company. A lack of dividends today doesn’t always indicate poor performance in the future. Companies often reinvest profits to grow, which could yield better returns down the line.
Editor: Very insightful. what can companies do to maintain shareholder confidence in light of such decisions?
Dr. Foster: Transparency is key. Companies should communicate openly about their reasons for not paying dividends and provide clear information about their strategies moving forward. This builds trust and helps investors feel more secure even during uncertain times. Engaging shareholders and keeping them informed can go a long way in managing expectations.
Editor: Thank you, Dr. Foster. This has been an enlightening conversation about a critical topic for investors. We appreciate your expertise and insights.
Dr. Foster: Thank you for having me! It’s important for investors to navigate these waters thoughtfully, and I’m happy to contribute to that understanding.
Editor: And thank you to our readers for tuning in. Be sure to stay updated with us at Time.news for more insights on financial developments. Have a great day!