1. Commercial Banks
-
Why: Strong balance sheets, consistent dividend history, and earnings stability.
-
Examples: Large commercial banks like NABIL, NBL, or Global IME often distribute steady dividends and benefit from Nepal’s growing financial sector.
-
Sustainability: Banks are essential for credit expansion, remittance inflows, and digital banking growth.
2. Insurance Companies
-
Why: Growing insurance penetration in Nepal means long-term expansion potential.
-
Examples: Life insurers (like NLIC, HGI) and non-life insurers (like SICL, NLICL) are known for regular bonus shares and cash dividends.
-
Sustainability: Mandatory insurance regulations and increasing financial literacy support sector growth.
3. Hydropower Companies
-
Why: Nepal’s natural hydropower potential and increasing domestic demand + export opportunities to India.
-
Examples: Established players like Butwal Power (BPCL), Chilime (CHCL), or Sanima Hydro (SHPC) have started offering stable dividends after project completion.
-
Sustainability: Renewable energy sector with long-term government support and cross-border trade prospects.
4. Strong Microfinance Institutions (MFIs)
-
Why: While risky if overvalued (like USLB), some MFIs have sustainable growth models.
-
Examples: Well-managed ones such as SKBBL or CBBL with decent EPS and steady expansion.
-
Sustainability: Microfinance remains key for rural credit access, but choose those with balanced growth and reasonable valuations.
5. Dividend Kings (Consistency Over Hype)
-
Look for companies with a 10+ year track record of regular dividends rather than chasing one-time high payouts.
-
These are safer bets for passive income investors in NEPSE.
📌 Strategy
-
Diversify across 2–3 sectors (e.g., Banks + Hydro + Insurance).
-
Focus on low P/E and reasonable P/B ratios compared to peers.
-
Avoid chasing hype in microfinance and small hydros unless fundamentals back it.
-
Accumulate in downturns, since NEPSE moves in cycles.
No comments:
Post a Comment