1. Commercial Banks
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Why: Strong balance sheets, consistent dividend history, and earnings stability.
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Examples: Large commercial banks like NABIL, NBL, or Global IME often distribute steady dividends and benefit from Nepal’s growing financial sector.
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Sustainability: Banks are essential for credit expansion, remittance inflows, and digital banking growth.
2. Insurance Companies
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Why: Growing insurance penetration in Nepal means long-term expansion potential.
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Examples: Life insurers (like NLIC, HGI) and non-life insurers (like SICL, NLICL) are known for regular bonus shares and cash dividends.
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Sustainability: Mandatory insurance regulations and increasing financial literacy support sector growth.
3. Hydropower Companies
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Why: Nepal’s natural hydropower potential and increasing domestic demand + export opportunities to India.
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Examples: Established players like Butwal Power (BPCL), Chilime (CHCL), or Sanima Hydro (SHPC) have started offering stable dividends after project completion.
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Sustainability: Renewable energy sector with long-term government support and cross-border trade prospects.
4. Strong Microfinance Institutions (MFIs)
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Why: While risky if overvalued (like USLB), some MFIs have sustainable growth models.
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Examples: Well-managed ones such as SKBBL or CBBL with decent EPS and steady expansion.
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Sustainability: Microfinance remains key for rural credit access, but choose those with balanced growth and reasonable valuations.
5. Dividend Kings (Consistency Over Hype)
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Look for companies with a 10+ year track record of regular dividends rather than chasing one-time high payouts.
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These are safer bets for passive income investors in NEPSE.
📌 Strategy
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Diversify across 2–3 sectors (e.g., Banks + Hydro + Insurance).
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Focus on low P/E and reasonable P/B ratios compared to peers.
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Avoid chasing hype in microfinance and small hydros unless fundamentals back it.
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Accumulate in downturns, since NEPSE moves in cycles.
