Paramount Insurance announces cash dividend after three years
Paramount Insurance's stock price more than doubled in the last one year but its lower dividend disheartened stock investors.
The insurer, which got listed in 2007, yesterday announced 2 per cent stock and 2 per cent cash dividend for its shareholders for the 2019 financial year. In the previous year, the company provided only 5 per cent stock dividend.
Every non-life insurance should have Tk 40 crore of paid-up capital as per the Insurance Act 2010. At present, its paid-up capital is Tk 33.22 crore. So, it has been giving stock dividend every year since 2005 save for 2016, when it announced 2 per cent cash dividend.
Market analysts said the company's earnings per share rose to Tk 1.17, which was Tk 0.52 in the previous year.
As the insurance companies' shares were on a rising trend last year, some insurers' stocks rose for any good reason.
In 2019, Paramount Insurance's stocks soared 115.7 per cent to Tk 37.
During this time, the company itself alert stock investors that there was no undisclosed price sensitive information that could explain the abnormal rise in its price.
However, despite the alert, Paramount Insurance's stock kept sailing.
The company's net operating cash flow per share is Tk 0.51.
Established in November 1999, the insurer is a subsidiary of Paramount Group. Its shares closed at Tk 37.10 yesterday, up 3.34 per cent from the previous day.
Comments