In the world of stocks, there are two main ways people in Bangladesh earn money:
✅ Dividends – Payments you receive from companies you invest in.
✅ Capital Gains – Profits from selling a stock at a higher price than you bought it.
Both methods are valuable—and smart investors often use both.
📦 What Are Dividends?
A dividend is a portion of a company’s profit that’s shared with shareholders. Many large, stable companies in Bangladesh pay dividends regularly.
How It Works:
- Dividends are usually paid once or twice a year.
- It’s shown as a BDT amount per share or percentage yield.
Example:
If a company announces a BDT 5 dividend per share, and you own 100 shares, you’ll receive BDT 500 directly to your account.
Benefits of Dividends:
✅ You earn steady income even if the stock price doesn’t move
✅ Great for long-term investors who want cash flow
✅ You can reinvest the dividends to buy more shares and grow your portfolio faster
Popular dividend-paying companies on the DSE include:
British American Tobacco Bangladesh (BATBC), Grameenphone (GP), Renata, and Square Pharma
📈 What Are Capital Gains?
A capital gain is the money you make by selling your stock at a higher price than you bought it for.
Example:
You bought 100 shares of a company at BDT 100
Later you sell those shares at BDT 130
That’s a BDT 30 gain per share, or BDT 3,000 total profit
Why Capital Gains Matter:
✅ Potential for large returns over time
✅ Common in fast-growing companies (tech, consumer goods, etc.)
✅ Helps grow your overall investment faster than just dividends
🧠 Dividends vs. Capital Gains: Which Is Better?
There’s no one right answer—it depends on your goals.
| Investor Type | What to Focus On |
| Want regular income | Dividend-paying stocks |
| Looking for high growth | Stocks with capital gain potential |
| Want a mix | Combine both strategies for balance |
📊 Dividend Trends in Bangladesh
Not all companies on the DSE pay dividends. Here’s what to know:
- High dividend stocks are often in banking, telecom, or pharmaceuticals
(Example: GP, Islami Bank, Square Pharma) - Low or no dividend stocks usually belong to growth-stage companies investing in expansion
Before you buy, always check a company’s dividend history, payout ratio, and profit record.
💼 Taxes in Bangladesh (Important!)
Understanding taxes helps you keep more of what you earn:
- Dividends in Bangladesh are generally tax-free up to BDT 50,000 (subject to change based on NBR rules)
- Capital gains from listed companies are tax-exempt for individual investors (currently, but check annually)
⚠️ Always stay updated with rules from the National Board of Revenue (NBR) or consult a tax advisor if unsure.
📌 Tips for Everyday Investors
✅ Reinvest Your Dividends
If your broker allows it, consider using dividends to buy more shares (compounding power)
✅ Mix Dividend & Growth Stocks
Don’t rely only on one type. Get income + long-term growth.
✅ Watch the Ex-Dividend Date
To qualify for the next dividend, make sure you buy before this date.
✅ Keep an Eye on Company News
Dividends can be cut during hard times—always monitor company updates.
🤔 Common Questions
Q: Are dividends guaranteed?
A: No. If a company faces losses or uncertainty, it can reduce or cancel dividends.
Q: How often are dividends paid in Bangladesh?
A: Most companies pay once a year, some pay twice. Always check the company’s financial calendar.
Q: Should I focus on dividends or capital gains?
A: Both are useful. If you need income, go for dividends. If you’re saving for the long term, capital gains can boost your returns. Many investors use both.
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