1. An appraisal of the Dividend Policy of Atlas Bangladesh Limited

2. Mohammad Moin Alam 2007-2-10-161 (sec: 1). Asifur Rahman
Mohammad Moin Alam (sec: 1) Asifur Rahman (sec: 3) Aisha Siddika Laboni (sec: 1) Fatema Khanom (sec: 3) Jason Rubel Das (sec: 3) Syed Asif Aziz (sec: 3)

3. Background
An enterprise of Bangladesh Steel & Engineering Corporation.
Established in 1966.
Nationalized in
Initial Public Offered in public 49% , BSEC 51%
Motorcycle (ranging from 50cc to 150cc) & 3- wheeler (Mishuk).

4. Theories of Dividend Policy Dividend irrelevance theory.
Dividend relevance theory.
“Bird in the Hand Theory”

5. Dividend Policy of Atlas Bangladesh limited.
Year
Net Income (millions)
Growth (%)
2005
69.32
2006
71.79
3.56
2007
101.02
40.71
2008
96.89
-4.08
2009
n/a
2010
287.74
196.97

6. Dividend Policy of Atlas Bangladesh limited.
Year
EPS
Growth (%)
2005
17.33
2006
11.97
-30.92
2007
12.63
5.51
2008
9.69
-23.27
2009
22.39
131.06
2010
21.58
-3.61

7. Dividend Policy of Atlas Bangladesh limited.
Year
EPS
Dividend Per Share
Dividend Payout Ratio
2005
17.33
100
5.77
2006
11.97 85
7.101
2007
12.63
120
9.501
2008
9.69
10.319
2009
22.39 75
3.349
2010
21.58
4.634

8. Dividend Policy of Atlas Bangladesh limited.
Year
Cash Dividend (%)
2005
100
2006 85
2007
120
2008
2009 75
2010

9. Dividend Policy of Atlas Bangladesh limited.
Year
Stock Dividend
2005 50
2006 33
2007 25
2008
n/a
2009
2010
33.33

10. Dividend Policy of Atlas Bangladesh limited.
Year
Cash Dividend
Stock Dividend
Percentage Dividend
2005
100 50
150%
2006 85 33
118%
2007
120 25
145%
2008
n/a
100%
2009 75
75%
2010
33.33
133.33

11. Findings Paid more than 100% cash dividend in 4 year.
Also neglected stock dividend in 2 year
Clearly not retaining any earning for expansion or development
perfect example for the “BIRD IN THE HAND” theory.