Last year, the companies listed at the Bucharest Stock Exchange (BVB) offered the highest dividend yield in the world, according to Berenberg Bank research, with a return of almost 8 percent for BVB’s main index BET.
According to Tradeville, the forecasts for this year are just as encouraging.
“For this year, we expect big companies to offer dividend yields well above inflation rate and interest than offered for RON-denominated deposits in the banking system,” Calina Mihali, Tradeville investment analyst, stated in a press release.
Banca Transilvania (TLV) ranks 1st in a Tradeville top of companies with the highest dividend yields. The financial institution is known for its generous dividends from previous years. For 2017, Tradeville analysts estimate a mix of bonus shares and dividends.
Proprietatea Fund (FP) is the second, the analysts expecting a dividend yield of 11.3 percent this year, while some of SIFs – which are also in the top 10 – could benefit from the extraordinary distribution made last year by Banca Transilvania.
Romania’s National Gas Transmission Company Transgaz (TGN) ranks 3rd which could provide, according Tradeville, the most consistent dividend yield of state-owned companies.
SOEs show this year a particular attention for investors, considering that the Government approved at end-January, the a memorandum that requires its representatives in the General Shareholders Meetings to propose and vote in favor of a distribution of minimum 90 percent of profit in 2016, to collect more money to the state budget. From this decision will benefit the shareholders with stakes in state companies, both small investors and investment funds.
For the study, Tradeville used data on profit according to 9-mo financial results.