Last call for dividends on the Bucharest Stock Exchange: Large companies offer gross yields between 4% and 8%

Over 30 companies listed on the Bucharest Stock Exchange’s main market will pay dividends to their shareholders from the net profits recorded in 2020. The gross dividend yields go as high as 20% for several smaller companies, while some large blue-chip companies offer yields of between 4% and 8%, based on the current market prices.

For the investors who bought shares in these companies last year or at the beginning of this year, the yields are even higher, considering that the BET index is up over 18% year-to-date and 38% year-on-year.

For several companies, the dividends are just around the corner. For example, Wednesday (May 12) is the last day when investors can buy OMV Petrom (SNP) shares to benefit from dividends. The company will start the payments to shareholders on June 7. OMV Petrom is also the most generous of the big companies on BVB this year as it pays a gross dividend of RON 0.031 per share (6.6% dividend yield), similar to last year, despite its profit shrinking in 2020 amid the pandemic. However, the company decided to distribute its full profit and some of the reserves from previous years to keep shareholders happy.

This is not the case with all companies on BVB. Some large state-controlled companies have significantly reduced their dividends compared to previous years as they are also expected to make significant investments this year. Still, some of them still pay attractive dividends. Power producer Nuclearelectrica (SNN), electricity distributor Electrica (EL), and gas producer Romgaz (SNG) offer gross dividend yields of over 5.4%. Meanwhile, gas transporter Transgaz (TGN), pays a divided representing only 2.8% of its share price, significantly lower than in previous years. Power grid operator Transelectrica (TEL), which proposed a dividend yield of around 3%, had its proposal rejected by the majority shareholder, which called for a new general shareholders’ meeting and implied that the company should pay higher dividends. Oil pipe operator