Investment fund Fondul Proprietatea, gas producer Romgaz, and BRD Groupe Societe Generale, the third biggest bank in Romania, may pay the highest dividends of the companies listed on the Bucharest Stock Exchange this year.
The cash dividends that these companies may propose to their shareholders amount to over 12% of their current share price, according to an analysis by local brokerage firm Prime Transaction.
While in Fondul Proprietatea’s case there’s a certain degree of uncertainty related to the cash distributions, state-owned gas producer Romgaz is almost sure to distribute 90% of its net profit from 2017 to its shareholders as the government plans to continue the high dividend payout strategy at its companies. Also, BRD has already announced that it would propose the distribution of 83% of last year’s net profit to its shareholders.
State-owned gas transporter Transgaz and power producer Nuclearelectrica may also pay dividends representing over 11% of their current share prices. Oil transport company Conpet may distribute all of its profit from 2017 to its shareholders, resulting in a yield of 7.8%. Oil and gas group OMV Petrom, which is controlled by Austrian group OMV, has also announced that it would distribute some 46% of its net profit from 2017 to shareholders.
The cash dividend stands for 6.5% of the current share price. The Bucharest Stock Exchange, investment funds SIF Transilvania and SIF Moldova, and lender Banca Transilvania are also expected to pay significant dividends, of over 5% of their current share prices.
Companies listed on the Bucharest Stock Exchange have been offering significant dividend yields in the last years.