Last year, the companies listed on Bucharest Stock Exchange offered the highest dividend yield in the world, according to a report by investment bank Berenberg.
Thus, the companies in BVB’s main index BET paid a 7.9% dividend yield in 2016, while the forecasts are also encouraging for this year, Tradevillle said.
Tradeville study includes banks, investment funds and state-owned companies. Banca Transilvania ranks first, as it could offer a combination of free shares and dividends.
Fondul Proprietatea ranks second, with an expected dividend yield of 11.3% for this year, while some of the regional investment fund SIFs, which are also in top ten, could benefit from the extraordinary distribution carried out by Banca Transilvania last year.
The third company in the ranking, Transgaz, could offer the highest dividend yield among the state-owned companies, according to Tradeville.
Investors started to become interested in state-owned companies after the government approved a memorandum in January stipulating that its representatives in the general assembly of the shareholders should propose and vote for a distribution of minimum 90% of 2016’s profit, in order to collect more money to the state budget. The decision would also be beneficial to shareholders with stakes in state-owned companies, both small investors and investment funds.