Petrom (SNP.RO) and Fondul Proprietatea (FP.RO) have allocated the highest amounts for the payment of dividends this year, and SIF Transilvania (SIF3.RO) and SIF Muntenia (SIF4.RO) offered the best yields.
The number of companies which reward their shareholders with dividends rose from 25 to 29, but the decline comes from large companies. BRD, the second-largest Romanian bank, aluminum maker Alro Slatina (ALR.RO) and SIF Banat-Crisana (SIF1.RO) no longer pay dividends this year, while last year they had together paid almost RON400 million. BRD and Alro had losses last year, while the shareholders of SIF Banat-Crisana decided not to pay dividends from the 2012 profit.
The dividends paid by Petrom and by gas transmission company Transgaz Medias (TGN.RO) are not at last year’s level, either. Petrom cut its dividends from RON1.76 billion to RON1.59 billion, although its profit was higher in 2012, while Transgaz reduced its dividends from RON350 million to RON250 million because its profit fell.
On the other hand, regional investment funds SIF and Fondul Proprietatea are set to pay higher dividends than last year (with the exception of SIF1, which will not pay any dividends). The dividends of SIF Muntenia (SIF4.RO) are up 65%, to RON108 million, while Fondul Proprietatea is set to pay 6% higher dividends than last year.
SIFs also top the ranking of the highest dividend yields. SIF Transilvania (SIF3.RO) is for the third consecutive year no. 1 in this ranking, with a yield of 26.8%. The investment company pays total dividends of RON191 million, 2% more than last year. But the dividend payments leave less money in the company for investments and this results in a decline in net assets, which also has a negative impact on the price of shares.
At SIF Muntenia (SIF4.RO) the dividend yield is 18% and at SIF Moldova (SIF2.RO) it is 17%. But the SIF 2 dividend registration date has passed and the price was adjusted down by 19% on the ex dividend date. Basically the higher the dividends the lower the share price on the ex-dividend date (the date when the shareholder is no longer entitled to collect dividends). Next week is ex-dividend day at SIF Transilvania, Biofarm and Petrom.
Only some of the companies have also announced the day when dividend payment is set to start. The late payment of dividends erodes investor yields.
(English version by Daniela Stoican)