Only a small part of this money will be used for investments in stocks, though.
“Less than half of the dividends the stock market investors collect (for the free float of the listed companies i.e.) are invested back on the stock market. This means less than 10% of the total dividends,” said Razvan Pasol, chairman of stockbroker Intercapital Invest.
“Dividend reinvestment is higher at SIFs (regional investment funds i.e.) and Fondul Proprietatea, where the free float is bigger.”
More than RON1.2 billion will exit Romania going to OMV, the majority shareholder of Petrom, the US Elliott and City of London private equity funds (the main shareholders of Fondul Proprietatea) and other foreign investors.
Another RON490 million will go the state budget in form of dividends from Petrom, Transgaz and Transelectrica.
Fondul Proprietatea will collect RON360 million. The money could return to the market through the stock repurchase conducted by the fund. Accounting-wise, the dividends it collects from the companies in its portfolio form the basis for the dividends it will pay the following year.
Total dividends to be paid by listed companies this year amount to RON3 billion, 18% less than last year, when they reached RON3.65 billion. Petrom and Transgaz are paying less, while BRD (BRD.RO) and Alro (ALR.RO) are not disbursing any because they posted losses. SIF and Fondul Proprietatea’s dividends are higher in 2013.
(English version by Loredana Fratila-Cristescu)