The 16 companies in 2014 reported total profits worth around RON5.2 billion. Part of these companies have already proposed a gross dividend per share to shareholders. Taking into account the already proposed dividends and considering the companies that haven’t made a dividend proposal, yet, will maintain 2014 disbursement rates, the 16 companies are likely to award total dividends worth RON3.1 billion to shareholders.
Energy companies and SIFs are likely to bring investors the biggest dividend gains, which could go as high as 11%.
“Historically, dividends have made a significant part of total gains registered by Bucharest bourse investors, securing as much as half of their gains,” says Adrian Cojocar, general manager of SAI Intercapital Investment Management.
Still, high dividends returns do not guarantee fat gains on the bourse and investors need to analyze to what extent dividends are sustainable on the long term.
“Theoretically, high dividends returns make investors buy stock, which has happened in recent years, especially as interest rates are down,” says Octavian Molnar, general manager of IFB Finwest brokerage.
According to him, investors should also look at companies’ outlooks.
Adrian Cojocar is of the same opinion, saying that in the past five-six years dividend returns were the main indicator investors took into account when buying stock and 2015 is no exception. “Nevertheless, I believe that in the upcoming years investors will gradually focus increasingly more on businesses’ growth outlooks”.
(English version by Catalina Apostoiu)