The government decided that state-run companies will pay at least 85% of their net profits as dividends next year, compared to 90% in 2010. The bulk of the dividends go to the state budget, but minority shareholders will in turn receive higher amounts, distributed in proportion to the number of shares held.
Transgaz
The most profitable company on the stock exchange currently is Transgaz, which reported net profit of 284 million lei (EUR66.2 million) in the first nine months. If the profit stays the same at the end of the year, the company would pay dividends of RON241.4 million, i.e. a gross dividend per share of RON20.5. The yield of the gross dividend would therefore be 9.5% of Wednesday’s share price of RON215.5. The yield on the net dividend (after tax payment) would be around 8%, above the interest rate offered by banks on one-year deposits.
Conpet
Petroleum products transporter Conpet is also one of the state-run companies that posts high profits every year. In the first nine months, Conpet posted net profit of RON28.8 million. The company could distribute dividends of RON24.5 million from this profit, i.e. a gross dividend of RON2.83 per share. The gross dividend yield would be 8.2%, while the net dividend would near 7%.
Transelectrica
Power grid operator Transelectrica could come back as one of the top dividend distributors this year, after reporting a net profit of RON153.5 million in January to September. If this profit is kept until the end of the year, the company could pay RON130.5 million in dividends, or a gross dividend of RON1.78/share. At a share price of RON17.34, the gross dividend yield could be 10.2%, and the net yield 8.6%.
Fondul Proprietatea
The list of companies that will pay significant dividends will also include Fondul Proprietatea (FP.RO). The fund made a net profit of RON535 million from dividends collected from companies in its portfolio and from interests in the first nine months. The fund’s manager Franklin Templeton pledged to distribute all profits from dividends and interests to shareholders, so the value of the gross dividend could be RON0.0388/share. The price of the fund’s share is now RON0.423, which amounts to a gross yield of 9.1% and a net yield of 7.7%.
SIFs
At least two SIFs could in turn distribute higher dividends than the annual bank interest rates, namely SIF Moldova (SIF2.RO) and SIF Transilvania (SIF3.RO), which this year collected the entire amount from the sale of their stakes in BCR to Erste Group Bank (EBS.RO). The yields on the two SIFs’ dividends could therefore climb to 20%. (EUR1=RON4.2875)
(English version by Daniela Stoican)