Local lender Banca Transilvania, investment fund Fondul Proprietatea, and gas carrier Transgaz could provide this year the highest dividend yields among the big companies listed on the Bucharest Stock Exchange (BVB), according to an analysis by local brokerage firm Tradeville.

“This year we expect that big companies offer dividend yields well above the inflation rate and the interest rate offered by local banks for deposits in lei,” said Calina Mihali, Tradeville investment analyst.

Banca Transilvania ranks first in terms of dividend yield estimations. The lender is expected to use a combination of stock-dividends and cash dividends that may bring its investors a yield of 16.3%, based on the share price at the end of January.

Fondul Proprietatea comes next, with an expected dividend yield of 11.3% this year. The fund has preferred to return capital to investors by reducing the nominal value of its shares to avoid the dividend tax. Transgaz ranks third, and could be the state-owned company providing the highest dividend yield, of 10.7%.

Electricity distributor Electrica and electricity transporter Transelectrica are also expected to pay dividends representing more than 10% of their current share price.

State-owned companies are extremely interesting to investors this year because, in late January, the Government approved a memorandum that requires its representatives in the General Shareholders Meetings of these companies to propose and vote in favor of distributing 90% of the 2016 net profits. The Government thus aims to collect more money to the state budget.

Romanian Government asks state-owned companies to pay higher dividends

editor@romania-insider.com