♦ “There are regional banks that pay dividends with yields of 6% and more, speaking in euros, that also do share buybacks in the true sense of the word to be canceled”.
The shareholder remuneration decisions, taken in recent weeks by the companies listed on the Bucharest Stock Exchange, translate into dividends with yields below those of previous years and a lower attractiveness compared to the markets in the region or the developed stock exchanges in the West, says Alexandru Combei, investment director of BRD Asset Management.
“For the most part, the shareholders’ decisions were in line with what we expected. There were perhaps a few exceptions, where they were rather disappointed, in the sense that dividend proposals were voted in the lower part. Overall, the level of dividends paid this year by BVB companies is not very interesting”, considers Alexandru Combei. The representative of BRD AM – one of the largest managers of mutual funds in Romania, with assets under management of 4.5 billion lei – was present at the Thursday, May 2nd edition of ZF Deschiderea de Bătoje. The show can be watched from Monday to Friday, from 09:30, on zf.ro and ZF’s YouTube and Facebook pages. The podcast is broadcast on Spotify.
“They are important companies, in the top 5-7 in terms of liquidity or capitalization, that offer dividends with a yield below 5%. If you compare, for example, the dividends from the BSE with the dividends paid by similar companies in the region or even in the developed markets of the West, the level is no longer attractive.”
In the west of the continent, there are oil and gas companies that distribute dividends with yields of around 6%, and if we compare the dividends in euros and pounds with those in lei, at least 2% must be added at the moment to make up the difference of interest, continues Alexandru Combei.
“Similarly, in the banking sector, our dividends are below 5%, towards 4%. At the same time, there are regional banks that pay dividends with yields of 6% and more, speaking in euros, that also do share buybacks in the true sense of the word to be canceled, so another form of returning cash to shareholders” , adds the BRD representative.
BVB Arena is the program of the Bucharest Stock Exchange created to discover and promote successful Romanian entrepreneurial companies. The project, dedicated to Romanian entrepreneurs, was launched in 2017 and in its 6 editions gathered over 1,200 companies nominated in the program and 20 semi-finalist and finalist companies that used the tools provided by BVB. The total value of the 37 rounds of share financing and bond issues at the BVB carried out by the 20 companies exceeded the amount of 236 million euros.
The finalist companies in the Program have the opportunity to interact with other successful Romanian companies and to benefit from the mentoring program that provides them with useful information about the development of the business strategy and access to the necessary capital to take their company to the next level. Finally, they will be part of the BVB Arena and get the recognition they deserve.
Register your company on www.bvbarena.ro or recommend a local business you trust. BVB Arena. We train the Romanian capital.
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