As global equities bled red last week, driven by recession fears ignited post-Liberation Day and heightened geopolitical tension, the mood on the capital markets soured. With uncertainty clouding the global economic outlook, this week’s blog shifts toward something a bit more certain – dividend proposals from Romanian listed companies.
In the past weeks, constituents of Romania’s BET index have begun unveiling their proposed 2024 profit distributions. So far, 15 out of 20 index members have revealed their dividend plans. Do keep in mind: these are proposals pending approval at upcoming General Shareholder Meetings.
Proposed dividend per share of BET constituents (RON)
Source: Companies’ data, InterCapital Research
The largest BET constituent by index weight, Banca Transilvania [TLV RO] proposed a gross dividend of RON 1.73 per share, implying a 6% dividend yield and a total payout of RON 1.59bn, this corresponds to a 33.6% payout ratio. It’s worth noting that banks operate under strict regulatory frameworks, especially around Capital Adequacy Ratios (CAR). Banca Transilvania intends to maintain a CAR comfortably above 14% post-dividend, in line with its internal policy that links payout levels to expected ROE and regulatory buffers. The ex-date is June 13th, with payment on June 30th.
OMV Petrom’s [SNP RO] 2030 Strategy emphasizes a progressive dividend tied to financial performance and long-term resilience. It targets 5-10% annual DPS growth and a payout ratio of 40-70% of operating cash flow (OCF) – averaging around 50%. For 2024, the company proposed a total dividend of RON 2.77bn, reflecting a 66% payout ratio, and 42.8% of OCF. This equates to RON 0.04 DPS and a 6.1% yield. The ex-date is set for May 12th, while the payment date is June 3rd. OMV Petrom also announced intention to propose a special dividend in 2025.
Hidroelectrica [H2O RO] takes the crown in absolute terms: a whopping RON 4bn in proposed dividends, translating to a 98.7% payout ratio and RON 8.99 per share, with a 7.4% yield. The company’s dividend policy mandates a minimum 90% payout, provided this doesn’t impair funding for future investments – especially important given the state’s 80% ownership via the Ministry of Energy.
Romgaz [SNG RO] proposed RON 0.16 DPS, translating to a 2.6% dividend yield. The total dividend amounts to RON 604m, of which RON 584m stems from 2024 profits and RON 20m from retained earnings. The ex-date is July 3rd, while the payment date is July 25th.
Like in Banca Transilvania’s case, BRD’s [BRD RO] dividend policy is shaped by capital requirements, such as CET1. Therefore, BRD proposed a RON 737m dividend payout, equal to 50% payout ratio, RON 1.06 DPS and a 5.8% yield. The ex-date is May 12th, payment date May 22nd.
Back to energy sector companies which are abundant among the BET constituents. Transgaz [TGN RO] adheres to a minimum 50% payout policy. For 2024, the company proposed a RON 203.5m dividend payment, which implies a 52% payout, RON 1.08 DPS and a 3.8% yield. The ex-date is set for June 24th and payment date for July 16th.
Moving on, Nuclearelectrica [SNN RO]proposed a RON 2.7 DPS, equaling a 6.7% yield. Total dividend amounts to RON 815.2m, or a 40% payout ratio, with ex-date being June 2nd and payment date June 24th.
Electrica’s [EL RO] proposed RON 0.18 DPS marks a 50% YoY increase, with a 1.4% yield. The payout reflects 16.5% of consolidated profit and 91% of individual net distributable profit. The ex-date is set for June 3rd, payment date for June 27th.
Transelectrica [TEL RO] announced RON 2.12 per share, implying a 4.8% yield. The total of RON 155.4m corresponds to a 50% payout from distributable profit, with the rest allocated to reserves. The ex-date is June 5th, payment date June 26th.
As for Fondul Proprietatea [FP RO], the company proposed RON 0.04 DPS, yielding 11.5%. the total distribution is RON 144m, with a 42.4% payout ratio, while the ex-date is May 27th and payment date is set for June 19th.
One United Properties [ONE RO] proposed a second dividend tranche of RON 0.36 per share, yielding 1.9%. Combined with the first tranche, the total RON 0.7 DPS yields 3.5%, with RON 77.8 allocated, translating to a 20.4% payout ratio. The company adheres to an “up to 35%” policy on net distributable profit. Notably, in December 2024, a 50:1 share consolidation occurred, raising nominal value per share from RON 0.2 to RON 10. The ex-date for the second tranche is set for May 20th, while the payment date is May 29th.
Aquila [AQ RO] proposed RON 0.05 DPS, yielding 3.6%, with a total payout of RON 50.8m – a 61.1% payout ratio. The ex-date is May 20th, payment date June 6th.
Antibiotice [ATB RO] proposed RON 0.02 DPS, yielding 0.9%, with a RON 13.8m dividend equating to a 13.5% payout ratio. Payment is set for October 8th, with the approval expected on April 15th, while the ex-date is to be determined.
Sphera Franchise Group [SFG RO] proposed RON 1.09 DPS, implying a 2.6% yield. This corresponds to RON 42.2m distribution and a 43.4% payout ratio. The ex-date is set for May 15th, payment date for June 6th.
Lastly, Transport Trade Services [TTS RO] proposed RON 0.16 DPS, implying a 3.8% yield and a 45% payout ratio, in line with the company’s dividend policy. The ex-date is May 23rd, payment date June 16th.
In the coming weeks, dividend proposals are expected from Digi Communications, Premier Energy and Purcari Wineris. Conversely, MedLife and TeraPlast are unlikely to announce distributions – MedLife does not have a dividend payout practice, while TeraPlast posted a negative net income for 2024.
Implied dividend yield of BET constituents (%)
Source: Companies’ data, InterCapital Research
As it stands, the BET index yield is 5.5%, and with a P/E of 8.3x, valuations remain compelling, especially compared to other CEE markets, making Romania an attractive equity market. Moreover, a pending bull factor is the probable reclassification from Frontier to Emerging (MSCI), which could soon shine a spotlight on Bucharest, attracting a broader base of global capital.