Over the past two weeks, two of Romania’s market heavyweights – OMV Petrom and Banca Transilvania – have proposed special dividend distributions, both translating into a 2.3% yield. Also, Sphera Franchise Group proposed an additional dividend from the undistributed profit of 2024, with a 2.9% yield.
On 16 September, OMV Petrom [SNP RO] proposed a gross special dividend of RON 0.0200 per share, marking the Company’s fourth consecutive special dividend. At current prices, this equates to a 2.3% special dividend yield. Combined with the already distributed ordinary dividend of RON 0.044, it adds up to a total dividend yield of 7.4% for the year. The proposed ex-date is 10 November, with payment scheduled for 3 December, subject to shareholder approval at the OGSM on 23 October.
Meanwhile, last Thursday, Banca Transilvania [TLV RO] published its notice for the upcoming OGSM and EGSM on 28 October, which among other things includes the proposal for a RON 700m special dividend distribution. The payout will be sourced from reserves related to prior years’ profits (2015, 2016, and 2019) and translates to RON 0.6420 per share. This also corresponds to a 2.3% special dividend yield. When added to the RON 1.7333 per share already distributed, the bank’s total dividend yield for the year reaches 8.4%.
Also, Sphera Franchise Group [SFG RO] proposed an additional dividend from the undistributed profit of 2024, in the amount of RON 1.04 per share. This translates to a 2.9% yield, and when summed up with the already distributed dividend, the total dividend yield amounts to 6%.
Dividend yields of BET constituents (Current, %)
Source: Companies’ data, InterCapital Research
While the absolute distributions and yields differ, index composition plays a decisive role. Together, Banca Transilvania and OMV Petrom account for nearly 40% of BET’s weighting. Alongside them, Hidroelectrica [H2O RO], offering a 7.3% yield, and Romgaz [SNG RO], with a 1.9% yield, also stand out as double-digit constituents.
As a result, the BET index dividend yield rises to 5.3%, compared to around 4.5% prior to these special dividend announcements. This now places Romania ahead of Slovenia’s SBITOP.
P/E multiples and dividend yields of selected market indices
Source: Bloomberg, InterCapital Research
In addition to strong yields, valuation multiples remain attractive. The BET index trades at lower P/E ratios compared to Croatia and Slovenia, offering a compelling entry point into Romania’s top companies, which are largely anchored in the financial and energy sectors.
However, the discount is not purely opportunity-driven. It also reflects investor caution amid persistent uncertainties. Romania’s political turbulence earlier this year and structural fiscal imbalances, particularly the unsustainable public deficit, continue to cast a shadow over sentiment. Therefore, this factors should also be included in risk assessments and investment decisions.