Analysts expect high dividend yield on Bucharest exchange in 2019

Analysts expect high dividend yield on Bucharest exchange in 2019
By bne IntelliNews September 24, 2018

The average dividend yield to be paid next year by the companies in Romania’s blue chip BET index, out of 2018 profit, may be 8.83% if the state continues to demand the companies in its portfolio pay 90% of their profits as dividends, local brokerage company Tradeville said in a comment emailed to bne IntelliNews

If the dividend payout ratio for BET companies where the state is a majority shareholder is lowered to 50%, the average dividend yield is estimated at 7.67%, close to the one distributed in 2017 (7.6%) according to Tradeville's analysts, who used the closing prices of the trading session on August 21, 2018 to calculate the dividend yield.

For companies where the state does not have a majority shareholding, about 75% of the blue chip index, Tradeville assumed that the same profit distribution rate of 2018 (for 2017 profits) will be maintained in 2019 (for 2018 profits).

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