Page 57 - bne_December 2017_20171204

bne December 2017 New Europe in Numbers I 57
Russia's highest dividend paying stocks for the next 12 months
bne IntelliNews
Russia’s summer dividend payout season is over so it's time for investors to look forward to the next one. High yielding dividend stocks have been consistent index-outperformers nearly every year since 2014 and so the list of generous companies is the first list investors look at when making equity investments in the Russian stock market.
Russia’s stock market had a stellar year in 2016, returning over 50% to portfolio investors, but market has done less well this year selling off by about 15%
in the first quarter before making back some of its losses. The ruble-denomi- nated Moscow Interbank Currency Ex- change (MICEX) is down YTD by 7% as of mid-November, while its sister index, the dollar-denominated Russia Trading System (RTS), is down by 3% since the start of the year.
Despite the lackadaisical performance of the indices Russia still returns some of the highest dividends in the world. The MSCI Russia index was trading with an average dividend yield of 5% as of the start of November – more than double the mere 2.3% for the broader MSCI EM index.
Steel stocks are being particularly generous at the moment as they return windfall profits from high commodity prices to shareholders. Looking through the list of companies expected to pay more than 5% dividend yields over the next 12 months and another category that jumps out are utilities. Enel Rus- sia is expected to pay Russia’s highest dividends over the next 12 months and other names are also being generous as their capex programmes end and they sending more of their profits to shareholders.
Russian 12 month dividend expectations >5%
Enel Russia 1.3 11.2%
Rostelecom pref. 53 9.7%
NLMK 134 9.5%
MTS 288 9.0%
Stock
Price, RUB/s
12MF DY
Severstal
911
10.9%
Norilsk Nickel (DR)
1,126
9.6%
AFK Sistema*
13.1
9.1%*
Federal Grid Co.
0.16
8.7%
Aeroflot
Rostelecom
Unipro
Megafon
Globaltrans
Moscow Exchange
Etalon Group
Tatneft
* High uncertainty. Source: Bloomberg, BCS
165 <8.0%
68 7.6%
2.57 7.4%
589 6.9%
547 6.7%
118 6.5%
235 5.7%
444 5.5%
Tatneft pref.
319
7.7%
RusHydro
0.81
7.4%
Gazprom
127
6.9%
LUKOIL
3,145
6.7%
MMK
44
6.6%
LSR Group
817
6.1%
Rusagro
694
5.6%
Alrosa
78
5.2%
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