Research Notes

Dividend yield: Important factor in unstable market conditions

02.10.08

Developing markets, including Russia’s, traditionally have high P/E coefficients and a large portion of profits slated for re-investment, which actually leads low dividend yields. Investors on such a market count mainly on rapid business growth at a company and a fast rise in its stock valuations rather than on stable dividend payouts. However, the massive sell-offs of the past two months, which have sent the P/E 2008 multiple of the MSCI Russia index down to a level of 5, have made shares of some companies attractive in terms of dividend income.

* Short overviews of equity research reports and sector reports are posted on the website http://www.finamrus.com with a 1-day delay after their full versions are emailed to the company’s clients. To get overviews on the day of their release, please contact your manager at Finam to sign up for full versions of research reports.

All Research Notes >>