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Stock Market Tips for May 2025: Dividends and Big Players
Well, folks, Spring is here, and so is the race for dividends! If you're looking to boost your portfolio with a passive income source, here's what you need to know about some of Russia's leading stocks.
Since 2019, the Moscow Exchange Index has closed the last month of spring on a positive note, with only one exception during the 2022 market crisis. This upward trend is primarily driven by investors seeking annual dividends. And this May, six significant companies are closing their registers for dividends. Let's delve into the top picks.
T-Technologies - Liquid but Low Yield:With a very low dividend yield of around 1%, T-Technologies boasts the most liquid stocks on the list. However, keep in mind that trading on the Moscow Exchange follows a "T+1" scheme, so make sure your stock is in the portfolio on the day before the register closes.
Tatneft - Generous Oil Giant:Many analysts recommend buying Tatneft stocks, which are known for their generous dividends and multiple payments per year. May 30 is the last day to buy Tatneft stocks to receive dividends, so don't miss out on this opportunity!
Dividend Gaps and Market Signals:When a company's register closes, its stock price usually drops by an amount equivalent to the dividend payment, known as a "dividend gap." The economic efficiency of buying a stock for dividends depends on the pace of closing this gap. For instance, "Sankt-Peterburg" Bank last traded with dividends of 29.72 rubles per share, but on the next trading day, the stock dropped by 27.75 rubles. This suggests a fairly quick closure of the gap, offering a neutral market signal.
The Big Question: Will VTB and Gazprom Share Their Profits?The anticipation revolves around whether VTB and Gazprom will distribute their profits as dividends. VTB announced plans to distribute half of its 2024 net profit, offering a 26% dividend yield as of May 2025. However, investors are hesitant due to concerns about potential secondary offerings, which could dilute their shares. Gazprom, on the other hand, reported positive financial results for 2024, allowing for a payout of around 22% dividend yield. But, will the shareholders receive anything? The Ministry of Finance has not planned for any Gazprom dividend revenues in the 2025 budget, leaving investors uncertain.
Analysts like Alexei Antonov from Alor Broker and Natalia Malykh from FG "Finam" share their insights regarding these companies. With VTB, the base scenario is dividend payments, but a share issue could offset the dividend positivity due to the dilution of minority shareholders' stakes. As for Gazprom, most analysts believe that it will not distribute its profit, given the high debt load and unstable cash flow. However, Alexei Antonov recommends buying Gazprom shares with caution, as the improved financial results may indicate that the company's main problems have been resolved.
As always, stay informed and make wise investment decisions! Be sure to follow us on our Telegram channel @expert_mag for the latest market news and insights.
- Siluanov, in his recent recommendations, suggests considering the option of diluting finances to reinvest in stocks, particularly in light of the approaching June, a month where several companies offer dividends.
- Among the top picks for investments in May 2025, dividends offered by T-Technologies, despite their low yield, are an attractive option due to their highly liquid stocks.
- If one is looking for generously yielding dividends, investing in Tatneft stocks before May 30 is advisable, as the company offers multiple dividend payments throughout the year.
- In the ongoing speculation regarding VTB and Gazprom's dividend distributions, analysts like Alexei Antonov from Alor Broker and Natalia Malykh from FG "Finam" suggest cautiously considering investment in Gazprom shares, despite the uncertainties regarding dividends and the company's debt load.
