Tserazov Konstantin Vladimirovich: “Spring is the time to earn on dividends”

What dividends will bring the shares of domestic companies, and which issuers to bet on — says Konstantin Tserazov, Deputy Head of Global Markets at Troika Dialog.

The beginning of 2012 brought optimism to the markets – in the first quarter, the MSCI World index, which monitors the dynamics of world markets, soared by almost 10%, and the Russian market showed an increase of 14.6% in the RTS index due to the strengthening of the ruble. The MICEX ruble index looked more modest, but also did not get lost against the general background, having added 6.3% in three months, notes Konstantin Vladimirovich Tserazov. These figures indicate a high interest in emerging stock markets from foreign investors.

Konstantin Vladimirovich Tserazov: “Investors have the opportunity to earn not only on exchange rate differences, but also on dividends”

Against the backdrop of the economic crisis, which the financial authorities of the Old and New Worlds are now trying to overcome by softening their monetary policy, investments in developed markets look less profitable due to low rates. Therefore, the growth of our market is primarily due to signs of stabilization in the global economy — investors, realizing that the risks have decreased, refuse to invest in “quality” and direct cash flows to emerging markets, including Russian sites, explains Konstantin Tserazov. The assets of Russian companies, «sagging» amid the problems of the global economy, look fantastically cheap, hence the increased attention of investors, the expert says.

In April, the closing season of company registers starts — that is, investors have the opportunity to earn not only on exchange rate differences, but also on dividends — that part of the profit that the company pays to owners of ordinary and preferred shares. Since the beginning of spring, companies have been closing registers, fixing the composition of shareholders on a specific date in order to pay them annual dividends. Thus, spring is the time to earn on dividends. This is a “hot season” for those who intend to receive a stable income from securities, explains Konstantin Tserazov. To get on the lists of shareholders owning shares, and thereby qualify for dividends, it is enough to buy paper at least a day before the closing of the register.

But the closer the closing date of the register, the more expensive the shares will cost, recalls Konstantin Tserazov, so now is the right time to buy them. How will Russian companies please their shareholders, how much will they pay, and which issuers should be chosen to receive maximum dividends?