Dividends on shares of Rostelecom JSC in 2021 - size and date of closure of the register

All company dividends for the last 10 years

I offer a summary table with data on the payment of dividends by Rostelecom.

Ordinary shares:

Preference shares:

Dividend policy

Until 2021, Rostelecom paid 10% of net profit under RAS on preferred shares. In recent years, ordinary payments have paid the same amount - but before 2012, ordinary holders received an order of magnitude less.

In March 2021, a new dividend policy was adopted. Now 75% of the free cash flow for both types of shares will be used for payment, but not less than 5 rubles. The total volume of dividends is still limited by the company’s net profit according to IFRS - Rostelecom in any case cannot pay more than it earned.

Then, in 2021, the telecom switched to paying interim dividends. Now Rostelecom pays them twice - for 9 months in January and for the whole year - in July.

How to buy shares and receive dividends

To receive dividends as a shareholder of Rostelecom, it was necessary to buy shares before the closure of the register, that is, before July 4. Having concluded an agreement with a broker, you install a program for trading on the exchange and start purchasing. Just remember that you pay a percentage for any transaction to the brokerage firm, and another 13% to the state from your profits.

Best brokers

In order to use your funds wisely and conclude a profitable deal on the Rostelecom Central Bank, you also need to choose the right broker who has a license from the Central Bank and a high rating.

Reliable Russian brokers

Warning about Forex and BO

Expert opinion

Vladimir Silchenko

Private investor, stock market expert and author of the Capitalist blog

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You cannot buy shares of Rostelecom, like any other company, on Forex. Be wary of sites that offer bets on binary options, since for the most part these are online casinos that really don’t like to lose. Here the broker makes a profit, and ordinary participants bear losses. Several European countries are already passing laws banning BW.

Dividends for 2021

At the end of 2021, Rostelecom went through the bare minimum. Thus, 2.5 rubles were already paid as interim dividends on January 12. On July 3, the register of shareholders will close, and the last tranche of dividends will be paid - also 2.5 rubles for each type of security. Thus, a total of 5 rubles per share will be paid.

The dividend yield of the next payment corresponds to:

• 3.05% per ordinary share at its cost of 82 rubles;
• 3.85% per preferred share at its price of 65 rubles.

Not very thick. Even if we calculate the total annual return, it comes out to 6.1% and 7.7%, respectively. Of course, more than the deposit, but you can’t compare it with the most profitable shares of Russian companies.

And here’s another interesting article: Bashneft dividends in 2021: amount, timing, purchase procedure

It’s especially sad to look at such returns compared to previous years, when it was possible to get both 8.17% and 9.22% of profits using preferred shares.

The reason for this is a general decrease in Rostelecom’s profits and a decrease in net subscriber growth. The market is shrinking - it is already oversaturated. There is a lot of competition - including from companies that are not full-fledged providers, but provide Internet connection as part of their product line - for example, Beeline, MTS or Central Telegraph.

When to buy Rostelecom shares for dividends

For the next dividends (total for 2021), the register of Rostelecom shareholders will close on July 4, 2021. Since trading on the Moscow Exchange is carried out in the T+2 mode, when the actual delivery of the asset (in our case, shares) occurs on the second day, you need to purchase a share before July 2.

To receive dividends, you must hold the stock until the close of the trading day.

Payments are credited by the broker after 1-2 months to the same account - or to a separate bank account, depending on the working conditions.

Please note that after payment a phenomenon such as a dividend gap will occur - when quotes fall by the amount of dividends. No one knows when prices will return to the pre-gap level.

Is it worth taking Rostelecom shares?

In general, Rostelecom is not one of the best dividend companies. The payments are not as generous as we would like - besides, in accordance with the dividend policy, only 75% of FCF is paid to shareholders (and we would like 100%). But the minimum guaranteed amount of dividends (5 rubles) is also a plus.

In addition, Rostelecom now pays dividends twice a year - this is more profitable, since shareholders will be able to receive payments more often.

If we evaluate the growth potential of the stock, I don’t really see it. Firstly, according to multiples, the stock is clearly overbought (P/E – 13.16, although P/B – 0.86). Secondly, the debt/EBITDA ratio is growing every year. So, in 2015 its value was equal to 1.78, in 2016 – 1.89, in 2021 and 2021 – 1.94, and at the end of the 1st quarter of 2021 it generally rose to 2.08. Thirdly, the return on equity is quite low - only 6.69%.

On the other hand, revenue is growing, albeit at a slow pace (297 billion in 2021, 305 in 2021 and 320 in 2018), but net profit is hanging around 12-15 million rubles after rapidly falling from 37. 8 million in 2015.

In my opinion, among telecoms there are other, more interesting options - the same MTS, where revenues and profits are growing, and where dividends are higher (albeit due to the demands of the main shareholder), and the international VEON. But in any case, it’s up to you whether to buy Rostelecom shares for dividends in 2021. If you think there is growth potential, take it. Good luck and may the money be with you!

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Not the time for 5G

To implement strategic priorities, the company will move to a segment-cluster development model with a focus on the client and leadership in cost efficiency. Traditional client segments will be complemented by separately designated fast-growing clusters - data centers, cloud services, information security, digital medicine, digital region, government digital services and services. At the same time, the company does not intend to invest in the construction of 5G.

According to Oseevsky, the company did not take into account the costs of building fifth-generation networks in its CAPEX forecast, because this is not included in Rostelecom’s immediate investment policy plan. “As I already said, we do not think that they will appear in the horizon of 3-4 years. These are apparently the tasks of the next strategic cycle,” Oseevsky noted.

Rostelecom's revenue for 2021 amounted to 546.9 billion rubles, OIBDA reached 194.1 billion rubles. (35.5% of revenue), net profit - 25.3 billion rubles.

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How and where to buy Rostelecom shares

Rostelecom shares are traded on the Moscow Exchange, and in lots. One lot contains 10 shares of the company. Accordingly, to buy the minimum package of ordinary shares, you need 820 rubles, and preferred ones - 650. Quite a bit, would you agree?

But there will also be few dividends per lot - 25 rubles for each type of share.

Please keep in mind that when receiving dividends you will need to pay income tax - 13%. Then not the full amount will be transferred to your hands, but only 2.175 rubles per share, or 21.75 rubles per lot.

The broker acts as a tax agent; you do not need to pay anything. Dividends will come to the account already “cleared” of tax.

You can purchase Rostelecom shares through any broker with access to the Moscow Exchange. And these are almost all Russian brokers