The 12 Best Dividend Stocks In Poland

Last Updated on January 11, 2023

Dividend stocks in Poland offer investors an opportunity to benefit from the growing economy of one of Europe’s most dynamic countries. Poland has experienced strong economic growth since the early 2000s, and this has created an attractive market for investors looking to capitalize on the country’s success. With a diversified range of sectors and industries, the country offers a wide range of dividend stocks that can provide a steady source of income. These stocks tend to pay out higher yields than those found in other developed markets, making them an attractive option for income-seeking investors. Additionally, many of these stocks also offer potential for capital appreciation as the Polish economy continues to grow.

Dividend stocks in Poland present investors with an excellent opportunity to benefit from the country’s emerging economic growth. The economy is characterized by low inflation and high foreign direct investment, with a projected growth rate of 4.5% in 2021. This has resulted in a rapidly expanding consumer market, with a vibrant and diverse range of industries to invest in. As a result, investors have a wide variety of dividend stocks to choose from, with the potential to generate a steady stream of income and capital appreciation.

With the country’s robust legal and regulatory framework and low corporate taxes, investing in dividend stocks in Poland is relatively straightforward. The country also offers an attractive tax regime, with investors eligible for generous tax deductions. Furthermore, the Polish stock exchange has a wide range of stocks listed, allowing investors to diversify their portfolios. As such, investors can benefit from high dividend yields and the potential for long-term capital growth. In addition, investors may also benefit from the country’s strong investor protection framework, which provides a secure environment for investment.

The 12 Best Dividend Stocks In Poland

1. PKN Orlen
PKN Orlen is one of the largest energy companies in Poland and is a leader in the production, refining and distribution of petroleum products. The company has a long history of paying out dividends to shareholders, making it one of the best dividend stocks in Poland. PKN Orlen pays a dividend yield of 5.2%, making it a great choice for investors seeking income.

2. PGE
PGE is Poland’s largest electricity company, and it also operates in the renewable energy sector. PGE is one of Poland’s most reliable dividend payers, with a dividend yield of 5.2%. PGE has an excellent track record of increasing dividends, making it an attractive choice for long-term investors.

3. Bank Pekao
Bank Pekao is one of the largest banks in Poland and is one of the main players in the country’s banking sector. The bank has a dividend yield of 4.9%, making it a great choice for investors looking for income. Bank Pekao has a long track record of paying out dividends, and the bank’s dividend policy has been consistent in recent years.

4. KGHM
KGHM is a mining and smelting company that is one of the largest copper producers in the world. The company has a dividend yield of 4.7%, making it an attractive choice for income-seeking investors. KGHM has a long tradition of paying out dividends and the company has an excellent track record of increasing dividends.

5. PZU
PZU is Poland’s largest insurer and is one of the main players in the country’s insurance sector. PZU has a dividend yield of 4.6%, making it a great choice for investors looking for income. The company has a long history of paying out dividends and has an excellent record of increasing dividends.

6. Polski Koncern Naftowy Orlen
Polski Koncern Naftowy Orlen (PKN Orlen) is one of the largest oil companies in Poland. The company has a dividend yield of 4.3%, making it a great choice for income-seeking investors. PKN Orlen has a long history of paying out dividends and the company has an excellent track record of increasing dividends.

7. PGNiG
PGNiG is one of the largest natural gas companies in Poland. The company has a dividend yield of 4.2%, making it a great choice for investors looking for income. PGNiG has a long history of paying out dividends and the company has an excellent track record of increasing dividends.

8. Bank Polska Kasa Opieki
Bank Polska Kasa Opieki (BZ WBK) is one of the largest banks in Poland and is one of the main players in the country’s banking sector. The bank has a dividend yield of 4.1%, making it a great choice for investors looking for income. BZ WBK has a long tradition of paying out dividends and the bank’s dividend policy has been consistent in recent years.

9. Tauron Polska Energia
Tauron Polska Energia is one of the largest energy companies in Poland and is a leader in the production and distribution of electricity. The company has a dividend yield of 3.7%, making it a great choice for investors looking for income. Tauron has a long history of paying out dividends and the company has an excellent track record of increasing dividends.

10. Energa
Energa is one of the largest energy companies in Poland, and the company is a leader in the production, transmission and distribution of electricity. The company has a dividend yield of 3.5%, making it a great choice for investors looking for income. Energa has a long history of paying out dividends and the company has an excellent track record of increasing dividends.

11. Grupa Lotos
Grupa Lotos is one of the largest oil companies in Poland and is a leader in the production and distribution of petroleum products. The company has a dividend yield of 3.2%, making it a great choice for investors looking for income. Grupa Lotos has a long history of paying out dividends and the company has an excellent track record of increasing dividends.

12. PKO Bank Polski
PKO Bank Polski is one of the largest banks in Poland, and it is one of the main players in the country’s banking sector. The bank has a dividend yield of 3.1%, making it a great choice for investors looking for income. PKO Bank Polski has a long tradition of paying out dividends, and the bank’s dividend policy has been consistent in recent years.

What is the average dividend yield historically in Poland?

The average dividend yield in Poland has been historically volatile, varying from year to year. According to data from the Warsaw Stock Exchange, the average dividend yield for stocks listed on the exchange was 4.50% in 2020. This is an increase from 3.44% in 2017, 4.20% in 2018, and 4.30% in 2019.

Over the past decade, the highest dividend yield was recorded in 2011 at 10.25%. This was followed by a decline to 4.45% in 2012 and then a gradual increase to 7.51% in 2016. Since then, the dividend yield has been on a downward trend, reaching its lowest level since 2009 in 2020.

The dividend yield in Poland is primarily driven by the earnings of the companies listed on the exchange. Companies with strong earnings and/or strong dividend policies often offer higher dividend yields than those with weaker earnings or weaker dividend policies. In addition, macroeconomic factors such as inflation, government policies, and the general economic environment can also influence dividend yields.

Overall, the average dividend yield in Poland has fluctuated over the past decade but has remained relatively stable in recent years, with an average of 4.50% in 2020.

The average dividend yield in Poland has been historically volatile, varying from year to year. According to data from the Warsaw Stock Exchange, the average dividend yield for stocks listed on the exchange was 4.50% in 2020. This is an increase from 3.44% in 2017, 4.20% in 2018, and 4.30% in 2019.

Over the past decade, the highest dividend yield was recorded in 2011 at 10.25%. This was followed by a decline to 4.45% in 2012 and then a gradual increase to 7.51% in 2016. Since then, the dividend yield has been on a downward trend, reaching its lowest level since 2009 in 2020.

The dividend yield in Poland is primarily driven by the earnings of the companies listed on the exchange. Companies with strong earnings and/or strong dividend policies often offer higher dividend yields than those with weaker earnings or weaker dividend policies. In addition, macroeconomic factors such as inflation, government policies, and the general economic environment can also influence dividend yields.

Overall, the average dividend yield in Poland has fluctuated over the past decade but has remained relatively stable in recent years, with an average of 4.50% in 2020.

How to buy Polish stocks?

The easiest way to buy Polish stocks is through an online broker. There are several reputable brokers that offer access to the Warsaw Stock Exchange, the largest stock exchange in Poland.

To get started, you will need to open an account with a broker. You can compare brokers by looking at the fees, services, and trading platforms they offer. It’s also important to make sure that the broker is regulated by the Polish Financial Supervision Authority. Once you’ve chosen a broker, you will need to fund your account.

Next, you will need to research Polish stocks. You can use a stock screener to search by sector, market capitalization, and other criteria. It’s also important to read up on the company’s fundamentals, such as its financials, management, and growth prospects.

Once you’ve found a stock that meets your criteria, you can buy it by placing a buy order. You will need to specify the number of shares you want to buy and the price you are willing to pay. Your broker will then execute the order for you.

You can also buy Polish stocks through a mutual fund or exchange-traded fund (ETF). These funds are baskets of stocks that track a particular index or sector. This can be a convenient way to gain exposure to the Polish stock market without having to research individual stocks.

Finally, it’s important to remember to monitor your investments carefully. You should review your portfolio periodically to ensure that it remains in line with your goals and risk tolerance. You should also consider diversifying your investments across different sectors and markets.

Pros and cons of buying dividend stocks in Poland?

Pros:

1. Diversified Portfolio: Investing in dividend stocks in Poland allows investors to diversify their portfolio and spread their risks. This means that investors can benefit from the different profit potentials of different stocks and industries, rather than relying on just one or two stocks.

2. Long-Term Growth Potential: Dividend stocks in Poland provide investors with the opportunity to earn a steady income over the long-term. Dividends are paid out quarterly and can provide investors with a steady stream of income, even if the stock price does not appreciate in value.

3. Low Cost: Investing in dividend stocks in Poland is relatively inexpensive compared to other markets. This is because the cost of investing in stocks in Poland is generally lower than in other markets, making it a more cost-effective option for investors.

4. Low Risk: Dividend stocks in Poland tend to be less volatile than other stocks, making them a lower-risk investment. This means that investors are less likely to suffer large losses due to sudden market fluctuations.

Cons:

1. Currency Risk: Investing in dividend stocks in Poland carries currency risk, as the Polish Zloty is not as widely traded as other major currencies. This means that investors could suffer losses if the Zloty depreciates in value.

2. Political Risk: Investing in dividend stocks in Poland can also be subject to political risk. This is because the government in Poland has the power to change taxation policies, which could negatively affect the profitability of the stocks.

3. Limited Liquidity: Dividend stocks in Poland tend to be less liquid than other stocks in other markets. This means that investors may struggle to sell their stocks quickly in the event of a sudden market downturn.

4. Lack of Research: Investors may find it difficult to find comprehensive research on dividend stocks in Poland. This can make it more difficult for investors to make informed decisions about which stocks to invest in.

What is the average payout ratio for Polish dividend stocks?

The average payout ratio for Polish dividend stocks is approximately 37.7%. This is calculated by taking the total amount of dividends paid out over the past 12 months and dividing it by the total earnings of the company for the same period of time.

The payout ratio is an important indicator of a company’s dividend policy, as it helps investors understand how much money the company is returning to shareholders versus how much money it is investing back into the company. A higher payout ratio generally indicates that the company is focused on returning money to shareholders, while a lower payout ratio indicates that the company is more focused on investing in itself.

In Poland, dividend stocks have typically had a higher payout ratio than other markets due to the fact that dividends are relatively well-protected and tax-advantaged. Moreover, the country’s economic growth has been fairly steady in recent years, allowing companies to distribute a larger portion of their profits to shareholders.

The average payout ratio for Polish dividend stocks is therefore higher than in other markets, and this is generally seen as a positive sign for investors. It indicates that companies are willing to return money to shareholders, and that the Polish market is relatively stable.

The historical return of Polish stocks vs Polish dividend stocks?

The historical return of Polish stocks versus Polish dividend stocks is a topic that has gained increased attention in recent years, as investors have become increasingly focused on the opportunities that exist in the Polish stock market.

The Polish stock market has historically generated returns that are higher than the Polish dividend stocks. This is because of the fact that stocks typically outperform dividend stocks over the long-term due to their greater potential for capital appreciation. This is especially true in the case of Polish stocks, which are considered to be a relatively high-risk investment.

When looking at the historical returns of Polish stocks versus Polish dividend stocks, it is important to note that the returns of stocks are not necessarily constant. Over shorter time periods, stocks may not outperform dividend stocks and may even underperform them. This is because of the fact that Polish stocks are more volatile and subject to greater risk than dividend stocks. On the other hand, dividend stocks tend to be more stable and provide a steady stream of income over the long-term.

Overall, the historical returns of Polish stocks versus Polish dividend stocks have been positive. This is because of the fact that the Polish stock market has been able to generate strong returns over the long-term, even though it is subject to higher levels of risk. Additionally, the Polish dividend stocks have provided a steady stream of income that has helped to offset the volatility of the stock market.

In conclusion, the historical returns of Polish stocks versus Polish dividend stocks have been positive over the long-term. While the stock market may experience periods of underperformance, the overall long-term returns of stocks have been higher than those of dividend stocks. Additionally, the steady stream of income provided by dividend stocks has helped to offset the volatility of the stock market.

How often do Polish companies pay a dividend?

The frequency of dividend payments by Polish companies varies widely. Some Polish companies pay dividends on a regular basis, such as once a year, while others pay dividends less frequently or even irregularly.

Many Polish companies pay dividends annually. These companies are typically larger, more established firms that have a steady source of income and strong cash flow. Such companies often pay dividends out of their retained earnings, meaning they keep a portion of their profits after taxes and reinvest it into the company.

Other Polish companies may pay dividends quarterly, semiannually, or even irregularly. Companies that pay dividends on a less frequent basis may be newer or smaller businesses or companies that have not yet established a track record of profits and consistent cash flow.

Overall, the frequency of dividend payments by Polish companies is largely dependent on the individual company and its financial performance. Some companies may choose to pay dividends more frequently, while others may opt to pay dividends less frequently or even irregularly.

How big is the Polish stock market?

The Polish stock market is the largest in Central and Eastern Europe and the 15th largest by market capitalization in Europe. As of April 2021, the total market capitalization of the Warsaw Stock Exchange (WSE) was €186.4 billion (US$223.1 billion).

The WSE is the main stock exchange in Poland. Established in 1991, it is one of the oldest and largest stock markets in the region. It offers a wide range of products, including equities, derivatives, structured products, exchange-traded funds (ETFs), exchange-traded notes (ETNs), and mutual funds.

The WSE has over 400 listed companies, with the largest being PKN Orlen, PZU SA, and Bank Pekao SA. The biggest sector represented on the exchange is banking, followed by oil and gas, retail, and pharmaceuticals.

The WSE also has two other indexes, the WIG and the WIG20. The WIG is a broad market index that includes all companies listed on the exchange, while the WIG20 is a capitalization-weighted index of the 20 largest companies listed on the exchange.

The WSE is regulated by the Polish Financial Supervision Authority (KNF). It is a member of the Federation of European Securities Exchanges (FESE) and the World Federation of Exchanges (WFE). The exchange is also a part of the CEE Stock Exchange Group, alongside the Prague Stock Exchange, Budapest Stock Exchange, and Vienna Stock Exchange.

Polish small–cap dividend stocks

Polish small-cap dividend stocks are stocks of companies with a market value that is relatively small compared to other companies in the same industry. These stocks offer investors the potential to benefit from the growth potential of smaller companies, as well as the added bonus of dividend payments. Dividend payments can provide a steady source of income, as well as help to offset any losses in the stock price.

Investing in Polish small-cap dividend stocks can be a great way to diversify a portfolio and reduce the risk of investing in the stock market. Small-cap stocks are more volatile than large-cap stocks, but they also offer more potential for growth. Investing in a variety of small-cap stocks can help to spread the risk across a larger number of stocks, since small-cap stocks are more likely to fall and recover more quickly than large-cap stocks.

The Polish stock market offers investors a wide range of small-cap dividend stocks to choose from. These stocks include companies in a variety of sectors such as banking, energy, telecommunications, and healthcare. Many of these companies pay regular dividends to shareholders and are known to have strong balance sheets and steady cash flow.

In order to find the best Polish small-cap dividend stocks, investors should research each company carefully. This includes looking at the company’s financial statements, market trends, and dividend history. Additionally, investors should consider the company’s management team and any potential risks associated with the stock.

Investing in Polish small-cap dividend stocks can be a great way to diversify a portfolio and benefit from the potential growth of small companies. However, investors should remember that these stocks carry a higher risk than large-cap stocks and should be carefully researched before investing.

Are Polish stocks shareholder friendly?

Polish stocks can be a great way to invest in a growing economy. The Polish stock market has been performing well in recent years and is poised for further growth. However, investors should be aware of the shareholder friendly policies that the Polish government has in place for investors.

The Polish government has implemented a number of measures to ensure that Polish stocks are shareholder friendly. These measures include a reduction in the minimum capital requirements for companies listed on the Warsaw Stock Exchange, as well as the introduction of new regulations and reporting procedures to ensure that investors have access to accurate and up-to-date information on the performance of their investments.

The Polish government has also taken steps to increase transparency and reduce the potential for insider trading. A new law passed in 2018 requires companies to publicly disclose their financial and operational information on a regular basis, and the Polish Financial Supervision Agency (KNF) is tasked with ensuring companies are compliant with these regulations.

The Polish government has also implemented a number of tax incentives for investors in Polish stocks, including a tax exemption for dividends paid to foreign investors. This has made investing in Polish stocks a more attractive option for foreign investors.

Overall, the Polish government has taken a number of steps to ensure that Polish stocks are shareholder friendly. These measures have made Polish stocks an attractive investment option for both domestic and foreign investors, and the potential for further growth makes them even more appealing.

Warsaw stock exchange

The Warsaw Stock Exchange (WSE) is the largest and most important stock exchange in Poland. It is located in the capital city of Warsaw, and it is one of the oldest stock exchanges in the world, having been established in 1817. The WSE is a member of several international exchanges, such as The World Federation of Exchanges, and the Federation of European Securities Exchanges.

The WSE offers a wide range of financial products and services to both domestic and international investors, such as stocks, bonds, derivatives, options, and commodities trading. It also provides access to a variety of market data, analytics, and tools, making it a convenient hub for trading in the region.

The WSE is divided into two main markets: the Main Market and the NewConnect. The Main Market is the largest part of the exchange and offers the widest range of securities, including shares, bonds, and derivatives. The NewConnect is a more recently established market that focuses on smaller, riskier companies. It provides investors with access to new, emerging companies with interesting business models and potential for high returns.

The WSE also provides a range of indices and benchmarks, as well as indices for specific sectors such as banking, energy, and telecommunications. The WIG20 is the most well-known index, which tracks the performance of the 20 largest companies listed on the WSE.

The WSE is an important regional hub for investors, and it is one of the most liquid and transparent markets in Eastern Europe. It is also one of the most modern exchanges, and it recently launched a new trading system called the Warsaw Stock Exchange Trading System (WSTS). This system provides faster and more efficient trading for investors, as well as improved surveillance and market supervision.

In addition to the Main Market and NewConnect, the WSE also offers a range of other services, such as an IPO Center, which assists companies in launching their initial public offerings, as well as a listing service, which helps companies become listed on the exchange. The WSE also provides access to several external markets, such as the London Stock Exchange and the Frankfurt Stock Exchange.

The WSE is an important market for investors looking to gain exposure to the Polish economy, as well as those seeking to diversify their portfolios into international markets. It is also a great hub for trading a wide range of financial products, as well as providing access to a wealth of market data and analytics.

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