Russian Companies with the Highest Dividend Yields in 2025
Investors around the world are increasingly turning their attention to the Russian stock market due to attractive dividend payouts. However, a high yield does not always guarantee a stable cash flow — it is crucial to understand the underlying factors of payout, the associated risks, and how to properly construct a portfolio. This article provides an overview of the leaders in dividend yield, explains key metrics, conducts a sector analysis, examines dividend policies and payment schedules, reviews financial foundations and the risks of dividend cuts, addresses tax and legal nuances, outlines the profile of the dividend investor and access tools, and presents a combination of strategies, forecasts for 2026, and an in-depth analysis of historical volatility, investor psychology, and comparisons with global returns.
TOP Russian Dividend Stocks
1. Gazprom
- Dividend yield: 12.5 %
- Payout ratio: 80 %
- Sector: Energy
- Payment frequency: Annually
Case Study: After announcing record payouts in 2022, the dividend yield was over 15%, attracting a surge of retail and institutional investors.
2. LUKOIL
- Dividend yield: 11.8 %
- Payout ratio: 75 %
- Sector: Oil & Gas
- Payment frequency: Biannually
Case Study: The semi-annual payout system mitigates the impact of oil price fluctuations on yield.
3. Sberbank
- Dividend yield: 9.6 %
- Payout ratio: 50 %
- Sector: Financials
- Payment frequency: Quarterly
Case Study: Stable growth in commission income offsets banking risks and ensures dividend security.
4. NOVATEK
- Dividend yield: 9.2 %
- Payout ratio: 65 %
- Sector: Gas Industry
- Payment frequency: Annually
Case Study: LNG exports under long-term contracts create a predictable cash flow.
5. Rosseti
- Dividend yield: 8.7 %
- Payout ratio: 85 %
- Sector: Electric Power
- Payment frequency: Annually
Case Study: Government subsidies and tariff policies ensure a high profit share for dividends.
Key Metrics: Dividend Yield and Payout Ratio
Dividend Yield
The formula:
\[ \mathrm{DY} = \frac{\mathrm{dividend\ per\ share}}{\mathrm{share\ price}} \times 100\% \]
A high DY attracts attention but may signal risks of stock price decline or reduced payments.
Payout Ratio
The formula:
\[ \mathrm{Payout\ ratio} = \frac{\mathrm{total\ dividends}}{\mathrm{net\ income}} \times 100\% \]
Values above 70–80 % are typical in commodity sectors, but in others, they indicate a risk of payout instability.
Sector Analysis of Returns and Macro Factors
| Sector | Average DY | Average Payout | Main Risks |
|---|---|---|---|
| Energy | 10–12 % | 70–85 % | Oil/Gas Prices, Sanctions, Ruble Fluctuations |
| Finance | 8–10 % | 40–60 % | Credit Risks, Stricter Regulation |
| Telecom | 6–8 % | 50–70 % | High CAPEX, Technological Change |
| Electric Power | 8–9 % | 75–85 % | Infrastructure Costs |
| Consumer Sector | 5–7 % | 30–50 % | Demand, Currency Risk |
Macro factors such as the Central Bank's key rate, inflation, and ruble exchange rate determine real dividend returns for foreign investors as well as companies’ ability to maintain payouts.
Dividend Policy and Payment Frequency
Payment Frequency
- Annually: Gazprom, NOVATEK
- Biannual: LUKOIL
- Quarterly: Sberbank
Ex-dividend date is a crucial date that determines the entitlement to the upcoming payout; usually set 2–3 weeks before the actual payments.
Payout Stability
Companies with established dividend policies typically aim for an annual growth in payouts of 5–7 %, strengthening investor confidence and forming long-term expectations.
Financial Foundation of Payouts and Risks
Net Income and Free Cash Flow
- Gazprom: FCF exceeded 1.2 trillion RUB in 2024, supporting a high payout ratio.
- Sberbank: A diversified business model and moderate loan reserves provide consistent profits.
Historical Volatility of Dividend Stocks
From 2010 to 2025, the average annual volatility of Gazprom and LUKOIL stocks was about 25 %, higher than the broad market level (20 %). However, periods of payout reductions, such as in 2015, showed price recovery within 2–3 years, confirming the long-term appeal of dividend strategies.
Risks of Dividend Cuts
- Declining commodity prices (oil, gas).
- Imposition of new sanctions restricting exports.
- Increased debt burden and rising operating costs.
Risks and Tax Nuances
Main Risks
- Ruble volatility reduces returns in USD/EUR.
- Changes in the public sector may revise payout regulations.
- Concentration in commodity sectors increases systemic risks.
Tax Aspects
- Residents of the Russian Federation: 13 % income tax on dividends.
- Non-residents: 15 % withholding, possible reduction under double taxation agreements (DTA).
- Investment accounts: Exemption from income tax on dividends and a 13 % deduction on contributions up to 1 million RUB/year.
Investor Psychology in Dividend Investing
Emotional Traps
Dividend investors often face the desire to lock in profits during market downturns, leading to the loss of future payouts. Staying focused on dividend flow helps maintain discipline and reduces stress.
Common Mistakes
- Excessive concentration in one company or sector.
- Selling stocks before the ex-dividend date out of fear of price drops.
- Ignoring financial metrics and issuer debt burden.
Investor Profile and Access
Dividend Investor Profile
- Goal — Stable income comparable to coupon bonds.
- Horizon — Minimum of 3 years to maximize compound interest.
- Moderate risk tolerance: willingness to hold fluctuating commodity assets.
Access Tools
- Investment accounts: Tax benefits up to 52,000 RUB/year.
- Online brokers: Tinkoff, Finives, Interactive Brokers.
- Minimum threshold: 1–2 shares (≈5,000–10,000 RUB).
Combination of Strategies and 2026 Forecasts
Core & Satellite Strategy
The core of the portfolio (Core) consists of ETFs on the broad Russian and global markets (60–80 % of capital). Satellites (Satellite) include individual dividend stocks of leaders (20–40 %), combining stability and potential for additional income.
Forecasts
- AI and renewable energy: investment growth of up to 15 % per year.
- Defensive stocks (Gazprom, Rosseti): payout growth of +5–7 % annually.
- Strengthening of the ruble to 70 RUB/USD will increase real returns in the investor's currency.
Practical Recommendations
Six Steps to a Dividend Portfolio
- Determine goals and time horizon.
- Take an online risk profile test.
- Choose a broker with a convenient platform and low fees.
- Open an investment account for tax advantages.
- Build your portfolio based on the Core & Satellite scheme.
- Monitor ex-dividend dates and financial reports of issuers.
Risk Management Tips
- Diversify across sectors to reduce concentration.
- Track payout ratio and free cash flow — key indicators of stability.
- Rebalance your portfolio annually or if changes exceed 10 %.
- Maintain an investment journal for analyzing decisions and emotions.
The Russian dividend market remains attractive due to the high payouts from leaders, but it requires a comprehensive approach: analyzing macro factors, financial metrics, diversification, and considering investor psychology. A balanced portfolio and sound strategy will enable stable passive income and protect capital from external shocks.
