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Dividends in an amount of NIS 27.2 billion distributed in 2023,
compared to NIS 28.6 billion distributed in record year 2022
===
62% of the dividends were paid to public shareholders (NIS 17 billion)
===
206 companies distributed a dividend this year, compared to 233 companies last year
===
The dividend yield reached 2.9% this year, the highest since 2017
===
88% of the total dividend amount was paid by companies included in flagship index, TA-125
===
Strong sectorial yields were achieved by the Energy, Oil and Gas sector (7.6%),
the Banking sector (5.0%) and the Financial Services sector (4.3%)
==============
In 2023, 206 TASE companies distributed dividends in a total amount of NIS 27.2 billion - compared to the historic record of NIS 28.6 billion distributed by 233 companies in 2022.
Despite several pivotal events in Israel in 2023, which had shaken the capital market and increased economic uncertainty - from the Judicial Reform and the repeated interest rate increases by the Bank of Israel, which significantly raised corporate financing costs, through to the breaking out of the “Swords of Iron” War on October 7, 40% of the companies continued to distribute their profits to the shareholders.
Public holdings in TASE-listed shares have been gradually rising in recent years, up to 63.3% at the end of 2023, with a corresponding increase in the public’s share of the dividend payout.
This year, shareholders from among the public received a record sum of 62% of the total amount distributed (NIS 16.8 billion), compared to 55% of total dividends (NIS 15.8 billion) in 2022, and the balance was paid to the interested parties (Major Shareholders).
The average dividend yield of the TASE companies reached 2.9% in 2023, compared to 2.8% last year. This is the highest yield since 2017, surpassing the record achieved last year, since the average market cap in 2023 is 9% below that of 2022, while the dividend amount is only 5% less than that distributed last year.
One of every five TASE companies (19% of the companies) distributed a dividend in each of the past five years (2019-2023).
More than one of every four companies (27%) distributed a dividend in at least 4 of the past 5 years.
The Banking sector continued to lead this year, with high dividends in an aggregate amount upwards of NIS 8 billion, representing 30% of the total dividend amount distributed by TASE companies. The Energy, Oil and Gas sector also stood out, with an average dividend yield of 7.6%.
Chart 1: Dividend Distribution by Years 2014-2023
Table 1: Principal Data on Dividend Distributions 2018-2023
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
|
Number of distributors |
206 |
233 |
211 |
154 |
193 |
|
Percentage of distributors out of total companies listed on TASE |
39% |
43% |
39% |
34% |
44% |
|
Total dividend (NIS Billions) |
27.2 |
28.6 |
21.2 |
10.9 |
19.4 |
|
Dividend yield |
2.9% |
2.8% |
2.2% |
1.3% |
2.6% |
|
Average annual market cap of TASE companies (NIS Billions) |
933 |
1,028 |
979 |
832 |
753 |
Dividend Distributions by Main Equity Indices
TA-35 index
Close to two-thirds of the companies (23 companies), whose shares were included in the TA-35 index at the end of 2023 distributed dividends in an amount of NIS 16.5 billion, representing 61% of total dividends - similarly to last year, in which 25 companies distributed NIS 17.2 billion.
The dividend yield of the index shares in 2023 reached 3.0%, similarly to last year.
The highest dividend yields were achieved by companies and partnerships in the Energy, Oil and Gas sector: Delek Group (14.1%) and the NewMed Energy LP (8.0%) that it controls, and Energean (8.4%); as well as by Amot (7.4%) and ICL (6.0%).
TA-90 index
Close to two-thirds of the companies (62 companies), whose shares were included in TA-90 index at the end of 2023 distributed NIS 7.6 billion (28% of total dividends), compared to 66 companies in the index that distributed NIS 7.2 billion in 2022.
The dividend yield of shares included in the TA-90 index reached 3.1%, compared to 2.5% in 2022.
Again, the most notable dividend yields among TA-90 companies were achieved by companies in the Energy, Oil and Gas sector - Oil Refineries (23.4%), Naphtha (19.8%) and the Isramco LP (8.8%); as well as by car importers, Carasso Motors (13.9%) and Delek Automotive (11.0%), which in recent years presented double-digit yields; Telsys (10.0%); Kenon Holdings (9.1%) and Altshuler Shaham Finance (8.9%).
Table 2: Dividend Distributions by Flagship Indices 2022-2023
|
# |
TA-35 |
TA-35 |
TA-90 |
TA-90 |
TA-125 |
TA-125 |
|
Year |
2023 |
2022 |
2023 |
2022 |
2023 |
2022 |
|
Number of distributors |
23 |
25 |
62 |
66 |
85 |
91 |
|
Total dividend (NIS Billions) |
16.6 |
17.2 |
7.6 |
7.2 |
24.3 |
24.4 |
|
Percentage out of total dividends |
61% |
60% |
28% |
25% |
88% |
86% |
|
Dividend yield |
3.0% |
3.0% |
3.1% |
2.5% |
3.0% |
2.9% |
Largest distributors (by distribution amount):
- The two major banks - Poalim and Leumi regained their position as top distributors.
In November, following the breakout of the “Swords of Iron” War, the Banking Supervision issued a directive that requires the banks to review their dividend distribution policy on the backdrop of the war and the growing uncertainty concerning its duration and the extent of its impact on the economy, which has affected the distribution amounts in the fourth quarter of the year (hereafter: the Banking Supervision’s Directive).
- Poalim distributed in 2023 the highest dividend in its history, totaling NIS 2.4 billion, which generated a dividend yield of 5.8%. The bank paid to its shareholders 40% of the profits in May and August, in accordance with its dividend distribution policy to distribute up to 40% of the quarterly net profit from operating activities, whereas in December, further to the Banking Supervision’s Directive, it paid only 20% of the profits for the third quarter.
- Leumi paid in 2023 a dividend in an amount of NIS 2.1 billion, the highest since 2007, recording a dividend yield of 4.6%. In the first three quarters, the bank distributed 30% of the quarterly net profit, and in the fourth quarter, following the issue of the Banking Supervision’s Directive, the bank distributed only 20% of the net profit for the third quarter.
- ICL is the third-highest distributor, despite the reduction in its profits due to the drop in potash prices in 2023, having distributed a dividend in each quarter, in a total annual amount of NIS 1.8 billion, reflecting a dividend yield of 6%, after leading dividend distributions last year, with dividends of NIS 3.9 billion, thanks to its record results and a steep rise in its profits in 2022.
- Mizrahi-Tefahot is fourth among the distributors, with a total dividend of NIS 1.4 billion and a dividend yield of 4.3%, and Discount Bank holds the sixth spot on the distributors’ list, with a dividend of NIS 1 billion and a dividend yield of 4.4%. As in the case of Poalim, this is the highest dividend ever distributed by these banks.
- Delek Group resumed dividend distributions in 2023 for the first time since 2019. The company achieved a dividend yield of 14%, having paid quarterly dividends in an aggregate amount of NIS 1.1 billion, financed by the distribution of the profits of its subsidiary, Ithaca, from the North Sea and by the distribution of the profits of the NewMed LP from the Leviathan reservoir, in an amount of NIS 950 million.
- Oil Refineries paid its shareholders dividends of NIS 0.9 billion, mostly out of its substantial profits in 2022 and in accordance with the dividend distribution policy of up to 50% of the annual net profit. The company achieved the highest dividend yield among the companies included in the TA-125 index (23.4%).
Dividend Distribution - by Sectors
- The highest sectorial dividend yield in 2023 was achieved by the Energy, Oil and Gas sector (7.6%), due to the aforementioned substantial dividends distributed by the oil and gas companies and partnerships, most notably Delek Group, NewMed LP and Energean, as well as Oil Refineries.
- The second-highest dividend yield was achieved by the Banking sector (5.0%), due to the high dividends distributed by the five major banks mentioned above. The banks achieved record profits in 2023, among others as a result of the interest-rate increases by the Bank of Israel, the five largest banks’ aggregate profit in the first three quarters of 2023 and in the fourth quarter of 2022 (for which the dividends were distributed in 2023) totaled NIS 26.2 billion, compared to NIS 21.2 billion in the corresponding period. The total dividend amount distributed by the banks in 2023 (NIS 8.2 billion) represents 30% of their profits.
Table 3: Dividend Distributions by Sectors in 2022-2023
(NIS, in millions)
|
|
2023 |
2023 |
2023 |
2023 |
2022 |
2022 |
2022 |
|
Sector |
# of Companies in Sector |
# of Distributors |
Dividend Amount |
Dividend Yield |
# of Distributors |
Dividend Amount |
Dividend Yield |
|
Energy, Oil & Gas |
28 |
11 |
4,886 |
7.6% |
7 |
1,336 |
2.5% |
|
Banking |
7 |
7 |
8,200 |
5.0% |
7 |
5,603 |
3.4% |
|
Financial Services |
31 |
18 |
689 |
4.3% |
21 |
1,071 |
5.1% |
|
Industry |
54 |
27 |
2,670 |
3.6% |
34 |
5,126 |
5.6% |
|
Commerce and Services |
77 |
42 |
2,656 |
3.1% |
49 |
3,690 |
3.5% |
|
Real Estate |
97 |
50 |
4,494 |
2.4% |
55 |
5,321 |
2.4% |
|
Insurance |
9 |
5 |
709 |
2.3% |
4 |
1,091 |
3.3% |
|
Investment and Holdings |
33 |
16 |
959 |
2.1% |
19 |
3,289 |
6.1% |
|
Technology |
150 |
30 |
1,933 |
0.9% |
36 |
2,061 |
0.9% |
|
Biomed |
48 |
0 |
0 |
0% |
1 |
10 |
0.02% |
|
TASE total |
534 |
206 |
27,195 |
2.9% |
233 |
28,597 |
2.8% |
Chart 2: Dividend Distribution by Sectors
Table 4: Dividends Paid by TA-35 Companies*
(NIS, in millions)
|
Company Name |
Dividend Amount 2023 |
Dividend Yield 2023 |
Dividend Amount 2022 |
Dividend Yield 2022 |
Dividend Amount 2021 |
Dividend Yield 2021 |
|
Poalim |
2,431 |
5.8% |
939 |
2.1% |
1,479 |
3.8% |
|
Leumi |
2,081 |
4.6% |
1,665 |
3.3% |
1,997 |
4.6% |
|
ICL |
1,758 |
6.0% |
3,895 |
9.1% |
888 |
2.9% |
|
Mizrahi-Tefahot |
1,390 |
4.3% |
941 |
2.9% |
1,236 |
4.2% |
|
Delek Group |
1,100 |
14.1% |
0 |
--- |
0 |
--- |
|
Discount A |
1,047 |
4.4% |
617 |
2.5% |
144 |
0.6% |
|
NewMed Energy |
947 |
8.0% |
333 |
3.0% |
634 |
11.3% |
|
First International |
798 |
5.5% |
945 |
6.7% |
545 |
4.4% |
|
Energean |
782 |
8.4% |
364 |
3.8% |
0 |
--- |
|
Azrieli Group |
700 |
2.8% |
650 |
1.8% |
600 |
2.1% |
|
Amot |
639 |
7.4% |
645 |
5.8% |
419 |
4.7% |
|
Bezeq |
638 |
4.4% |
534 |
3.4% |
0 |
--- |
|
Melisron |
380 |
3.5% |
180 |
1.4% |
0 |
--- |
|
Elbit Systems |
327 |
1.1% |
287 |
1.0% |
256 |
1.3% |
|
Phoenix |
297 |
3.2% |
581 |
5.4% |
580 |
7.0% |
|
Mivne |
287 |
3.9% |
269 |
2.9% |
222 |
2.7% |
|
Energix |
252 |
4.0% |
105 |
1.6% |
88 |
1.4% |
|
Ashtrom Group |
200 |
3.6% |
320 |
3.5% |
340 |
4.8% |
|
Sapiens |
106 |
2.1% |
128 |
2.9% |
65 |
1.1% |
|
Harel Investments |
100 |
1.5% |
400 |
4.8% |
257 |
3.8% |
|
Ormat Techno |
99 |
0.6% |
89 |
0.6% |
87 |
0.7% |
|
Electra |
86 |
1.5% |
82 |
1.0% |
80 |
1.2% |
|
Shapir Engineering |
70 |
0.7% |
70 |
0.6% |
70 |
0.8% |
|
Strauss Group |
0 |
--- |
290 |
2.5% |
340 |
3.2% |
|
Israel Corp |
0 |
--- |
277 |
2.4% |
0 |
--- |
|
Big |
0 |
--- |
0 |
--- |
200 |
2.0% |
|
Total TA-35 |
16,516 |
3.0% |
|
|
|
|
|
Number of distributors |
23 |
|
|
|
|
|
* Based on the composition of the indices as of December 31, 2023.
Methodology
The data in this review were taken from the reports of the TASE companies on the MAYA website concerning dividends distributed in cash and were calculated based on the actual payment date of the dividends in each of the years.
The overall dividend yield and the sectorial dividend yield are calculated based on the average market cap at the beginning of the year and the end of the year.
The dividend yield of each company is calculated based on the share price as of the ex-date.
The data for each of the years do not include dividends distributed by companies whose shares have been delisted during the year.
The data do not include the foreign companies, Creative Media, Pennantpark, UMH and Cion, which are non-Israeli-oriented companies that listed their ordinary shares on TASE as part of issuances of bonds or preference shares, and the trading in the ordinary shares of those companies is negligible.
The data also do not include dividends in kind distributed by TASE companies.
