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The analysis was conducted by the Exchange’s research department. The dividend yield of 3.6%, up from 3.4% in 2005 puts the TASE ahead of major world exchanges, including Tokyo (1.1%), London (3.1%), Paris (3.2%), Italy (3.3%) and Toronto (2.4 %). Total dividends paid by companies traded on the TASE reached the US$ 5 billion mark, compared to US$ 3.7 billion in 2005.
In 2006, thirty-two companies paid dividends amounting to US$ 25 million or more, and since most of the large companies distribute dividends, their market value is as high as 76% of the overall value (of the companies). The dividends distributed by the companies listed on the TA-25 index made up 72% of all dividends paid in 2006, in comparison to 60% in 2005. Bank Leumi headed the list for dividend distribution after announcing end-of-year dividends in the amount of US$ 625 million upon completing the sale of its provident funds and mutual funds.
I.D.B. Development Corporation paid dividends five times this year for a total sum of US$ 475 million, demonstrating an especially high dividend yield of 25%.
In light of the interest shown by investors in companies that regularly pay dividends, in 2006 the TASE launched the Tel-Div-20 index, comprising 20 companies listed on the TA-100 index with exceptionally high dividend yield. Since its inauguration, the Tel-Div-20 index has risen by 39% – approximately one per cent more than the TA-100 index; four index certificates have also been introduced.
| Table 1. Main Key Facts about Dividend Distribution 2004-2006 | |||||
| Year | No. of Companies Paying Dividends | Weight of Distributing Companies | Amount of Dividend | Dividend yield | Average market value of companies (billions US$) |
| 2006 | 222 | 76% | 4,937 | 3.6% | 139 |
| 2005 | 210 | 79% | 3.652 | 3.4% | 110 |
| 2004 | 178 | 70% | 2,980 | 3.6% | 82 |
| * US$ 1= | |||||
