Stock-listed firms may be serious alternative to T-bonds as dividends increase

In March 2005 such a move was signaled by 32 enterprises, which plan to transfer a gross of zł.6 billion to shareholders. According to daily Parkiet, the yearly figure may stand at 76 listed-companies transferring zł.9 billion to their shareholders. "Companies paying out substantial dividend might be a serious alternative to T-bonds. Investments in stock bear much higher risk," said Mariusz Adamiak, managing partner in Pioneer Investment Management. A substantial share of all dividends will be paid by partially state owned companies, such as PKO BP, KGHM and PKN Orlen. Another group of companies paying out substantial dividend constitutes investment funds, which also control a large number of stock-listed enterprises. (Parkiet, p. 1) M.M.