Historical Record in Dividends Distributed to Investors by the TASE Companies

In 2022, a historical record was achieved in dividend distributions by the TASE companies, as 233 companies distributed dividends in a total amount of NIS 28.6 billion to their shareholders. In comparison, 211 companies had distributed dividends in a total amount of NIS 21.2 billion in 2021.

While in 2020 most companies chose to keep their cash close and refrained from dividend distributions, on the backdrop of the coronavirus crisis that had aversely affected their profitability and caused uncertainty as to the future, in 2021, the companies regained profitability, with a corresponding surge in the number of distributors and in the amounts distributed, despite the persistence of the coronavirus crisis. In 2022, the rising profitability of the TASE companies was translated into more distributors and larger dividends.

55% of the dividends (NIS 15.8 billion) was paid to shareholders from among the public and the balance was paid to interested parties (principal shareholders).

Due to the gradual increase in the public's holdings in TASE-listed shares over the years (61.5% at the end of 2022, compared to 44.5% at the end of 2002) most of the dividends are distributed to the public, which benefits greatly from the growth in the profits of the companies.

The average dividend yield of the TASE companies reached 2.8% in 2022, compared to 2.2% and 1.3% in 2021 and 2020, respectively. The dividend yield was mainly affected by the increase in the dividend amount in 2022, and was partly offset by a 5% increase in the average market cap this year compared to 2021.

Almost quarter of the companies whose shares were traded on TASE in the past five years (103 companies) have distributed a dividend in each of the years 2018-2022. More than one third of those companies distributed in at least four of the past five years.

Most notable this year were the two companies owned by Idan Ofer, Kenon Holdings and ICL, which distributed dividends in an aggregate amount of NIS 6.4 billion, as well as the five largest banks, with sizable dividends in an aggregate amount of NIS 5.6 billion.

Table 1: Principal Data on Dividend Distributions 2017-2022

Year	2022	2021	2020	2019	2018	2017
Number of distributors	233	211	154	193	187	200
Percentage of distributors out of total companies on TASE	43%	39%	34%	44%	42%	44%
Total dividend (NIS Billions)	28.6	21.2	10.9	19.4	18.5	26.3
Dividend yield	2.8%	2.2%	1.3%	2.6%	2.6%	3.3%
Average annual market cap of the TASE companies (NIS Billions)	1,028	979	832	753	718	800

Dividend Distributions by Principal Equity Indices

​TA-35 index

Close to 60% of the total dividends (NIS 17.2 billion) distributed by the TASE companies in 2022 was paid by 25 companies whose shares were included in the TA-35 index at the end of 2022. In comparison, close to half of the total dividends distributed in 2021 were distributed by 23 companies whose shares were included in said index at the end of 2021.

The amount distributed by TA-35 index companies and its percentage out of the total dividends are the highest since 2017.

The dividend yield of the index shares in 2022 reached 3.0%, compared to 2.0% in 2021.

The most notable dividend yields among TA-35 companies were achieved by Kenon Holdings (26.1%), ICL (9.1%) and First International Bank (6.7%).

TA-90 index

​About quarter of the total dividends (NIS 7.2 billion) distributed in 2022 were paid by 66 companies included in the TA-90 index at the end of 2022, compared to almost one third of the total dividends (NIS 6.6 billion) distributed by 58 companies in the index in 2021.

The dividend yield of shares included in the TA-90 index reached 2.5%, slightly above the yield in 2021.

The highest dividend yields among TA-90 companies in 2022 were achieved by car importers - Delek Motors (20.8%) and Carasso Motors (12.9%), by Altshuler Shaham Finance (13.6%) that listed in April 2022, and by Oil Refineries (9.3%).

Table 2: Dividend Distributions by Flagship Indices 2021-2022 

Index	TA-35	TA-35	TA-90	TA-90	TA-125	TA-125
Year	2022	2021	2022	2021	2022	2021
Number of distributors	25	23	66	58	91	81
Total dividend (NIS Billions)	17.2	10.8	7.2	6.6	24.4	17.4
Percentage out of total dividends	60%	51%	25%	31%	86%	82%
Dividend yield	3.0%	2.0%	2.5%	2.4%	2.9%	2.2%

ICL achieved record results in the past year, with a steep rise in profits, and distributed quarterly dividends in accordance with the dividend distribution policy that it has adopted, at a rate of up to 50% of the annual net profit. The company distributed dividends in an amount of NIS 3.9 billion and achieved a high dividend yield of 9.1%.Largest distributors (in order of distribution amount):
The top distributors this year are two companies controlled by Idan Ofer: ICL and Kenon Holdings.

Second among the largest distributors is Kenon Holdings, which paid dividends in a total amount of NIS 2.5 billion in 2022. This extraordinary dividend has generated the company a very substantial dividend yield of 26%.

The dividends were financed mainly by the sale of 5% of the shares of ZIM Integrated Shipping in consideration for close to US$ 0.5 billion in March 2022, and from dividends that Kenon receives from ZIM, which in 2022 distributed dividends in a total amount of NIS 3.3 billion.

The next largest distributors are four banks: Leumi, which distributed dividends in an amount of NIS 1.7 billion (3.3% dividend yield); First International, Mizrahi-Tefahot and Poalim, which distributed close to NIS 1 billion and achieved dividend yields of 6.7%, 2.9% and 2.1%, respectively. Discount Bank is the tenth-largest distributor, with a dividend of NIS 617 million.

Delek Motors continued to distribute sizable quarterly dividends out of its profits, similarly to 2021, and distributed NIS 927 million to its shareholders, achieving a dividend yield of 20.8%.

Other substantial dividends were distributed by real estate companies, Azrieli Group (NIS 650 million), Amot (NIS 645 million), and Gav Yam (NIS 570 million), as well as by Phoenix Holdings (NIS 581 million).

Bezeq resumed dividend distributions in 2022 for the first time since May 2018, following the adoption of a new dividend distribution policy in March 2022, pursuant to which it will distribute, every six months, a dividend at a rate of 50% of the semi-annual profit. The company distributed NIS 534 million and achieved a dividend yield of 3.4%.

Dividend Distribution - by Sectors

The highest sectorial dividend yield in 2022 was achieved by the Investment and Holdings sector (6.1%), due to the substantial dividends distributed by Kenon Holdings.

The second-highest dividend yield was achieved by the Industry sector (5.6%), due to the dividends paid by ICL.

A strong dividend yield was also recorded in the Financial Services sector (5.1%), in which two thirds of the companies distributed an aggregate dividend amount of NIS 1.1 billion.

In the Banking sector, dividends in an amount of NIS 5.6 billion were distributed in 2022, similarly to the amount paid in 2021. Despite continuing to distribute substantial dividends this year, the sector's dividend yield dropped to 3.4%, compared to 4.4% in 2021, this as a result of the increase in the average market cap of the banks in 2022 compared to the average market cap in 2021.

​Although the banks' dividend distribution policies provide for the distribution of dividends at a rate of 30%-50% of the net profit, the banks chose to distribute a lower percentage. The total aggregate profit of the five largest banks in the first three quarters of 2022 and in the fourth quarter of 2021 amounted to NIS 21.2 billion, whereas the total dividend paid in 2022 for the four aforesaid quarters was NIS 5.6 billion, representing 26% of the banks' profits.​

Table 3: Dividend Distributions by Sectors in 2021-2022 (NIS, in millions)

Total TA-35	17,242
Number of distributors	25
Company Name	Dividend amount 2022	Dividend yield 2022	Dividend amount 2021	Dividend yield 2021	Dividend amount 2020	Dividend yield 2020
ICL	3,895	9.1%	888	2.9%	401	2.4%
Kenon Holdings	2,466	26.1%	325	5.4%	410	8.7%
Leumi	1,665	3.3%	1,997	4.6%	297	1.1%
First International	945	6.7%	545	4.4%	125	1.7%
Mizrahi-Tefahot	941	2.9%	1,236	4.2%	176	0.9%
Poalim	939	2.1%	1,479	3.8%	0	---
Azrieli Group	650	1.8%	600	2.1%	300	1.2%
Amot	645	5.8%	419	4.7%	499	7.3%
Discount A	617	2.5%	144	0.6%	49	0.4%
Phoenix	581	5.4%	580	7.0%	0	---
Bezeq	534	3.4%	0	---	0	---
Harel Investments	400	4.8%	257	3.8%	0	---
Energean	364	3.8%	0	---	0	---
NewMed Energy	333	3.0%	634	11.3%	216	4.9%
Ashtrom Group	320	3.5%	340	4.8%	160	3.6%
Alony Hetz	298	3.4%	246	3.0%	200	2.9%
Strauss Group	290	2.5%	340	3.2%	180	1.7%
Elbit Systems	287	1.0%	256	1.3%	257	1.2%
Israel Corp	277	2.4%	0	---	0	---
Mivne	269	2.9%	222	2.7%	100	1.7%
Melisron	180	1.4%	0	---	60	0.6%
Energix	105	1.6%	88	1.4%	76	1.2%
Ormat Techno	89	0.6%	87	0.7%	78	0.6%
Electra	82	1.0%	80	1.2%	61	1.1%
Shapir Engineering	70	0.6%	70	0.8%	60	0.7%
Big	0	---	200	2.0%	0	---
Nice	0	---	0	---	0	---
Teva	0	---	0	---	0	---
Tower	0	---	0	---	0	---
Nova	0	---	0	---	0	---
Delek Group	0	---	0	---	0	---
OPC	0	---	0	---	0	---
Shikun & Binui	0	---	0	---	0	---
OPKO Health	0	---	0	---	0	---
Airport City	0	---	0	---	0	---

Table 4: Dividends Paid by TA-35 index Companies* (NIS, in millions)

Total TA-35	17,242
Number of distributors	25
Company Name	Dividend amount 2022	Dividend yield 2022	Dividend amount 2021	Dividend yield 2021	Dividend amount 2020	Dividend yield 2020
ICL	3,895	9.1%	888	2.9%	401	2.4%
Kenon Holdings	2,466	26.1%	325	5.4%	410	8.7%
Leumi	1,665	3.3%	1,997	4.6%	297	1.1%
First International	945	6.7%	545	4.4%	125	1.7%
Mizrahi-Tefahot	941	2.9%	1,236	4.2%	176	0.9%
Poalim	939	2.1%	1,479	3.8%	0	---
Azrieli Group	650	1.8%	600	2.1%	300	1.2%
Amot	645	5.8%	419	4.7%	499	7.3%
Discount A	617	2.5%	144	0.6%	49	0.4%
Phoenix	581	5.4%	580	7.0%	0	---
Bezeq	534	3.4%	0	---	0	---
Harel Investments	400	4.8%	257	3.8%	0	---
Energean	364	3.8%	0	---	0	---
NewMed Energy	333	3.0%	634	11.3%	216	4.9%
Ashtrom Group	320	3.5%	340	4.8%	160	3.6%
Alony Hetz	298	3.4%	246	3.0%	200	2.9%
Strauss Group	290	2.5%	340	3.2%	180	1.7%
Elbit Systems	287	1.0%	256	1.3%	257	1.2%
Israel Corp	277	2.4%	0	---	0	---
Mivne	269	2.9%	222	2.7%	100	1.7%
Melisron	180	1.4%	0	---	60	0.6%
Energix	105	1.6%	88	1.4%	76	1.2%
Ormat Techno	89	0.6%	87	0.7%	78	0.6%
Electra	82	1.0%	80	1.2%	61	1.1%
Shapir Engineering	70	0.6%	70	0.8%	60	0.7%
Big	0	---	200	2.0%	0	---
Nice	0	---	0	---	0	---
Teva	0	---	0	---	0	---
Tower	0	---	0	---	0	---
Nova	0	---	0	---	0	---
Delek Group	0	---	0	---	0	---
OPC	0	---	0	---	0	---
Shikun & Binui	0	---	0	---	0	---
OPKO Health	0	---	0	---	0	---
Airport City	0	---	0	---	0	---

* Based on the composition of the indices as of December 31, 2022.

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 and UMH, non-Israeli-oriented companies that listed their ordinary shares on TASE as part of issuances of bonds or preference shares, the trading in whose ordinary shares is negligible.

The data also do not include dividends in kind distributed by TASE companies.