PREFS

Sberbank has announced 2013 dividends at RUB 3.2 for both ords and prefs, with CEO German Gref seeming to suggest that the bank will continue to make dividends equal for both share classes.

Both commons and prefs of Rosneft product subsidiaries trade on the RTS Board.

Until September 7, B&W ran a free shareselling service for people who wanted to cash in their prefs.

According to media, Rostelecom (RTKM RX, RTKMP RX) BoD will set buyback prices for minorities, who vote against merger with Svyazinvest, at R136.05 ($4.4) per common share and R95.24 ($3.1) per pref, set by Ernst & Young.

If UFOS pays out 100% of 2012 net income as dividends, both common and pref shareholders would receive R28 ($0.9) per share (if prefs are paid as commons), which offers 26% yield per common and outstanding 47% per pref, respectively.

VimpelCom: If VimpelCom spends all of the proceeds from the conversion of Altimo's prefs into ordinary shares on an extraordinary dividend (a payment was proposed in its FY12 report), the distribution could reach $0.79 per share.

Our target price for Rostelecom prefs would be $4.8 per share in case of conversion, which is almost two times higher than our current valuation of Rostelecom prefs ($2.5 per share, estimated by DDM).

Under company dividend policy, the dividend per pref is set at 10% of net profit according to RAS, divided by the total number of shares, which comprise 25% of Rostelecom share capital, which gives actual payout of 3% for preferred stock.

We revalued Rostelecom prefs using DDM with a 7% discount rateand the new payout ratio.

NBAMR is usually a generous dividend payer, but the company distributed only R301m ($10m) or 28% of net income in 1H 2011, paying R98 ($3.5) per ordinary share and R159 ($5.5) per pref. Payment of 10% of net income as pref dividends is in accordance with the charter, but the same payout rate in 2H will give only R35 ($1.2), if financials meet our forecast.

Payout ratio is supposed at about 23%, implying 20% allocated to dividends on common shares and only 3% on preferred shares (for the latter 10% of net income will be allocated to 25% of share capital, while number of prefs actually corresponds to some 7% of share capital).

However, we believe that Rostelecom's prefs offer an attractive investment opportunity, as in addition to offering a healthy long-term dividend