Greece and CEE Set to Sustain Strong Dividend Yields

Greece and the broader Central and Eastern European (CEE) region are expected to maintain robust dividend yields into 2026, according to the latest analysis from the European investment bank WOOD & Company on Eastern Europe and the Middle East. This outlook holds despite the strong re-rating seen across markets in 2025.

WOOD identifies 15 high-yield stocks with solid fundamentals and liquidity across the region. In Greece, Aegean, OTE, and Bank of Cyprus stand out among its top picks, with Aegean taking the lead. The firm also points to compelling dividend stories at Motor Oil, HELLENiQ Energy, and Trade Estates.

Valuations across EMEA surged in 2025, driving a notable jump in price-to-earnings ratios. Poland’s P/E climbed from 7.3x to 11.9x, Greece’s from 6.2x to 9.8x, Romania’s from 8.9x to 12.3x, Hungary’s from 6.3x to 7.6x, and the Czech Republic’s from 14.4x to 18.0x. These increases mirror the strong performance of regional stock markets, many of which delivered returns between 20% and 40%.

Although dividend yields have compressed by 150–250 basis points in Poland, Romania, Greece, and Hungary, WOOD notes they remain well above Eurozone and developed-market benchmarks—preserving the region’s income advantage.

Greece, in particular, continues to appeal to investors. WOOD cites the country’s combination of mid-range valuations and resilient dividend capacity, supported heavily by its banking sector.

The Greek economy is projected to grow by 2.1% in 2025 and 2.2% in 2026, driven by strong investment flows and steady consumption. Inflation is expected to ease to around 2.4% by 2027, while unemployment continues to decline. Fiscal conditions also remain favorable, with primary surpluses and a falling debt-to-GDP ratio.

Source: tovima.com