Passive income: GPW offers a steadily growing dividend of 5.9 percent at a low price!

Germany is being left behind by its eastern neighbor

While the German economy, the largest not only within the Eurozone but also in all of Europe, continues to stagnate and shrank by 0.2 percent in the last quarter, its eastern neighbor Poland continues to catch up strongly.

Last year, Poland's economic output grew by 2.9 percent. The World Bank forecasts an increase of 3.4 percent for 2025. This makes Poland one of the most dynamic economies in the Global West.

The sustained high growth is also reflected in the stock market. The Polish benchmark index WIG20 has already gained 31.5 percent this year. In addition to financial stocks such as mBank and Bank Polska , industrial and energy stocks Orlen and PGE were also in demand, and are among this year's top performers.

Both the real economy and the stock market: Poland is booming!

The operator of the Warsaw Stock Exchange is also benefiting from the strong stock market and economic performance. Shares of Giełda Papierów Wartościowych w Warszawie , or GPW for short, have already increased in price by 44.6 percent in 2025 – yet still offer a highly attractive valuation and an above-average dividend yield.

Welcome to a new edition of the wallstreetONLINE Dividend Radar, which returns to Poland after excursions to New Zealand ( Spark ), Denmark ( Scandinavian Tobacco ), and the USA ( Kimberly-Clark , Apple Hospitality ). The last stock featured from our neighboring country was PZU , an Allianz competitor .

Strictly regulated, high-margin business

GPW's business model, like that of Deutsche Börse or the US technology exchange NASDAQ, is to operate a trading venue for stocks, bonds , and other financial products. It earns money partly from transaction fees and partly from information services such as price data. GPW is under government supervision and, like other financial centers, is strictly regulated.

Currently, the number of listed companies is around 400. Nearly 360 additional corporations are listed in the NewConnect segment, which corresponds to the German Open Market. In addition to the Warsaw Stock Exchange, GPW is also the majority shareholder of the Armenian Stock Exchange with a 72.2 percent stake. This gives GPW a foothold in Asia.

GPW impresses with growth and a rock-solid balance sheet

The Polish stock exchange operator's business has performed well in recent years. Revenues climbed from 317.8 million Polish zloty (PLN; €74.1 million) to 444.9 million PLN (€102.4 million) over the past ten years. This corresponds to a compound annual growth rate (CAGR) of 3.44 percent.

Net profit, although volatile, developed successfully overall, increasing from PLN 112.1 million (EUR 26.1 million) to PLN 156.0 million (EUR 35.9 million), corresponding to a CAGR of 3.37 percent. The continued strong earnings performance enabled the company to reduce its debt almost to zero, resulting in net assets of PLN 393.0 million (EUR 90.3 million).

Performance-related dividend policy, above-average return

Another positive effect of the company's sustained profits was positive cash flow, which, in addition to debt reduction, allowed for the payment of a dividend. This developed in line with the company's policy of distributing approximately 60 to 80 percent of profits. While not always increasing, it was overall very satisfactory. The growth rate in recent years has been just under 2.8 percent.

For the current fiscal year, analysts expect a dividend of PLN 3.38 (EUR 0.79) per share. Based on a share price of PLN 57.25 (EUR 13.44), this corresponds to a very attractive dividend yield of 5.9 percent.

By comparison, Deutsche Börse expects a distribution of 1.64 percent, while NASDAQ offers 1.15 percent. Investors receive slightly more at Euronext , which is projected to pay 2.42 percent. Only OTC Markets , which serves a niche market in the US, offers a dividend yield comparable to GPW's, at 4.27 percent.

Share very cheap compared to the industry

The Warsaw Stock Exchange not only offers one of the highest dividend yields in the industry, but also at a price that's extremely advantageous for investors. GPW is valued at 11.4 times its expected earnings for the current fiscal year, and a P/E ratio of 13.6 times is estimated for the coming fiscal year. This is extremely favorable for a company with double-digit growth rates in revenue and earnings.

The company is also attractively valued based on other valuation metrics. The enterprise value to EBITDA (EV/EBITDA) ratio is 10.5 times. The cash flow yield is estimated at approximately 6.9 percent. In Frankfurt, the yield is only 5.2 percent, with an EV/EBITDA ratio of 14.6 times and a P/E ratio of 23.6 times. This makes GPW extremely cheap, even compared to its competitors.

Conclusion: Great compromise between dividends, value, and growth!

Investors seeking exposure to a promising growth market and an above-average dividend at a fair valuation are in the right place with GPW. While there's no linear growth in dividends, a payout is guaranteed as long as the company doesn't change its policies and remains profitable.

Once the Polish stock market gains more international attention, significant price gains are also possible due to catch-up effects in valuation. This makes the stock an all-rounder that combines value and growth.

This is how many shares are needed for 1,000 euros per month

Anyone who wants to achieve a monthly distribution (without taking into account capital gains taxes) of 1,000 euros with the help of GPW will need around 15,190 shares – should the analysts' estimates of a dividend equivalent to 0.79 euros per share for the coming year prove correct.

These were worth PLN 57.25 (€13.15) on Friday afternoon (as of 4:00 p.m. CEST), necessitating an investment of €199,757. This places the stock in the mid-range of previously discussed stocks. For example, Spark required €119,000, while dividend king Kimberly-Clark required €310,800.

GPW dividend overview

Market capitalization: PLN 2.45 billion (EUR 575.0 million)

Dividend increased: 3 years in a row

Dividend not reduced: 3 years in a row

Dividend paid continuously: 15 years in a row

Average dividend increase in 10 years: 2.77 percent pa

Schedule (estimated)

June 27, 2026: Dividend announcement

21.07.2026: Ex-date

21.07.2026: Record Date

05.08.2026: Dividend payment

Sources: MarketScreener, GPW Note: To calculate the past dividend yield, the closing price at the end of the respective year was used, or in the case of forecasts, the current price.

The optimal dividend strategy

An optimal long-term dividend strategy depends on various factors, including individual risk profile, investment objectives, and financial situation. However, here are some general principles that can be recommended:

Diversification : Invest in a wide range of companies and sectors to spread your risk. Diversification can help reduce portfolio risk because not all sectors are affected by market fluctuations at the same time.

Choose quality stocks : Look for companies with a strong balance sheet, stable cash flows, and a history of reliable and growing dividends. Such companies are often better positioned to pay dividends even in challenging economic times.

Reinvesting dividends : Reinvesting dividends can accelerate portfolio growth. Through compound interest, reinvested dividends can make a significant contribution to the portfolio's overall return over time.

Long-term perspective : Dividend strategies often have a long-term focus. Market fluctuations should therefore not lead to hasty decisions. Patience and consistency are keys to success.

Consider tax efficiency : The tax treatment of dividends can vary by country and individual situation. It's important to factor tax effects into your strategy.

Monitoring and adjusting your portfolio : Portfolios should be reviewed regularly and adjusted as needed to ensure they continue to meet your investment objectives and remain well diversified.

Valuation : Pay attention to the stock's valuation. High dividend yields aren't always a good sign; they can also indicate problems within the company.

Use of dividend funds and ETFs : For investors who do not want to directly select individual stocks, dividend funds can be a viable alternative, as they offer a good opportunity for diversification.

Conclusion :

Dividend investing can be a great way to build passive income. By focusing on companies with a stable dividend history, you can gradually build your portfolio. Of course, it's always important to remember that investing in dividend stocks—like all investments—comes with risks.

Other interesting dividend stocks can also be found in the dividend watchlist of our stock market expert Markus Weingran , whose stock market lounge deals daily with current market developments, investment tips and financial topics.

Author: Max Gross, wallstreetONLINE Editorial Team