The best Czech shares worth watching

Shares are one of the best, and at the same time one of the riskiest, investments. They are mainly intended for more experienced investors who are willing to take on a reasonable amount of risk in order to make a profit. In this article, we will look at Czech dividend shares and how you can buy them.

The advantage of Czech shares is that there are not many of them, and they generally represent stable and successful companies. The risk of loss is therefore much lower than with American technology startups, where volatility, and the risk that comes with it, is high.

On which exchanges can you buy Czech shares?

In the Czech Republic, you can trade on two stock exchanges:

• RM-SYSTÉM, the Czech securities exchange (RM-S) – established back in 1993, it is used for trading shares of both Czech and foreign companies. It is aimed mainly at small and medium-sized investors. It is owned by Fio banka.
• Prague Stock Exchange (Burza cenných papírů Praha, BCPP) – the most important exchange in the Czech Republic. It is based in the Stock Exchange Palace in the centre of Prague. The BCPP runs the primary share market in the country and operates under the Capital Market Undertakings Act and its own exchange rules.

In general, as a small investor you can buy Czech shares through most large brokers, such as XTB.

Shares

Shares are securities issued by joint-stock companies. A shareholder is the owner of securities who has contributed a certain ownership stake (capital) to the company. A shareholder is entitled to a share of the profit (dividends), which secures them an annual passive income. At the same time, they take part in running the company by being entitled to vote at the general meeting (for example, electing the board of directors).

Although share prices constantly fluctuate, their value is expected to rise over the long term. This results in a subsequent profit on sale (the difference between the purchase price and the selling price). To reduce risk, it is recommended that you diversify (spread) your investment across different shares. An investor has the right to sell their shares on the stock exchange at any time through a broker. Investing in shares is one of the first steps towards building financial literacy. Its main criterion is, after all, buying more assets than liabilities.

How do you buy shares?

The process for buying Czech shares is fairly simple. However, before deciding to buy shares, you should weigh up all the possible risks and gather as much information as you can about the whole process. You could also talk to someone who already has experience buying shares.

Choosing a broker

A share broker is a company through which you can buy and sell shares. A good broker should be chosen from among proven, licensed companies with a sufficient track record on the capital market. The aspects to focus on when choosing are brokerage fees, the way trading works, the number of branches and the reliability of the online application. Established brokers include, for example, XTB, eToro and Degiro.

For example, with the broker XTB, it is an advantage if you have an account held in CZK, since you naturally do not pay for conversion into another currency. On the other hand, at XTB the dividends on Czech shares used to be taxed very heavily at 35%, which changed at the start of 2022. This is one of the reasons why more investors and traders are now moving to this platform, since dividends are taxed less and investing in Czech dividend shares is therefore more worthwhile. That was probably the biggest disadvantage that could put investors off Czech share titles.

On the other hand, a disadvantage of XTB is that you cannot invest in all Czech titles there. You will search in vain, for example, for the popular Pilulka or Avast.

Opening a trading account

Now it is time to open a trading account, which can also be done online. This process is fairly quick and takes at most 15 minutes. First you create your login details, then you fill in your personal details and verify your identity. Finally, you transfer money from your current account to your trading account, and you can start investing.

Choosing a company

Choosing the company whose shares you want to buy is crucial. Do you want to invest in Czech or foreign shares? How much do you want to invest? Does the company you have chosen pay dividends? How often do you want to trade?

Before buying shares, it is important to find out at least a few things about the company:

• The company’s revenue and profit,
• the dividend yield,
• the difference between the share price and earnings per share,
• return on investment,
• an analysis of the company’s annual reports.

Buying shares

Nowadays, shares are usually bought online. All orders are placed through your broker’s trading platform. Buying shares itself is fairly simple. You just choose the exchange where you want to buy the shares, enter the quantity you want, and place a buy order.

You can also buy using a so-called limit order. The principle behind this type of transaction is that you enter into the platform the price at which you want to sell or buy the shares. As soon as the share reaches the desired value, the purchase (or sale) of the share happens automatically.

How many shares should you buy?

When you decide to buy shares, you have to reckon with possible risk. So if you are a beginner in the world of securities investing, do not get carried away with the idea of buying as many shares as possible so you can make quick money. As a beginner investor, you should buy a small number of shares. This will bring you lower risk. It will also help you understand how this world works. It is also sensible not to always bet on just one company. Successful investors spread their capital across securities of different companies and sectors (energy, healthcare, finance, and so on)

Czech dividend shares

In the following lines, we introduce Czech dividend shares that are favourites in the world of securities.

ČEZ shares

ČEZ (České energetické závody, Czech Energy Works) is the largest electricity distributor and producer in the country. On the domestic market, it is one of the biggest employers and ranks among the most successful Czech companies in terms of revenue and profit. Its shares can be bought both on the BCPP and through RM Systém.

Whether the company will pay a dividend is decided at the annual general meeting, which also sets its amount. What matters for the dividend payout is the so-called record date. This means that the right to the dividend belongs to whoever owns the shares on the record date.

The majority owner of ČEZ is the Ministry of Finance of the Czech Republic, which owns 70% of the company’s shares. The company pays a dividend every year, and it is definitely one of the more attractive ones. The forecast of constantly rising electricity prices and a monopoly on energy distribution in the Czech Republic make ČEZ shares a very promising investment. In addition, in the future we can expect more and more products to need electricity. ČEZ may also benefit from the fact that, at the end of 2021, several alternative electricity suppliers went bankrupt, and in distribution ČEZ has no competition at all.

This is an interesting, conservative investment with the promise of solid returns as well as a regular dividend. ČEZ is definitely one of the best Czech shares, and it is by far the most closely watched title in the Czech Republic.

ČEZ shares keep rising, and on top of that they offer a great dividend yield.

Philip Morris ČR shares

Although global interest in cigarettes is declining, Philip Morris ČR shares rank among the best securities investments in the country. Philip Morris ČR, which is based in Kutná Hora, is one of the largest manufacturers and sellers of tobacco products in the country. It has an excellent capital structure and zero debt.

This tobacco giant’s vision is to completely phase out the production of classic cigarettes. The green light will go to the production of so-called smoke-free products, such as electronic cigarettes (IQOS).

The dividend amount reaches more than 1,000 CZK (about 46 USD) per share. The share price itself, however, runs into the thousands.

O2 ČR shares

O2 ČR also offers interesting Czech dividend shares, with a dividend of around 7% of the share price. The brand was founded back in 1994 under the name Eurotel and now provides integrated telecommunications services for households, businesses and corporations in both the Czech Republic and Slovakia. The company’s credibility rests on its long presence on the market and its stability.

MONETA Money Bank shares

Moneta’s share prices run into the tens of crowns, which might look like not a very profitable investment. It is worth noting, however, that the dividend per share reaches 10% of the price. Moneta stands on very solid foundations, and its banking services are used not only by individuals but also by small and medium-sized enterprises, large corporations and public sector institutions. As its range of services grows and its branch network keeps expanding, MONETA Money Bank keeps growing in popularity.

Kofola shares

Kofola ČeskoSlovensko makes non-alcoholic beverages. Its subsidiary is the Kofola group, which operates not only in the Czech Republic and Slovakia but also in six other countries in south-eastern and central Europe. The company also makes Jupí syrup, Vinea soft drinks and Rajec bottled water.

The value of this brand’s shares is very changeable, because it depends on customer supply and demand. If there are a lot of buyers for the shares, their price rises. Otherwise, the price falls.

Assessment of Czech shares

If you are looking for a stable harbour for your money with a view to beating inflation, the best Czech share titles can be the right choice. Unlike American technology companies, they are less volatile and pay a decent dividend. You certainly cannot expect any extreme share price growth, but combining share price growth with a decent dividend, ČEZ, O2 and others can protect your money from inflation, and may even add a percentage point or two on top. So if you want to save better, or rather manage your money well, then definitely do not leave your money sitting only in savings accounts.

USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.