The dividend star of the Prague Stock Exchange is slowly fading. Companies traded on the domestic floor will pay shareholders this year from the pre-crisis year 2008. According to experts and experts, last year’s companies are expected to distribute 44.4 billion crowns, 800 million less than last year and practically 20 billion less than in 2011, which was the most generous towards shareholders in the crisis years.
The only unknown in the domestic dividend secret is CEZ. However, analysts and shareholders expect the amount to remain the same as last year. “I assume that ČEZ will pay a dividend of CZK 40 per share, and the draft state budget for this year is also expected with this amount of others,” says Michal Šnobr, an analyst at J&T Banka and CEZ shareholder.
Bloomberg’s consensus counts on only 35 crowns per event. Even so, the semi-state company with almost 19 billion crowns would once again become by far the largest dividend payer on the domestic stock exchange. The total volume of dividends paid thus fell below 42 billion crowns.
Gloss of Jaroslav Bukovsky:
This year, investors will be most frozen by a zero payout from the loss-making Erste Bank, which distributed 2.5 billion crowns to shareholders last year. One and a half billion less then will also offer O2 shareholders. “The decline in the dividend is due to the deteriorating profitability of both companies,” says Josef Němý from Komerční banka.
Five-year development of the Prague Stock Exchange
Despite the expected decline in payroll, Prague continues to figure in the ranking of the most attractive payroll strongholds of the old continent. With a dividend yield of 5.6 percent, according to Bloomberg, it is almost twice the European average, closest to the Czech Republic is 4.1 percent of the stock market in Norway.
Slovak Telekom will also go to Prague
The domestic investment offer will enrich the shares of Slovak Telekom on May 12. The Slovak government sells a 49 percent stake in the form of an initial public offering (IPO). The event will be traded in Bratislava and London. “Slovenský Telekom is exactly the type of dual letter that makes sense for us and our investors,” said Petr Koblic, director of the Prague Stock Exchange.
According to analysts, the event will be included in the family of dividend titles, but O2 will not replace the future departure, but will offer a lower yield. Analysts warn of the threat of too high prices, the value of the offered share allegedly corresponds to the lower between the price band.
“According to our estimates, the value of the share sold in Slovak Telekom could range from 700 to 750 million euros,” says Tomáš Tomčány from Patria Finance. This would best correspond to a price of € 17.7 per action, which is the lower limit of the IPO price band. However, the subscription price can be up to 23.6 euros, which would value a minority stake at almost a billion euros.
The questions remain
“The considered price range is quite interesting, because with a profit of 50 eurocents per event last year, the P / E share would be even at the lowest price of 35.4, and that’s a lot,” says Petr Hlinomaz from BHS. How much it will increase the new issue, which is majority owned by Deutsche Telecom, activity on the Prague Stock Exchange remains unclear.
“Slovak Telekom should have a weight of six to nine percent in the PX index, and after the division of O2, it should be the fifth most important issue in the Czech stock index. But the question is, what will be its real business activity. For example, VIG shares have a weight in the index of around 20 percent, but trading activity is at the level of smaller issues, “says Josef Němý from Komerční banka.
Investors accustomed to the high dividend yield of O2 stock exchange news are unlikely to save. “The Germans have promised an annual payout of 50 to 80 percent of the profits. In our opinion, this would be below the company’s dividend potential and the yield would be 2.5 percent, “adds Tomčány. O2 shares previously offered more than double. Bratislava’s share represents 42 million shares, of which up to a tenth is intended for small investors from the Czech Republic and Slovakia.