At the current share price, dividend yield is 1.5%. Note that the ex-dividend date is 6 May 2019.
Arena Hospitality Group published a call for GSM in which they proposed a dividend payout of HRK 25.6m, which translates into a payout ratio of 29% and a dividend of HRK 5 per share. At the current share price, dividend yield is 1.5% (compared to the share price a day before the dividend proposal). Note that the ex-dividend date is 6 May 2019. The dividend is subject to approval at the GSM which will be held on 30 April 2019.
The company decided to pay dividend in 2019 even though it has announced in its audited report that is planning to commence paying dividends in 2020 based on the 2019 financial results. The 2018 audited report dividend policy announces that the company will continue to retain part of its future earnings for investment purposes and may consider paying out to its shareholders up to 25% of its consolidated normalised net profits for the preceding business year. For the next year we expect that the company will aim not to reduce its dividend payment below the level of this year. Therefore, we believe that for the following years dividend of HRK 5 per share is the minimum threshold.
Also please see our overview of Arena’ s future plans that are available on the link.