Yesterday, ZABA shares went ex-date. When comparing it to the closing price yesterday, the stock decreased by 14.4%, which is slightly lower than the DY of 16.3%.
This refers to the previously approved dividend of EUR 1.69 per share or a dividend yield of 16.3%. On the market closing price yesterday, the stock declined by 14.4%, which is slightly lower than the dividend yield.
We note that on GSM dividend of EUR 0.74m DPS was approved, implying a 100% payout ratio, while EUR 0.95 per share will be paid from the retained earnings, all together implying the mentioned yield of 16.3%. Further, of the same GSM a share buyback program was approved with a maximum of 120k shares that can be bought on the market. The maximum amount that can be utilized for the share buyback is EUR 1.3m, while the buyback program runs until 31 December 2023.
As a reminder, ZABA reported FY results with an increased net interest income (+8.2% YoY), higher net fee and commission income (+13.9%) and a net profit growth of 24.7%.
In the graph below, we are bringing you a historical overview of the company’s dividend per share and dividend yield. Note that the yields were calculated based on the closing price the day before the initial dividend proposal. The payment date is set for 8 May 2023.
To put things in perspective, since the beginning of the year, ZABA’s share price increased by as much as 21.7%, even after yesterday’s 14.4% price decrease, which is attributed to the ex-date – as without the dividend payment incentive for investors to invest in a stock vanishes.
Dividend per share (EUR) & dividend yield (%) (2012 – 2023)
Source: ZSE, InterCapital Research
