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

Yesterday, Allianz ZB proposed a dividend payment of EUR 1.37 DPS, which amounts to a DY of 3.6% at the current share price.

Allianz ZB proposed a counterproposal to Arena Hospitality Group for a higher dividend of EUR 1.37 per share, instead of EUR 0.7 DPS proposed by the Management Board and the Supervisory Board.

At the current share price, dividend yield is 3.7%, while the ex-date remains unchanged and is set for 4 May 2023, while the payment date is set for 16 May 2023.

Allianz ZB emphasized it had the current financial possibilities of the company in mind in the counterproposal. One of the reasons for this, as described by Allianz ZB, was that the company achieved lower profitability margins compared to its peer group, combined with slower top-line recovery after the pandemic. Consequently, Allianz proposed a higher dividend payment is proposed, for shareholders to achieve a greater return, as no dividend payments were made in some of the previous years. Finally, it is noted that FY 2022 results further indicate the possibility of dividend payment. The reasons for this counterproposal were elaborated even further (you can view the counterproposal below).

Of course, the counterproposal is subject to approval by the GSM, which will be held on 27 April 2023. As a reminder, the last time Arena Hospitality Group paid out a dividend was back in 2019 when it paid EUR 0.66 DPS, which back then gave investors a DY of 1.5%. In 2020 and 2021 there were no dividend payments due to the COVID-19 pandemic, and more specifically, due to the fact that companies that received COVID-19-related government support could not pay out the dividends, the support that Arena received as well.

Arena Hospitality Group also received another counterproposal from the Liberium arbitrium, regarding the remuneration policy in options or shares for management. The full text of the counterproposal is available only in Croatian and to read more about it, click here.