How much in dividends do Hungarian companies pay?
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Significant growth at Expedia
We really can’t complain about Expedia’s first-quarter results; the company beat consensus estimates by a wide margin and delivered strong growth year-over-year across all key metrics. However, due to the war in Iran, travel sentiment appears to be deteriorating, which could already be reflected in second-quarter booking data, and as a result, the company has forecast more modest growth, which has given investors a bit of a scare (hence the drop in the stock price following the report). In the short term, this headwind may persist, but due to strong performance, a significant share buyback program, and the stock’s low valuation, we are maintaining it on our Equity Top Pick List.
Investors in South Korea were thoroughly spooked
By the end of April, the South Korean stock market had fully recovered from the decline caused by the escalating conflict in Iran, and the index subsequently hit a series of new highs. However, the Kospi’s rise temporarily stalled after a local politician suggested that South Korea could return the additional tax revenue generated by the artificial intelligence industry to the public in the form of dividends. The suggestion was quickly clarified to state that there was no question of a windfall tax on corporate profits. The Kospi then surged to a new high, approaching the 8,000-point level. Although the index has been setting new highs in recent times, trading volume has also been gradually declining, which may indicate a weakening trend. Valuations are not stretched, but among the potential risks, in addition to the effects of the war in Iran, concentration risk is also worth mentioning, as Samsung and chipmaker SK Hynix have played a prominent role in the index’s rising market capitalization recently.
In our latest dividend calendar, we examined the potential dividend payouts of companies in the BUX and CETOP indices.
BUX
In our dividend calendar, we have listed the stocks of the BUX index alongside the CETOP index, along with the expected dividend yields for these stocks. For BUX components, we have taken into account the planned dividend payout rates included in the companies’ general meeting proposals; however, it is important to note that the final dividend approved by the general meetings may differ from these figures.
The Board of Directors of Graphisoft Park has proposed the payment of an ordinary dividend of €0.84 based on last year’s earnings from continuing operations and a special dividend of €0.99 based on one-time revenues, for a total of €1.83. This represents a dividend yield of 11.6%, which is the highest among the dividend yield expectations for BUX companies.
At the same time, the Board of Directors recommends that the General Meeting consider that the company pay dividends only from the profits of its core and regular operations (which, based on the current share price, would result in a dividend yield of 5.3%). This is because, in the case of a maturing loan, the company could achieve significant, long-term financial savings by paying it off in full. Conversely, if the maturing loan were to be refinanced, it could result in an additional interest burden of up to 500,000 euros per year for Graphisoft Park starting in 2027.
Zwack will hold its annual general meeting in July; at this time, there is no information regarding a potential dividend.
CETOP
For the CETOP index dividend expectations, we used the average of the analyst consensus in the Bloomberg database; however, it is worth noting that the final dividend approved by the companies’ general meetings may differ from this figure. The database includes previously announced or expected dates regarding the dividend payment schedule and the timing of the general meeting; in some cases, no date has been announced yet or only an indicative date is available. For Hungarian stocks included in the CETOP index (similar to the BUX index), we have taken into account the planned dividend payment amounts included in the companies’ proposals to the general meetings.
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