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What do you say to the much too high payout ratio?
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@suscimer I see great potential for enormous share price increases. I think the dividend will be held rigidly, as enormous profit increases are expected soon due to the transformation with Suez. From 2025 onwards, profits are already higher than the dividends forecast. Revenues were increased by almost 50% to > €30 billion in the current year, but much of the increase was due to the Suez acquisition, with organic growth of > 13%. EBIT climbed by 19.4% to €2.22 billion. As can be seen from Veolia's announcements, it is making good progress in integrating Suez and has already saved €264 million in costs as a result of the merger, with an annual target of €350 million. Veolia Environment's mission is to conserve resources and provide environmentally friendly solutions to the challenges of the modern world. The company works closely with communities, businesses and governments to minimize the environmental impact of their activities and promote sustainable development. While ESG is not really my favorite topic, I know that banks and governments etc. can't avoid it. Veolia is already a good ESG choice due to the topic and the company has ESG written all over it.
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@7Trader So your investment case is: decreasing costs and an increase in profit with the same dividend?
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@suscimer I personally don't care about the dividends at all. I thought you wanted me to tell you why the payout ratio is so high. That was my opinion on it.
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@7Trader Are you holding Veolia by buy and hold or just as a trade?
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@suscimer There is no pure Buy&Hold for me. Some companies in my portfolio I have partially or completely sold and then bought again with better prices. So I will also handle it here. So yes, I can imagine to hold the position "forever", but I already know that I will always make active changes. And under certain points of view I also sell again.
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