Stara Planina Hold’s management proposes 6% higher dividend in 2017

Stara Planina Hold

Stara Planina Hold

Industrial company Stara Planina Hold’s (5SR BU) management proposes dividend payouts for subsidiaries within the group from 2016 profits, according to a regulatory filing with the stock exchange. This is 20th consequent dividend payout for shareholders of Stara Planina Hold, M+S Hydravlic, Hydraulic Elements & Systems PLC since 1997 till now.

With Elhim Iskra dividend has been distributed since 2001 every year excluding 2004, which makes it 14 dividend payouts. Bulgarian Rose company has distributed 10 dividends.

Increased dividend for Stara Planina Hold and M+S Hydravlic in 2017

The holding proposes a total of BGN 4 531 164 to be allocated from 2016 profits as gross dividend payments. For M+S Hydravlic the amount is BGN 10 151 232, for Hydraulic Elements & Systems PLC – BGN 3 274 876, for Elhim Iskra – BGN 502 168 and for Bulgarian Rose – BGN 401 324.

This means Stara Planina Hold is expected to pay 6% higher dividend of BGN 0.22 per share, which at current market quotes yields 2.8%. The yield slashed by half on 90%+ share price appreciation since last ex-div price. On the other hand, M+S Hydraulic’s (5MH BU) dividend proposed is 18% y/y higher at BGN 0.26 per share. This yields 3.35% per share at current market quotes.

Hydraulic Elements and Systems (4HE BU), however, is proposed to pay 10% lower DPS at 0.18 per share or 3.46% dividend yield at current market quotes. Lead acid car batteries producer Elhim Iskra (52E BU) expected to slash DPS by 42% y/y to BGN 0.02 per share, only 1.5% DY. Only the smallest company in the Group – Bulgarian Rose (4BH BU) proposed to raise dividend by 50% y/y to BGN 0.08 per share or 3.12% dividend yield at current quotes.

Last year dividend

In 2016 Stara Planina Hold management proposed 90% payout from 2015 profits or BGN 4.3m to be distributed as dividends. This entailed BGN 0.205 dividend per share or twice the previous dividend and a 5.58% dividend yield at the market quotes.

Dividend pay in July

The published Corporate Events Calendar provides for the general meeting of shareholders to be held on 23 May, and the payment of dividends, if it will be decided, to begin two months earlier than usual – from 10 July.

About Stara Planina Hold

Stara Planina Hold was found in 1996 and participated in the mass privatization in Bulgaria. It restructured its portfolio of assets in the next years to focus on machine building, electrical equipment, pharmaceutical and cosmetics and textile sectors. The Holding is active in the management of its subsidiaries and provides financial support for the investment project of the different companies. The policy to redistribute funds for the subsidiaries proved to be the key factor for the development of the Group as it managed to increase several times the revenues without acquisitions of new assets.

Stara Planina Hold dividend policy

Check the latest equity research reports by ELANA Trading