ELANA Agrocredit’s shareholders to vote BGN 0.058 DPS (5% yield)

ELANA Agrocredit

ELANA Agrocredit

Agricultural land leasing company ELANA Agrocredit’s (0EA BU) shareholders will vote BGN 0.058 gross DPS for FY2018 on 28th May, according to published invitation for general shareholders’ meeting (GSM) by the Company.

ELANA Agrocredit has proposed to distribute 90% of its FY2018 net profit or BGN 2.13m, entailing BGN 0.0582 DPS.

The latter is 7.4% higher than our forecast. The dividend yield at current quotes reaches 5.02%. The remaining 10% or BGN 236.7k of the net profit will be transferred to reserves

Dividend history

ELANA Agrocredit’s structure mirrors REIT, ensuring a guaranteed annual dividend return, distributing 90% of annual profits.

The Company is in top 3 in terms of dividend yield, delivering 7.7% dividend yield in 2017, and 4.7% on average for the past 5 years. After having almost doubled its capital and the proposal for shareholders to vote BGN 0.058 dividend per share, the Company has also projections for 2019 and 2020 pointing to BGN 0.069 and BGN 0.088 DPS, which at current quotes yields 6% to 7%.

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