Inbox: Verbund is "emerging dividend share"

From the weekly Erste Group Equity: We confirm our recommendation of maintaining because the current price reflects the improvement of market conditions and the rise in electricity prices. We consider current electricity prices as stable, higher oil prices and improved coal sector fundamentals posing a lower price risk for electricity.

After Verbund was able to reduce its debt (2.7x net debt / EBITDA in Q1 2018) and Cash Flow at current electricity prices looks strong, we clbadify the company as an emerging dividend share . The payout ratio for Fiscal 2017 was 48% of adjusted net income, our badumption for 2018 is 50%. We do not expect higher distribution rates in 2018 because a volume of bonds of approx. EUR 680 million are due. For the years following 2019-23, we expect a significantly higher distribution rate of 80% of the Group's adjusted earnings (dividend yield of about 4% compared to 2019).

Agrana
Agrana Beteiligungs-AG is a food group based in Vienna. Agrana produces sugar, starch, fruit preparations and fruit juice concentrates, as well as bioethanol. With approximately 8,600 employees, Agrana operates on 53 production sites spread across all continents and has recently achieved a consolidated turnover of 2.5 billion euros.