Something is wrong here: Bilfinger is underestimated

In 2021, the industrial service provider had from the sale of the facility management company Apleona received an additional payment of around 450 million euros. Debts have been reduced, part of which now flows into a lavish dividend. votes at the general meeting May 11th to, investors will receive a dividend of 4.75 euros. In addition to the basic dividend of one euro, there is the Apleona-Bonus of 3.75 euros. And there is a trading opportunity here. With a dividend yield of more than 13 percent it can be assumed that the price should be very well supported at the lower end until the payout date and can still gain a lot if the dividend hunters go on the hunt.

Even more could be possible in the medium term. When a stock is trading with an exceptionally high yield, investor classification is clear. They assume that normal food will follow afterwards: dividend deduction gone, that’s it. This is perhaps a somewhat hasty assessment. Because there is still a previously hidden dividend. Bilfinger will have another one at the Annual General Meeting share buyback in the amount of 100 million euros to get approved. These funds also come from the second tranche of the Apleona sale. Based on the current price, this buyback corresponds to a share of seven percent of the market value. Together with the normal dividend, the company will be paying back almost ten percent of its own value to the shareholders by mid-2023. In addition to the capital repayment, there are other arguments for a revaluation of the company. Bilfinger is lean, has no debts and should with its Focus on the energy industry be able to benefit from the incipient cutting-off of Russian raw materials.

Our columnist Jrg Lang has been dealing with the topic of equities since 1988.

Image sources: Bilfinger SE