One interesting angle on $EVO is the dividend-growth story that is quickly emerging.
Mgmt. has a policy that ~50% of consolidated net profit be returned as an annual dividend.
Mgmt. has a policy that ~50% of consolidated net profit be returned as an annual dividend.
$EVO is now yielding .67%, which doesn't sound to appealing as a dividend play.
However, most dividend paying companies aren't near-monopolies growing 53% YoY with significant operating leverage and a variable dividend policy tied directly to net profit growth
However, most dividend paying companies aren't near-monopolies growing 53% YoY with significant operating leverage and a variable dividend policy tied directly to net profit growth
Net profit grew 90% in 2020 (the dividend grew "only" 62% because of dilution mainly from the NetEnt acquisition)
There likely isn't another NetEnt-sized acquisition this year, and as $EVO grows, the dilutive effects of small M&A will decrease substantially
There likely isn't another NetEnt-sized acquisition this year, and as $EVO grows, the dilutive effects of small M&A will decrease substantially
By the end of FY 2022, the dividend should be set at ~1.5 EUR/share or $1.82 USD, which using today's price = a 1.5% yield. By the end of FY 2024, the yield will almost certainly be > 2%.
All of the above is based on consensus numbers which $EVO has a history of beating.
All of the above is based on consensus numbers which $EVO has a history of beating.
The stability provided by the dividend policy is a huge benefit in these calculations.
Dilution could hurt the yield in the short-term, but in ~5 years $EVO could have the rare combination of being a very high-growth, high-yield holding for current shareholders.
Dilution could hurt the yield in the short-term, but in ~5 years $EVO could have the rare combination of being a very high-growth, high-yield holding for current shareholders.
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