Today you will learn why MTS can pay good dividends in the results of 2021.

Potential dividend yield

Predicted dividends in the next 12 months. - 36 rubles (July 8 - 27 rubles, October 12 - 9 rubles);

In March 2019, the company accepted a new div. Policy in which payments in the amount of 28 rubles per share on the results of 2019-2022

Historical dividend payments

From 2014 to 2018, the company paid dividends in the range from 20 to 30 rubles, in 2019 - 41.9 rubles, in 2020 - 29.5 rubles, in 2021 - 37 rubles.

MTS dividends are quite stable, and the company is interested in such a stability to continue in the future (they will not allow cardinal decline in dividends).

According to data for February 3, 2022, MTS held the 3rd position in the Dividend Aristocrats Foundation with Div. yield 9.35%.

This fund includes companies from the Mosbierzhi Index, which for the last 2 years occupied not lower than the 25th position on the annual dividend yield.

Div. politics

To famous events, in March 2022, the company should have announced a new dividend policy, according to which they will pay more than 2 times a year and at least 28 rubles per share.

And in April 2022, MTS filed an application for refusal to apply the moratorium on the initiation of bankruptcy cases on applications submitted by creditors.

To preserve the right to pay dividends or hold a reverse ransom of shares, companies must refuse the moratorium. That is, MTS is going to pay dividends.

Debt AFK "System"

The largest shareholder of MTS is AFC "System" (ownership share - 49.94%).

The net debt AFC "System" is constantly increasing, for 2021 the debt / EBITDA ratio was 3.05 - this is a critical level.

MTS accounts for 66.5% of the cumulative revenue of the Sistema. Companies need to reduce debt burden. And this can be done, including by dividends MTS.

Segezha helps with the debts of AFK "System"

Money Apparently really needed AFK "System", because the 2nd company for the share of revenue (Segezha) recommended to pay the final dividends for 2021 - 0.64 rubles per share (7.5% per annum).

Segezha had previously paid dividends in the amount of 0.42 rubles per share. In general, in 2021, the company paid 16.6 billion rubles of dividends, which implies KF. Payments more than 100% of net profit under IFRS (15.2 billion rubles) and significantly exceeds the amount of payments, according to the official dividend policy of the company.

Nevertheless, Segezha is a growing company, revenue grows with high rates. And, as a rule, growing companies either do not pay dividends at all, or their yield is extremely low.

Also, it is worth noting that these are record dividends for segge, and all this is against the background that the company may lose 32% of his revenue due to sanctions. In such a situation, the company either cancel dividends, or tolerate them.

It can be concluded, these facts are convinced that the company AFK "System" is very necessary money.

Growth of quotes MTS

Shares of the company since 2013 are traded in a large sidework 200-350 rubles. And on the news on the payment of dividends for 2021, MTS quotes can grow by 20%. Do not forget about the dividends themselves in 18%. As a result, we have a yield of about 40%.

The annual General Meeting of Shareholders of MTS will be held on June 22, 2022 - there will be announced by dividends.

RESULTS

MTS is a protective asset. The company is distinguished by its stable dividends.

Now companies hinder high rates of the Central Bank. MTS has a high debt burden. And thanks to the sanctions, problems may arise with equipment.

Telecom business (is the main MTS) stagnoes, but the company has growth points. Read more told in this article.

That's all, thanks for your attention!

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