CEZ’s board of directors announced that it will propose a gross dividend of CZK 4.5 per share out of 2002 profit, which implies a gross dividend yield of 4.1% and a net dividend yield of 3.5% (in line with major European utilities average). A company AGM is scheduled for June 17; the record date is June 11.
The proposal is in line with our expectations of a CZK 4-5 per-share gross dividend. The proposed dividend and prospects of a dividend stream at a minimum CZK 4.5 per share in the next couple of years could help lift the stock toward our target price of CZK 120 per share in the coming weeks (we accumulate CEZ stock).
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