CEZ decided to proposed dividend of CZK
20/share. The proposed dividend needs to be approved at AGM, 23 April 2007.
Our view: The proposed dividend is 4.8% or CZK
1 lower then our expectation of CZK
21/share. Proposed dividend implies pay-out ratio of 41.5% and 2.0% dividend yield. We see this news in-line with market expectations of CZK
19.5 and don't expect significant trading impact as the stock already trades ex-dividend. We reiterate our Buy recommendation.