Interfax announced that at an EGM of Uralkali on September 18 shareholders will consider an interim dividend payout for 1H 2008. The BoD suggested a payout at RUB 4 per share. The dividend yield stood at 1.9% at the time the recommendation was issued. The company intends to slate RUB 8.498 billion for dividends; 68% of its 1H net profit of RUB 12.5 billion. The total payout exceeds the limit set under the company's dividend policy, which requires it to set aside at least 15% of its consolidated profit for the purpose. A list of shareholders eligible for dividends is to be compiled on the basis of the shareholder register as of August 13.
For FY 2007, the company paid dividends at RUB 1.9 per share. The total payout amounted to RUB 4.036 billion; 67% of the net profit calculated to RAS
The company, which has always paid high dividends, has proved once again its readiness to share its profits with minority shareholders. We are upbeat about the news and believe it may lend support to the company's shares, which, however, are likely to suffer from adverse market conditions in the short term.
We assign a BUY recommendation to the company's shares (RTS: URKA), with a target price for the shares at USD 18.5, which implies an upside potential of more than 100% to the current stock valuations.
0.569
0.073
