Deals
EON Dividend Hike Seen No Proof of Rebound After Record Loss
- Utility tends to be overly optimistic, Union Investment says
- Sale of grid business is ‘biggest lever’ for valuation
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EON SE’s forecast for higher dividends is no guarantee of good times ahead for Germany’s biggest renewable energy producer.
A bigger payout “doesn’t reflect certainty about a positive development but the hope for it,” said Thomas Deser, a fund manager at Union Investment that holds EON stock. The Essen-based utility has proposed paying 30 euro cents ($0.33) a share for this year, a 43 percent jump on the level proposed for 2016.