Hungary Mol to pay huge dividend
More than HUF 220 billion
At its meeting on 1 April 2025, Mol's Board of Directors proposed, among other things, that
Mol should pay a total dividend of HUF 220,422,915,075,
with the basic dividend per share being HUF 165, up HUF 15 (+10%) on last year's level, and an additional extraordinary dividend of HUF 110 per share, which is also a 10% increase on last year.
This translates into a dividend yield of 9.2% at the current share price.
The exact dividend per share is calculated on the basis of the number of shares outstanding before the record date, taking into account the treasury stock.
Context
A significant part of last year's profit will therefore be returned to investors in the form of dividend payments: the more than HUF 220 billion dividend amount just announced is very substantial, although it does not surpass the 2021 and 2022 figures.
The basic dividend per share has increased from HUF 100 in 2022 to HUF 150 in 2023, which the company left unchanged last year, but now, based on the proposal of the Board of Directors, the increase may come again, albeit only HUF 15. Beyond that, the board of directors proposed a “only” HUF 100 per share last year, following the HUF 200 extraordinary dividend last year, which could now rise to HUF 110.
The total dividend proposed for the ordinary and extraordinary dividends is therefore HUF 275 per share.
It is important to note that after 2016 there was a share split in the company, when the nominal value was reduced by a ratio of 1:8 - this causes a lower dividend per share compared to pre-2016 levels.
As for the dividend yield, which is perhaps the most watched by investors, we should not expect a double-digit dividend yield for the stock, because if we take the current HUF 2990 share price as a basis, we get a dividend yield of 9.2%. This is of course
an extremely high dividend yield, but in recent years we have seen much higher dividends from Mol.
Mol can afford to pay high dividends
One of the most important shapers of dividend policy, in addition to future prospects, is of course the company's past performance: in this respect,
last year's figures were far from what the company could have achieved in the high oil price environment caused by the energy crisis,
but Mol has nothing to be ashamed of, as EBITDA of over $3 billion is a very strong long-term result.
It is also important to note that Mol has achieved its key targets for 2024 and has very similar expectations for 2025 compared with last year.
Share price reaction
Investors are rewarding the announcement of a higher dividend than last year, with Mol's share price currently up 3.1% - before the announcement the share price was up 2%.
Cover photo: Portfolio
