A Bunch Of Ex-Dividend Dates And One European Champion In TEV’s Ex-Dividend Calendar

Dear TEV Blog readers, welcome to a new overview of upcoming ex-dividend dates. Like every week, I want to show you some stocks that will go ex-dividend in the next days. I’ll also review a few companies that are currently in the focus of investors or that have an attractive fundamental valuation. Additionally, I’ll give you some insights into my retirement portfolio and/or share my thoughts and experiences about individual companies with you.

Why yields are a simple way to screen companies

Dividends are a great thing. Even in bad stock market times, they provide a juicy cash flow per month. If you want to benefit from dividend payments as quickly as possible, you must pay attention to the ex-dividend dates. This date is the day on which shares are traded without their subsequent dividend value. Only if you owned the stocks on this day are you entitled to receive the dividend.

Usually, there are always exciting dividend companies that are worth a second look. And the dividend yield is an excellent way to get an initial overview of companies that may be worth further due diligence. To help you get started, at the end of each week, I will publish the ex-dividend dates for the coming week of individual companies here in the TEV blog.

Why I handpick and double-check the upcoming ex-dividend dates next week

I have recently noticed that many databases do not indicate the respective numbers and dates correctly. Spontaneous dividend cuts, in particular, are only partially taken into account, or in some cases, not at all. As a result, the value of such overviews dwindles enormously.

Therefore, I’ve decided to select individual companies by hand and check the dates and dividend yields on the company websites, which means more work for me but increases the value of this section enormously, so it is worth it ūüôā

Because I’ve been asked about it by some of the readers: I don’t, of course, decide my investments based on whether a company goes ex-dividend or not. This overview is simply a way to screen companies regularly. By double-checking the current dividend yields, I scan the business development of companies more or less once a quarter and see if anything significant has changed in the companies. In the end, however, comprehensive due diligence always decides whether I invest or not.

Ex-Dividend Dates (36th calendar week)

As always, you’ll find some handpicked exciting ex-dividend dates below.

CompanyPayment DateYieldIn my retirement portfolio
Monday, August 31, 2020
Dunkin' Brands Group Inc. (DNKN)September 09, 20201.6%NO
eBay (EBAY)September 18, 20201.1%NO
The Goldman Sachs Group Inc. (GS)September 29, 20202.4%NO
Kellogg Co. (K)September 15, 20203.28%NO
Kronos Worldwide (KRO)September 10, 20205.5%NO
Lockheed Martin Corp. (LMT)September 25, 20202.4%NO
Fresenius SE (FSNUY)September 02, 20202%NO
MC Donalds (MCD)September 15, 20202.3%NO
Realty Income (O)September 15, 20204.4%YES
Stanley Black & Decker (SWK)September 15, 20201.75%NO
Tyson Foods (TSN)September 15, 20202,60%NO
Tuesday, September 01, 2020
Nvidia (NVDA)September 24, 20200.13%NO
Wednesday, September 02, 2020
Linde PLC (LIN)September 18, 20201.5%NO
Qualcomm (QCOM)September 24, 20202.24%YES
Home Depot (HD)September 17, 20202.1%NO
Thursday, September 03, 2020
Bank of America (BAC)September 25, 20202.8%NO
Brown-Forman (BF.A)October 01, 20201%NO
Blackrock Inc. (BLK)September 22, 20202.45%NO
Dominion Energy (D)September 20, 20204.8%NO
Fedex (FDX)October 01, 20201.2%NO
Genuine Parts Company (GPC)October 01, 20203.35%NO
Imperial Oil Ltd. (IMO)October 01, 20203.9%NO
Kimberly-Clark (KMB)October 02, 20202.7%YES
PepsiCo (PEP)September 30, 20202.95%YES
Waste Management Inc. (WM)September 18, 20201.9%NO
Friday, September 04, 2020
First American Financial (FAF)September 15, 20203.4%NO
Prudential Plc (PRU)September 17, 20206.4%NO

Fresenius SE

Many of you have written to me and said that you would like to have a closer look at European stocks. I recently wrote about some European stocks in an article about family-owned companies. Today, I want to use my “ex-dividend calendar” to write about an attractive European champion. The company is Fresenius SE.¬† It is one of the oldest European dividend aristocrats and is currently historically undervalued, which is mainly because the share price has fallen steadily in recent years. Therefore I want to take the opportunity for a closer look at the stock.

The Group structure

Fresenius is a global health care company with products and services for dialysis, hospital, and ambulatory/home care. The Group has four independently operating divisions. All segments are market leaders in growth areas of the healthcare sector.

  • Fresenius Medical Care: Fresenius Medical Care provides kidney dialysis services through a network of 3,994 outpatient dialysis centers, serving 345,096 patients. It is listed on the stock exchange. Fresenius SE currently holds 31 percent of the shares in Fresenius Medical Care and is thus the largest shareholder.
  • Fresenius Helios: Fresenius Helios is Europe’s largest private hospital operator. Fresenius Helios owns and operates HELIOS hospitals in Germany (111 of its own clinics and 24 rehabilitation clinics) and Quir√≥nsalud hospitals in Spain. Quir√≥nsalud is the leading private hospital operator in Spain, which operates 43 hospitals, 39 outpatient healthcare centers, and some 300 institutions for corporate health care in all of Spain’s metropolitan areas.
  • Fresenius Kabi: Fresenius Kabi offers essential drugs, medical products, and services for critically and chronically ill patients. It provides products (such as technologies for infusion, transfusion and clinical nutrition), services for dialysis, in hospitals and inpatient and outpatient medical care.
  • Fresenius Vamed: Fresenius Vamed is specialized in the project and management business of health care facilities. The portfolio includes project development, planning, construction, maintenance, technical management, and overall operational management of health care facilities. Fresenius SE holds currently 77 percent of Fresenius Vamed’s shares.

Below you will find once again an overview of the company. As you can see, Helios and Medical Care generate the most revenue, although Fresenius SE has only a minority interest of 33 percent in Fresenius Medical Care.

Fresenius SE business segments
Fresenius SE business segments

Revenue by region

Fresenius SE generates its revenue in the following areas:

  • North America (43 percent of total revenues)
  • Europe (43 percent of total revenues)
  • Asia-Pacific (9 percent of total revenues)
  • Latin America (4 percent of total revenues)
  • Africa (1 percent of total revenues).

Where does the lousy share price performance come from?

Fresenius SE’s share price has recently fallen sharply. In EUR, the company is almost 50 percent away from its 2017 high. You can see the reasons for this in the following. Even if Fresenius can still increase revenues, it has problems with profitability. For example, earnings per share fell from EUR 3.63 in 2018 to EUR 3.38 in 2019, even before Corona. The Corona crisis will intensify this development (because, for example, many operations had to be canceled or postponed). The operating and net margins will also fall below 5 percent.

Fresenius performance by segments
Fresenius performance by segments 

The revenue growth of the last years was mainly due to the acquisitions of other companies. The numerous takeovers have resulted in high debts. The mountain of debt (including all liabilities) now amounts to EUR 42 billion. The debt ratio is 60 percent. In my opinion, this is on the edge of what I still consider reasonable. On the other hand, Fresenius has a lot of cash in its hands with which it can service its debts. Currently, the amortization powers amount to EUR 4.2 billion.

dividend dates TEV Blog
Debt to total assets and amortization power powered by DividendStocks.Cash

Furthermore, the company still holds investment ratings with a stable outlook:

  • Standard & Poor’s: BBB;
  • Moody’s: Baa3;
  • Fitch: BBB-.

Outlook

Now, post-COVID, Fresenius SE expects growth of 3 percent to 6 percent and net income growth of -4 percent to 1 percent by the of FY 2020. Net debt/EBITDA is expected to be around the top-end of the company’s self-imposed target corridor of 3.0x to 3.5x.¬† The medium-term growth targets (2020-2023) are as follows (CAGRs):

  • Organic sales growth: 4 percent to 7 percent
  • Organic net income growth: 5 percent to 9 percent.

Thus, Fresenius will, therefore, continue to grow. It also operates in the important market for health services. Although the margins there are low (see above), demand for its services and products is expected to continue in the future. The company is, of course, profiting here from its global positioning of a strong market position in many markets (for example, hospital services and dialysis). In this respect, the fundamental valuation for shareholders has not changed in recent years.

Nevertheless, the times when the company can shine with high growth figures seem to be over. Now comes the time of consolidation. Fresenius SE must now prove that it can expand its acquisitions into meaningful and organically growing units.

Besides, the company must address its debts. The company has already proven in the past that it can get out of debt quickly. The management, therefore, has experience with deleveraging, even if this is no guarantee that the company will succeed again so quickly.

Fresenius has a proven track-record of deleveraging
Fresenius has a proven track-record of deleveraging (Source: Roadshow)

One of the very few real aristocrats in Europe

For dividend investors, however, Fresenius SE is attractive. It is one of the few dividend aristocrats from Europe and the only one from Germany. The company has increased its dividend every year for 28 years. The company has a very reasonable dividend policy, which I appreciate. Firstly, the company plans to align dividend growth to EPS growth.

Furthermore, Fresenius SE wants the payout ratio not to exceed 25 percent. While this is already relatively low, it shows a very conservative and defensive approach.  The current dividend yield of 2.14 percent is historically high. Recently, however, the rates of increase have fallen sharply. The last increase was just 5 percent. In 2018, Fresenius SE had increased the dividend by 20 percent. I expect growth to remain in the single digits in the coming years.

Dividend history for Fresenius SE
Dividend history for Fresenius SE powered by DividendStocks.Cash

Finally undervalued

The weakness of the share price has resulted in Fresenius being fundamentally cheaper than it has been for a long time. Even during the financial crisis, Fresenius SE had a higher adjusted P/E ratio than now. The overvaluation leads to an impressive upside potential of 70 percent by the end of next year, based on the adjusted P/E ratio. Of course, this is just an arithmetical shenanigan, but it illustrates the massive discount that the market has already priced in for Fresenius SE.

Fair value calculation Fresenius SE
Fair value calculation Fresenius SE powered by DividendStocks.Cash

Conclusion

As I wrote above, the company is now in a phase of consolidation, which could be a good opportunity for long-term investors to put shares into their portfolios.

And that is precisely what I have done. Last week, I bought 25 shares of the company and put them into my broadly diversified retirement portfolio. I will write about the reasons why I bought Fresenius right now in my TEV Report for August, which I will publish next week on September 01.

Time to do your due diligence

Has a company caught your interest? Attractive dividend yields should not be the only reason to buy shares of a company. Instead, you must carry out careful due diligence before every purchase. The Internet offers you excellent opportunities in this respect.

My analyses here on the TEV Blog are an excellent way to start (click here). You can also contact me here or ask the community in the comments if they can help with your due diligence.

Otherwise, I use tools like those from Dividendstocks.cash and Seeking Alpha to do further research. You can also find me and my analyses on these platforms. We also have a small but lovely group on Facebook that you can join. We share there only fundamental analyses of companies from various sources. So there is no spamming or anything like that.



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That said, feel free to let us know if I have overlooked an attractive stock or you know of a stock that is particularly attractive and where the ex-dividend date is coming up.

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anthony giaccio
anthony giaccio
1 month ago

share ex dividend dates 2 weeks before the ex date please

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