During the annual general meeting, Fresenius (FRE) shareholders approved to increase the dividend for the 27th consecutive time, making it one of the few true European dividend aristocrats. Its dividend per share was raised by 5%, to €0.84 per share from €0.80. The forward dividend yield is 2.13% and the 5 years dividend growth rate is still above 13%.
Fresenius remains on course for growth, even in the face of significant challenges presented by the COVID-19 pandemic. CEO Sturm confirmed the company’s medium-term outlook for 2020 to 2023. Sales growth is expected to increase by an annual average of 4 to 7 percent and net income growth by an annual average of 5 to 9 percent over this period.
Fresenius SE & Co. KGaA’s current dividend yield of 2.13% is 86% above its 5-year average. The 5-year average dividend yield is 1.14% (see red-line in the chart). This indicates the stock may be undervalued today.