Bayer AG is one of the leaders in the DAX when it comes to dividend yields. The company attracts investors with an almost unbelievable 8.25 percent dividend yield. But is this number realistic or just an illusion?
Slump in profits equals dividend cut?
Bayer's 30 percent payout ratio could mean that shareholders can expect a significantly lower amount than last year. Analysts are predicting a sharp decline in profit figures for the past financial year. Instead of 4.22 euros, earnings per share could only be 1.33 euros - a decline of two thirds. This would mean that shareholders would only receive 80 cents per share, which corresponds to the 2004 level.
