Fresenius: No dividend - financial experts are positive about the decision

Fresenius: No dividend - financial experts are positive about the decision

According to a report by www.finanzen.net, Shareholders of the healthcare group Fresenius will receive nothing from the dividend for the current year. The board's decision to withhold state energy aid for the clinic subsidiary Helios and not repay it prevents the distribution of dividends to shareholders and bonuses to managers.

The impact of this decision could be profound. First, the lack of dividend payments will affect shareholders' income, especially if they rely on these payments. This could also weaken investor confidence in the company and lead to a decline in the share price, even though Fresenius shares had already initially fallen in XETRA trading.

For the company itself, foregoing the distribution of profits could help to reduce the high level of debt that the group has accumulated after a series of takeovers and which is depressed by the rise in interest rates. The dividend remaining in the group for 2023 was estimated at 516 million euros, and the decision to use this sum to reduce debt will potentially bring long-term benefits for the company.

Experts see the suspension of distributions as primarily positive, as it could accelerate the company's debt reduction. However, Fresenius announced legal action because linking energy aid to dividend and bonus payments is considered unconstitutional.

Overall, this decision could have a short-term impact on shareholders and the share price, but strengthen the company's financial stability in the long term.