Why Fresenius shares will not pay a dividend in 2021 and what that means for investors

Why Fresenius shares will not pay a dividend in 2021 and what that means for investors

According to a report by www.aktienwelt360.de, Fresenius shares (WKN: 578560) are no longer a dividend aristocrat. Management has decided not to pay a dividend next year, which represents a significant departure from previous practices. The decision was due to the use of state energy aid, which entailed the condition that no profit distributions be made.

The lack of a dividend could be particularly disappointing for income investors as they now have to prepare for zero rounds. Management, which may have speculated on bonuses, will also be affected by this decision by the company.

The impact on the market and consumers is important. Fresenius shares, which previously had a dividend yield of almost 3.3%, will now no longer offer any distributions. This could lead to a change in investor behavior in the long term as income investors may lose interest in the stock. This could also affect confidence in the company's stability and long-term financial plans.

However, the decision not to pay a dividend could also have positive effects in the long term. The funds saved could be used to strengthen the company's balance sheet. This, in turn, could improve the long-term stability and quality of Fresenius, which could potentially have positive effects on the share price.

Overall, it is difficult to estimate the exact impact of this decision. Despite the lack of a dividend, Fresenius shares remain attractive with a moderate price-earnings ratio of around 12 to 14. It remains to be seen how the markets will react to these cuts and how the company's long-term financial plans will develop. Shifting the company's focus on quality and stability could lead to positive changes in the long term.