Dividends of PJSC Megafon 2021: size and date of the next payment

Buying strategy in advance

The table shows how many days in advance it was necessary to buy a share so that after the dividend cutoff the purchase price would be equal to the price after the gap.

For example, a share on the last day of purchase costs 100 rubles, and dividends on the share are 10 rubles. For the sake of convention, let’s assume that the commission is 0.5 rubles. You bought a share in advance for 90 ₽. After the dividend gap, the share will be 90 ₽ (100 ₽ – 10 ₽). You will receive dividends and can sell the share for 90 rubles.

The final profitability will be -90 ₽ (bought a share) +90 ₽ (sold a share) + 10 ₽ (dividend) – 1.3 ₽ (13% tax on dividend) – 0.5 ₽ (commission), which will be retained by the broker.

Financial results: +8,2 ₽.

If you buy a share on the last day of purchase for 100 rubles and sell it the next day for 90 rubles, then there will be a minus even taking into account dividends. Dividends will come minus 13% tax, and you will also pay a commission to the broker for transactions.

The final yield will be -100 ₽ (bought a share) + 90 ₽ (sold a share) + 10 ₽ (dividend) – 1.3 ₽ (13% tax on dividend) – 0.5 ₽ (commission).

Financial results: -1,8 ₽.

Buying strategy after a gap

The table shows how many days it will take for the stock to recover to the price on the last day of purchase.

For example, a share on the last day of purchase costs 100 rubles, and dividends on the share are 10 rubles. For the sake of convention, let’s assume that the commission is 0.5 rubles. After the dividend gap, the share will be 90 ₽ (100 ₽ – 10 ₽). If you buy a share after the gap for 90 rubles, you will no longer be able to receive dividends. A strategy to make money by restoring the share price to 100 rubles.

The final profitability will be -90 ₽ + 100 ₽ – 0.5 ₽.

Financial results: +9,5 ₽.

As you can see from the data in the table, some stocks do not recover for a long time.

History of results of the last day of purchase and ex-dividend date

How paper behaved these days

How to use : you can earn a few percent on the growth of a stock by buying on the last day of purchase or ex-dividend date.

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Information disclosure

MegaFon dividends

How to receive dividends . The dividend cut-off date is still unknown. To receive MegaFon dividends, you need to buy shares two days before the closure of the shareholder register, because trading takes place in T+2 mode.

Dividend payment . The forecast payout per share is unknown. Dividends are paid no later than 25 working days from the date of closure of the register. Funds are credited to your brokerage account or card.

How to buy shares . Open a brokerage account. Large brokers have an application or program for trading, such as QUIK. Enter the company name or ticker symbol - MFON. You can buy a minimum of 1 lot, which is equal to shares. Use the calculator to calculate your income.

Personal income tax (NDFL) . Your broker will withhold personal income tax at 13%. And it will list the proceeds minus income tax on dividends.

Broker and exchange commissions . You pay a commission when you make a trade. It reduces the final return of your portfolio. To reduce commission costs: choose a broker with low commissions and make trades less often.

Dividend policy

On May 24, 2017, a new version of the document was approved. The minimum dividend amount is 70% of free cash flow. The main goal is to ensure payments so that the ratio of net debt to OIBDA does not exceed 2.

But Megafon demonstrates flexibility in terms of this indicator, mainly when attracting debt financing to carry out strategic transactions that will lead to an increase in the value of shares in the future.

When determining the size of Megafon's dividends, the following are taken into account:

• the size of free cash flow;
• capital requirements;
• ability to service obligations within established time frames.

The possibility of paying Megafon dividends is being considered by the Finance and Strategy Committee operating under the Board of Directors.

They take into account current financial indicators and the CEO’s proposals on the areas of distribution of net profit. All indicators for the purposes of dividend policy (according to IFRS) do not take into account the financial results of Mail.ru Group.

Changes over the year

Soldatenkov called 2021 a “turning point” for the company, as it was marked by the fight against the downward trend in revenue in the telecommunications industry. According to the general director, last year the operator moved from the pursuit of increasing its subscriber base to improving the quality of services for existing subscribers.

Changes also occurred in the pricing policy - Soldatenkov was the first Russian operator to abandon unlimited tariff plans. A new tariff line “Turn on!” has appeared, created based on big data analysis. Tariffs for this line were determined based on the profile of subscribers' behavior. According to Soldatenkov, 76% of Megafon subscribers are connected to medium and expensive tariff plans.

Soldatenkov also said that in 2021, the transformation of Megafon began “from a traditional telecom operator to an operator of digital opportunities.” According to him, digital subscribers have become the company's new target audience.

All company dividends for the last 10 years

MegaFon shareholders agreed on the amount of dividends

Taking into account the final dividends in the amount of 64.51 rubles. and interim dividends for the 1st quarter of 2013, paid in July 2013, the total amount of dividends for 2013 amounted to 74.85 rubles. per share. The total amount of dividends paid was RUB 46.4 billion, and the dividend payout ratio was about 90%.

The Company would like to inform its shareholders about changes in Russian legislation regarding the procedure for paying dividends, which came into force on January 1, 2014. As a result of these changes, the payment and receipt of specified dividends to ultimate holders of shares and GDRs is now carried out as follows:

• MegaFon pays dividends to persons listed in the register of shareholders. Such persons may be either registered shareholders or nominee shareholders, accounting for shares of other sub-nominal holders, trustees and direct shareholders. The Company's obligation to pay dividends is considered fully fulfilled from the moment of transfer of dividends to shareholders and nominal holders of shares registered in the register of shareholders.
• Once the Company remits dividends to the accounts of its registered nominees, those holders are responsible for remitting the dividends to the persons for whom they are nominees—ultimate owners and sub-nominees, including Bank of New York Mellon (“BNYM”), which is the Company's depository bank for the GDR program. Nominee holders, including BNYM, are responsible for making payments to persons for whom they nominally hold shares (“cascading” payment system).
• Nominal and subnominal holders are required to transfer dividends to the links of the “cascade” system (other subnominal holders) within one business day after receiving the dividends; and in the case of payments to BNYM and shareholders, within 7 business days of receipt.
• BNYM will distribute dividends to GDR holders in accordance with the terms of the GDR issue and other internal procedures. The duration of the dividend transfer process may be affected by the payment processing times of DTC and Euroclear/Clearstream payment systems.

The company also informs shareholders about changes made to legislation regarding the procedure for withholding taxes on dividends. The taxation process for dividends received is as follows:

• Dividends paid to residents of the Russian Federation are subject to taxation at a rate of up to 9%. Dividends paid to non-residents of the Russian Federation are generally subject to tax at a rate of 15%.
• If the ultimate nominee holder of the shares is a Russian depositary, then it is responsible for determining the applicable tax rate for shareholders, as well as for withholding and paying tax to the budget of the Russian Federation.
• With respect to GDR holders, Sberbank of Russia, acting as BNYM's depositary for the Company's GDR program, will act as withholding agent and withhold tax based on the information provided to BNYM by GDR holders as of the record closure date. Please note that failure to timely provide information requested by BNYM will result in a penalty tax rate of 30%.

Given the complexity of changes in legislation, shareholders and holders of GDRs are advised to seek advice from persons holding nominees of their shares or GDRs, as well as legal and tax professionals regarding the procedure for receiving distributed dividends and the applicable tax treatment. GDR holders are advised to provide the information requested by BNYM on a date close to the registry closing date. Shareholders registered on the share register on the closing date are advised to seek advice from the Company.

Additional information regarding dividends is available on the Company's website

Stock return

Megafon has been paying dividends since 2013 (the company entered the Moscow Exchange in 2012). The last time the decision on payments was made was on July 11, 2017 (RUB 32.25 each, yield 5.88%).

The dividend strike was 5 years. In addition to the annual ones, interim ones were accrued. Distribution of net profits to shareholders was then abandoned due to increased investment. Large expenses are associated with the deployment of 5G networks in the Russian Federation and compliance with the requirements of the Yarovaya Law (35–40 billion over 5 years). The company is in a financial hole, but is doing everything possible to restore its financial performance. They plan to return to payments in 2021.

The following factors may have a negative impact on the size of Megafon's dividends:

1. High capital requirement to implement the investment strategy.
2. Fierce competition in the market.
3. The share price has fallen by almost 2 times since 2012.
4. Maintaining public company status is no longer a priority.

Publicity becomes an obstacle to transactions with increased risk, active cooperation with state corporations and experimental partnerships. In 2021, the company was delisted from the London Stock Exchange (LSE), and part of the shares traded on the Moscow Exchange (MOEX) was purchased.

Megafon dividend payment 2021

Will Megafon pay dividends in 2021?

› › › Megafon decided not to pay dividends in 2021 due to the large amount of expenses for the development of activities and the implementation of a number of Russian laws. The company is in a financial hole, but is taking active steps to restore its performance and dividend payments. In 2021, it was decided not to distribute the Company’s net profit based on the results of 2021 and not to pay dividends. Megafon is one of the leading Russian companies in the field of digital communications and cellular communications.

It also provides local telephone services, broadband Internet access, and cable television. In addition to the domestic market, it offers its services in the CIS countries, as well as in Abkhazia and South Ossetia.

At the end of 2021, the subscriber base exceeded 77 million, 53% of whom have access to the 4G standard.

The company will not declare interim payments to shareholders in December

from 12/01/2017, 14:02 MegaFon does not plan to change its dividend policy in the near future due to the deployment of 5G networks and the need to implement the requirements of the Yarovaya Law.

“In general, our strategy confirms the implementation of the dividend policy announced in May”

, he added, explaining that the decision to revise dividends is made by the board of directors.

At the end of October, the head of the board of directors of MegaFon, Ivan Streshinsky, stated that the operator may decide not to pay dividends to shareholders, since this contradicts the strategic goals of the company and USM as its controlling shareholder.

MegaFon dividends: how much does development cost?

Moscow, March 16 - “Vesti.Ekonomika”.

For the first time since 2012, one of the largest telecom operators in Russia, MegaFon, refused to pay dividends to shareholders. The operator's completely renewed board of directors announced a refusal to pay dividends for 2021.

and recommendations to refrain from paying in 2021. Let's try to understand the reasons for this decision and analyze the behavior of competitors, writes Mikhail Lapin, head of the project department at Bell Integrator.

Mikhail Lapin, head of the project department at Bell IntegratorTaking into account MegaFon’s digital strategy until 2020, published in May 2021, it is obvious and we predict that the operator will move away from increasing the base of new subscribers, i.e.

Megafon may not pay dividends for the second year in a row

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The Nikulinsky Court of Moscow fined the editor-in-chief of “Takih Dela” Anastasia Lotareva and the head of the portal’s special projects department Sergei Karpov for pickets in support of Meduza journalist Ivan Golunov.

How much dividends MTS can pay in 2021: expert forecasts

› › › According to the forecast, MTS will pay annual dividends in the amount of 26 rubles in 2021.

The forecast for MTS dividends in 2021 is based on a study of the company’s operating results for the reporting period and other relevant news.

The current dividend policy of MTS has been in effect since 2021. According to the document, part of the free cash flow (FCF) for the reporting period is allocated to pay income to investors. Management set a plan to achieve a dividend per share of 25-26 rubles, the minimum possible value being 20 rubles.

Otkritie Broker company blog | Megafon may return to paying dividends

Timur Nigmatullin, analyst at Otkrytie Broker. The operator presented financial and operational results in accordance with IFRS as the last of the Russian “Big Three”, after VEON and MTS. At the time of reporting, Megafon continued to consolidate the results of Mail.Ru Group on the basis of ownership of 63.8% of it voting shares. Taking this into account, the combined company's total revenue increased by 6.1% (y/y) to RUB 91.5 billion. The OIBDA margin on revenue decreased by 2.5 percentage points.

and amounted to 34.7%. However, Megafon's economic interest in Mail.Ru Group is only 15.2%, and aggregate reporting data is still unrepresentative. When analyzing the investment attractiveness of the company, we continue to focus separately on the market value of the package in Mail.Ru and the results of the telecom segment of Megafon. Revenue directly from the telecom segment of Megafon added 2.6% (y/y) to 76.5 billion rubles

Revenue from the telecom segment of Megafon in Russia, in turn, increased by 2.6% (y/y) to RUB 75.4 billion.

Megafon will not pay dividends in 2021

Megafon, one of Russia's largest telecommunications operators, said on Thursday it will not pay dividends in 2021 as it plans to increase capital expenditures to meet data storage law obligations and continue to roll out its LTE network. After the announcement, the company's shares fell 7 percent. Megafon forecasts that revenue from telecommunications services will remain at the 2021 level or will increase slightly this year, while core profit will remain unchanged compared to 2021.

The company plans to increase capital expenditures to 75-80 billion rubles ($1.3-1.4 billion) in 2021 from 56 billion rubles in 2020 in order to improve the quality of services, continue the deployment of the LTE network and fulfill obligations to implement the Yarovaya Law. . By law, telecom operators are required to store all telephone conversations, text messages, images, sounds, videos and other electronic communications of users for six months.

Megafon will not pay dividends for the year for the first time since 2012

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According to Megafon's forecast, this year its capital expenditures will amount to 75–80 billion rubles. against 56 billion rubles. in 2021

Yaroslav Chingaev / for Vedomosti The board of directors of Megafon recommended not paying dividends in 2021, the operator reported.

Megafon without dividends

March 16, 2021 This came as a surprise to investors, as follows from the Veles Capital analytical report. By 19.00 Moscow time, Megafon’s GDRs on the London Stock Exchange (LSE) fell by 8.4% to $9.4.

A Megafon representative did not comment on the drop in quotations.

Throughout its public history (the initial public offering of Megafon shares on the LSE took place in 2012), it regularly paid annual dividends, notes Sova Capital analyst Alexander Vengranovych. At the end of 2021, it refused to pay interim dividends, but there was no talk of refusing to pay dividends for the whole year, he notes. According to Megafon’s dividend policy adopted in May 2021, the operator pays dividends in the amount of 70% of free cash flow (if its net debt is less than two annual EBITDA indicators).

How to buy shares and receive dividends

Megafon's ordinary shares are traded on the Moscow Exchange. You can purchase securities through a licensed broker by signing the appropriate agreement. The broker will independently withhold 13% of the personal income tax; you will not have to fill out a declaration. It is worth taking into account brokerage and exchange commissions, which reduce the final profitability.

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Vladimir Silchenko

Private investor, stock market expert and author of the Capitalist blog

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Work with real assets (Megafon shares) is carried out only on stock exchanges. Binary options and Forex trading (contracts for difference) are high-risk trading, leading to the loss of invested funds in 80% of cases. This method can’t even be called making money, since in the long term, BOs only result in losses.

Federal events

Soldatenkov also participated in the discussion of the Digital Economy state program, where the operator headed the working group on information infrastructure in 2021. The company is taking part in the digitalization of a number of Russian regions - relevant agreements have been signed with the Republic of Udmurtia, the Ulyanovsk and Pskov regions, and a pilot project for their digitalization has already been launched.

Currently, Megafon, which took part in providing communications during the Confederations Cup in 2021, is preparing for the FIFA World Cup, where it plans to create zones for testing the 5G communication standard. Soldatenkov notes that the operator, together with Huawei, achieved a speed of 35 Gbit/s when transmitting data using the 5G standard at the economic forum in St. Petersburg in June 2021.

Division of Euroset

In February 2021, Megafon and VEON (formerly VimpelCom) completed the division of the Euroset business. Let us recall that Megafon and VimpelCom agreed on the division of Euroset in July 2021. The company itself, along with its brand, remained with Megafon, and half of its stores, that is, about 1.7 thousand, were transferred to VimpelCom . In addition, VimpelCom paid Megafon 1.2 billion rubles as part of this transaction.

Megafon also reported that after the division of Euroset it would consider the option of merging the retail company with its competitor, the Svyaznoy network. Since 2015, Svyaznoy has been owned by entrepreneur Oleg Malis , the brother of Alexander Malis , who headed Euroset in 2009.