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Gazprom mulls $6 billion dividend (OGZPY, RSX)

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The biggest gas distributor in the world, Russia's Gazprom ( OGZPY , quote ), is boosting its dividend after basically being dead money for years. Allocating $6.2 billion -- roughly 52 cents per U.S. share, twice as much as previously -- to shareholder payouts may finally give OGZPY some fundamental support. The company may be a state monolith 50% controlled by the Kremlin. But a 5.1% dividend yield trading at an enterprise value divided by EBITDA of 2.7 is still very attractive. The dramatically enhanced payout is not a done deal yet. The board needs to approve it in the spring and then shareholders will vote. But with OGZPY cutting its capex budget to $24 billion next year, the company will definitely have the cash. Gazprom routinely pays less than that in tax every year. While OGZPY itself is a little obscure in the United States, any trader can get decent exposure to this stock via most Russian ETFs and mutual funds, which weight the stock extremely heavily. OGZPY accounts for 8% of funds like RSX ( quote ), for example.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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