Analysts expect €300m in Mowi dividends in 2021. And next year it could be even more

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In line with Covid-19 concerns and falling prices for salmon, fish farming giant Mowi skipped dividends last year. This year and next year, however, the dividend outlook is considerably better.

The investment banks that cover Mowi now estimate a cash dividend of EUR 0.58 per share this year.

With 517 million outstanding shares, this means a total dividend of EUR 299.9 million.

Market balance
Although the price of salmon has strengthened in the last two weeks, the market is still not healthy. The Horeca segment is still faltering during the many closures of restaurants and cafes. The air freight capacity, essential to supply overseas markets, is still limited.

This will be felt in sales prices, revenues and earnings – for Mowi and other fish farmers – in 2021. But in 2022, the market balance will look better, analysts believe.

Thus, Mowi’s net earnings per share are estimated to increase – from 0.88 euros to 1.23 euros – from 2021 to 2022.

The dividend is also expected to increase. In 2022, analysts expect Mowi to pay EUR 0.89/share in dividends. This means a so-called dividend yield of 4.1 percent, based on the current share price.

Neutral
Of the 11 investment banks that, according to Infront, have coverage on Mowi, three have positive recommendations. Seven have neutral recommendations and one bank has a negative recommendation on the stock.

This clearly means that analysts think Mowi has a fair valuation. The Mowi share was last traded at NOK 216, a marginal decrease from yesterday.