Real estate developer Arco Vara is proposing its shareholders to continue the dividend policy that was in place until the end of last year, according to which dividends are paid to shareholders four times a year, totaling 6 cents per share. Thus, the yield of the investment is similar to LHV shares.<\/b><\/p>\n
Arco Vara, the first Estonian listed company to pay quarterly dividends since 2021, has received only positive feedback on its dividend policy from investors. According to Miko Niinem\u00e4e, CEO of the company, three years ago, the shareholders instantly welcomed the new dividend policy. “In general, Estonian investors are used to receiving dividends only in the middle of the year, but with Arco Vara, they can also enjoy dividend income before Christmas – this has brought great pleasure to investors,” explained the CEO of the stock exchange company, adding, that Arco Vara plans to continue this dividend policy in the future, regardless of the economic situation.<\/span><\/p>\n According to the proposal that will be made to shareholders, dividends will be paid as follows: 2 cents in June, 1 cent in September, 2 cents in December, and 1 cent in March per share. At the current price level of Arco Vara shares, the dividend yield is over 3.6%, which is in the same range as LHV Group’s dividend expectation for the current year. The list of shareholders, who will be eligible to receive quarterly dividends by Arco Vara, will be fixed on the 6th of each month.<\/span><\/p>\n Niinem\u00e4e said that Arco Vara, although operating in the real estate sector, has low leverage, which allows the company to continue investing even during periods of high interest rates. He believes that this is the fact that gives confidence in Arco Vara for investors. “In addition, we have built a strong and motivated team, with whose help we have increased sales revenue by nearly 60% in three years,” highlighted the real estate developer.<\/span><\/p>\n When looking at the Tallinn Stock Exchange in general, the CEO of Arco Vara believes that a significant activation among investors will not occur until interest rates by the central bank are changed. The positive Euribor rate has created a situation where, figuratively speaking, less money remains in circulation, thus putting investors in a waiting position. “I believe that investors\u2019 interest in dividend stocks is definitely higher than before, as exponential growth is not currently predicted for companies,” he explained.<\/span><\/p>\n In 2021, Arco Vara paid dividends to its shareholders amounting to 479,000 euros, in 2022, 624,000 euros, and according to the unaudited report for 2023, also 624,000 euros. The voting on the proposal to continue the dividend policy will take place at Arco Vara’s next general meeting of shareholders, where the 2023 annual financial results report will also be submitted. According to Arco Vara’s unaudited 12-month results, the company’s sales revenue last year exceeded 18 million euros, with a net profit of 3.6 million euros.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Real estate developer Arco Vara is proposing its shareholders to continue the dividend policy that was in place until the end of last year, according to which dividends are paid to shareholders four times a year, totaling 6 cents per share. Thus, the yield of the investment is similar to LHV shares. Arco Vara, the […]<\/p>\n","protected":false},"author":3,"featured_media":1782,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n