Fresenius SE: Will Not Pay Dividend This Year After Accepting Government Aid

In a disappointing event for dividend investors depending on that income, narrow-moat Fresenius SE decided to accept EUR 300 million in government aid to offset higher energy costs in its German hospitals that also prohibits dividend payments and variable compensation payments to managers. We are not changing our EUR 50 fair value estimate on Fresenius SE, though, as keeping those cash flows on its books should be a value-neutral event for long-term investors. Also, after this one-year suspension due to a legal technicality, we expect the company's annual dividend payments will resume in future years. Fresenius SE shares remain significantly undervalued, in our opinion.