Here’s how investors are reacting to the dividend cut

Bochum
Just a few days ago, Simon Stippig was sure. The Bank Warburg analyst argued that he considered it rather unlikely that the market would debate a dividend cut by the Dax group Vonovia. It wouldn’t exactly increase confidence in the business model.

But on Friday, investors and retailers initially reacted with little shock to the drastic reduction in dividends announced the previous evening by Germany’s largest housing group. Before the market, the shares of the Dax group, which had already lost significantly on Thursday, were even slightly up.

Vonovia surprisingly announced on Thursday evening that the Bochum-based company intends to significantly reduce the dividend for the past year despite increasing profits. Instead of a distribution of EUR 1.66 per share, CEO Rolf Buch will only propose a dividend of EUR 0.85 per share at the general meeting.