TKH Group Announces Reduced Dividend of €1.50

TKH Group is reducing its dividend to €1.50, a 4.3% annual payment that is above the industry average. The payment could potentially have solid earnings coverage, but the company's lack of cash flows makes it difficult to sustain. The dividend has seen some fluctuations in the past, but it has also grown at 4.1% CAGR since 2015.

TKH Group, a Dutch multinational company, has announced a reduction in its dividend to €1.50 per share, effective for the current fiscal year. This represents a 4.3% annual payment, which is above the industry average. The decision comes amidst a period of fluctuating dividend payments, with the company's dividend growth rate standing at 4.1% CAGR since 2015 [1].

The reduction in the dividend follows a period of mixed performance for the company. While TKH Group has seen a decline in its share price over the past three years, its earnings per share (EPS) have improved by 2.6% annually. This discrepancy suggests that the market may have been overly optimistic about the company's growth prospects in the past [2].

The dividend reduction raises concerns about the company's ability to sustain future payments, given its lack of cash flows. Despite the reduction, the total shareholder return (TSR) over the last three years has been -19%, which is better than the share price return of -27%. This indicates that the dividend payments have been a significant factor in the overall performance [2].

Investors should consider the fundamental data and other metrics to assess the long-term growth potential of TKH Group. The company faces several challenges, including a lack of cash flows and potential overselling in a falling market. However, long-term shareholders have made money, with a gain of 5% per year over the past five years [2].

The dividend reduction highlights the importance of considering both the share price return and the TSR when evaluating a company's performance. Investors should keep an eye on the company's fundamental developments and consider the broader market context when making investment decisions.

References:
[1] https://www.etnownews.com/markets/270-dividend-announced-by-tata-company-q4-results-2025-update-stock-up-196-in-2-years-article-151466504
[2] https://finance.yahoo.com/news/tkh-group-ams-tweka-investors-051904769.html