EVN AG: A Beacon of Dividend Stability in Europe's Renewable Transition

The European energy sector is undergoing a seismic shift toward renewables, and EVN AG (VIE: EVN) is positioning itself as a leader in this transition while delivering rock-solid income to shareholders. With a minimum dividend of €0.82 per share and a 40% payout ratio, EVN's financial discipline is underpinned by robust H1 2024/25 results, including €1.73 billion in revenue and €512.8 million in EBITDA, all while scaling renewable investments to secure its future. For income-focused investors, this is a rare blend of defensive cash flow and growth potential.

Dividend Policy: A Floor for Income Stability

EVN's dividend policy is a masterclass in balance. The company guarantees a minimum €0.82 per share payout annually, with a medium-term target of a 40% payout ratio of its adjusted net result. This framework ensures shareholders participate in earnings growth while allowing reinvestment in strategic initiatives.

The H1 2024/25 results provide ample evidence of its financial resilience. Revenue rose to €1.73B, driven by colder weather boosting energy demand, while EBITDA hit €512.8M. Even more critical: the company reaffirmed its full-year outlook of a €400–440M net result, which comfortably supports the dividend policy.

This consistency is rare in a sector rife with regulatory and commodity price volatility. EVN's Moody's A1 credit rating and low leverage (net debt of €1.295B) further insulate it from shocks, making its dividend one of the safest in European utilities.

Renewable Investments: The Engine of Long-Term Growth

EVN isn't just sitting on its cash flow—it's reinvesting aggressively in renewables to future-proof its earnings. The company has already committed to 500MW of wind capacity and 100MWp of solar projects, with plans to expand this footprint under its Strategy 2030. These projects aren't just about sustainability; they're about securing regulatory-backed revenue streams in a market increasingly favoring green energy.

The Science-Based Targets Initiative-approved goal to cut emissions by 70% by 2030 isn't just altruism—it's a strategic move to align with EU climate policies, reducing regulatory risks and ensuring stable demand for EVN's green energy. With €900 million annually allocated to investments through 2030, EVN is building a portfolio that will drive decades of cash flow.

Why EVN Is a Defensive Must-Have

In a market where utilities face rate risks, inflation pressures, and regulatory uncertainty, EVN stands out. Its diversified earnings base (covering generation, transmission, and retail) and stable customer base insulate it from short-term volatility. The 40% payout ratio ensures shareholders get a meaningful slice of profits without compromising growth.

Moreover, EVN's dividend history speaks to its reliability. The €0.90 per share payout in March 2025 (for FY2023/24) exceeded the new minimum threshold, signaling confidence in its strategy. As renewables scale, so will its earnings—and dividends.

The Case for Immediate Action

EVN offers a compelling “best of both worlds” opportunity: income security via its dividend floor and growth through its renewable expansion. With a dividend yield comfortably above the sector average and a balance sheet that supports both payouts and investments, this is a stock built to thrive in any market environment.

For income investors tired of chasing yield in volatile sectors, EVN is a rare gem. Its blend of stability, sustainability, and strategic foresight makes it a buy now—and a hold for the long term.

Act before the market catches on to EVN's dual-income-and-growth story.