Entering text into the input field will update the search result below

PostNL Now Yields 8% As The Dividend Is Returning A Year Ahead Of Schedule

Mar. 06, 2021 11:45 AM ETPostNL N.V. (TNTFF)16 Comments


  • PostNL had a fabulous year and is reinstating the dividend sooner than expected.
  • It will pay out 0.28 EUR per share for FY2020 and is guiding for a dividend of 0.29 EUR per share for FY2021 and 2022.
  • PostNL will allow its shareholders to elect to get the dividend in new shares. No Dutch withholding tax is due on a stock dividend.
  • This idea was discussed in more depth with members of my private investing community, European Small-Cap Ideas. Learn More »


PostNL (OTCPK:TNTFF) has been a generous dividend payer in the years its financial position and performance allowed it to pay a dividend. This changed in 2019 when the Dutch postal services company was allowed to purchase a private competitor Sandd to strengthen its market share in the Dutch market. However, PostNL said it would suspend the dividend as it works on integrating Sandd in the system and is absorbing the 130M EUR acquisition. PostNL expected the suspension would last 12-24 months before gradually restoring the dividend. But then COVID-19 happened, and PostNL’s 2020 was an exceptionally good year allowing it to quickly reduce its net debt and reinstating the dividend at a rate higher than before the Sandd acquisition.

Source: Yahoo finance

PostNL has a primary listing on Euronext Amsterdam where it’s trading with PNL as its ticker symbol. The average daily volume is about 5.8 million shares for a monetary value of in excess of 20M EUR per day. The current market capitalization is approximately 1.78B EUR.

The company website only contains "download-only" links, but you can find all relevant information here.

Thanks to the COVID-tailwinds, 2020 was a fabulous year

It’s tough to imagine PostNL was a penny stock just about a year ago as the stock was sold down during the initial weeks of the COVID pandemic. As the market started to realize PostNL was actually slated to benefit from the lockdowns as it was massively benefiting from the boom in parcel deliveries, the share price started to gain momentum again.

This culminated in a very impressive fourth quarter as the parcel volume increased by about 30%, pushing the Q4 revenue to in excess of 1B EUR, which is about 50% of the first three quarters combined. This pushed the full-year revenue to 3.24B EUR, an increase of almost 15% compared to

Consider joining European Small-Cap Ideas to gain exclusive access to actionable research on appealing Europe-focused investment opportunities, and to the real-time chat function to discuss ideas with similar-minded investors!


This article was written by

The Investment Doctor profile picture
As I'm a long-term investor, I'll highlight some stockpicks which will have a 5-7 year investment horizon. As I strongly believe a portfolio should consist of a mixture of dividend-paying stocks and growth stocks, my articles will reflect my thoughts on this mixture.

Analyst’s Disclosure: I am/we are long TNTFF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I have a long position in PostNL but will be looking to monetize this position in the next 12-24 months.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (16)

I started building a position in PostNL around 3 years ago when I moved to The Netherlands. I was seeing the growth of ecommerce and impressed by how dominant PostNL was in this space. The stock price was in a perpetual decline over these years and I kept adding. COVID has been a much welcomed surprise and while tempted to sell at these levels I believe it's proven my thesis on this company while also improving their financial position. If the management can refocus (which I believe they're doing based on the latest divestments) I think the company will do well as ecommerce continues to swell post pandemic. My one concern is that with the disruption caused by the huge parcel demand there were many customers who will now want to diversify their delivery providers or switch based on negative experiences. Hopefully this will not have a negative long term impact to PostNL's market share. We already saw some negative effect in this area in Q419-Q120 before the pandemic set in.
Jion profile picture
Nice. If they sell me my parcels from Nederlands in less than two months, they will done great. The last one came after 72 days.
vanaik profile picture
Thanks for the article! The yield looks pretty attractive. Regarding the future outlook: I read that about 80% of parcels in the NL are delivered within 24h so PostNL is doing a good job right now. However, same day delivery is what customers want in the future.
So far Amazon has almost ignored the Netherlands and Bol.com is the leader in Dutch e-commerce. I saw they entered a partnership with PostNL for 2h delivery in Amsterdam in 2018 so it seems that things are moving somehow. But if Amazon decided to enter the market they could easily splash out on perfect last mile logistics and automated warehouses.
So how do you see the future outlook of the PostNL?
The Investment Doctor profile picture
@vanaik I'm not sure same day delivery is a big thing. It already exists at some online shops (like Bol & Coolblue) and the seller just uses a different courier service. I don't know how the demand (and willingness to pay) for same day delivery is, and I don't know how Amazon is planning on tackling this in the netherlands.
Nobody really wants same day delivery that much. Amazon tried using it as a selling point and they moved away from it.
@A Serious Man Tend to agree here. I order most products from bol just before bed and get it the next day. Most times I'll even schedule my deliveries a day or two later for convenience (when someone is home).
Hi thank you for the analysis.
How do you assess the risk of PostNL losing its universal service obligation granted by the Dutch government and its potential impact on earnings?
The Investment Doctor profile picture
@Dom90_SC I don't think there's any other Dutch postal services provider that would be up to the task on a national scale. With declining mail volumes and a relatively small market, third parties may not even be interested in trying to compete for the status.
@Dom90_SC I live in NL. PostNL does not have a lot of competition from the private players here as they provide great service and at par with the big parcel services around the world.
I fail to see the rationale for selling the stock in 12-24 months. Currently yielding almost 8 percent, a payout ratio of 65 percent, a 3 percent div hike announced for 2021, a healthy balance sheet and a solid moat, it doesn't often get much better that for a dividend investor. This is one of the stocks for which I currently hold cash to invest once markets correct.
The Investment Doctor profile picture
@monnemvonne It's an oversized position for me now as I added at March/april lows. The COVID tailwinds will cease to persist in 2022-2023 and then shareholders have to rely on management knowing what it's doing again. A job they didn't really do very well pre-COVID.

Basically, the covid windfall is giving the management a chance to hit the reset button. But I'm not particularly impressed with them so I'll be looking to gradually exit my position throught the written call strategy as outlined. I won't sell at 3, I won't sell at 3.25. But if my stock would get called away at 4EUR after writing a C4 for June next year at 0.30, I wouldn't lose a night of sleep over it.

And as you mention, you are holding your cash for when markets correct. That implies you also aren't a buyer at the current levels, right?
@The Investment Doctor Thank you for your thoughtful reply. I agree with all your observations and most of your interpretations.
We come to opposite conclusions only where our own portfolios are concerned. Fair enough you plan to reduce what you consider an oversized position. In contrast, I have added some shares at current prices (still yielding 7.6 percent) so PostNL now represents one percent at cost of my holdings. Believing the new dividend will be maintained, I am prepared to double this position, preferably during a market correction.
The Investment Doctor profile picture
@monnemvonne Oh yes I see. PNL is now over 3% here and considering the easy money has been made, I'm looking to reduce the size. It indeed is a whole different story if you're only starting to build the position.
suchenwi profile picture
The PostNL weekend close quote in Germany was 3.632€.
Not bad, considering I bought in 2018 at 2.79.
That was part of a "global postal stocks" experiment I started as 1st year apprentice investor (having worked for decades in postal automation), with Portugal, Italy, Austria, Germany, Belgium, Netherlands, UK Royal Mail, up to Japan Post Holdings...
Looking at gains, Poste Italiane, PostNL (both with good dividend news), Deutsche Post (favored by tax law) are highly green (+20..30%), the others still red, but slowly creeping up.
The experiment continues... ;^)
Mike Zoerer profile picture
@suchenwi you should also be happy with postAT I guess, as they keep paying a dividend of approx 2 Euro, which makes for about 5,5-6% yield. I hold this stock for a long time, and enjoy the reliable high dividends, rather ignoring stock price fluctuations.
suchenwi profile picture
@Mike Zoerer Just checked, my net yield on cost after Austrian and German taxes is 3.3% - still ok...
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.