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Hochtief: Take A Long-Term View And Enjoy The 5% Dividend

Ellsworth Research profile picture
Ellsworth Research


  • Hochtief subsidiary CIMIC incurred significant one-off costs in both 2019 and 2020.
  • To avoid a loss in 2020, a 50% stake in cash cow Thiess was sold.
  • Hochtief actively managed the risk profile and expects to grow operational net profit in 2021.
  • The stock price more than halved since 2017, but traded sideways for the past year indicating it has bottomed out.
  • The current price of €77 generates an 5% dividend yield and offers an attractive entry point for the long-term investor.

Cost Rises Plague Elbe Philharmonic Hall Construction
Photo by Joern Pollex/Getty Images News via Getty Images

Investment thesis

Hochtief (OTCPK:HOCFF) posted disappointing numbers for the second year in a row. On the back of this performance, the share price more than halved since it hit a high

This article was written by

Ellsworth Research profile picture
European DGI with a background in engineering and data analysis.Through SA I share the research upon which I base my personal investment decisions. In this regard my articles should not be interpreted as investment advice, but rather as an opinion. In the process of gathering information about a certain stock I encourage readers to consider opinions of different writers, preferably with opposing views as part of the due diligence process.

Analyst’s Disclosure: I am/we are long HOCFF. 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.

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.

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