Shares of "Gazprom" jumped by 6% in anticipation of the decision on dividends

Gazprom will decide on dividends on May 26.Shares rose amid decision by the board of directors to hold a meeting in May to discuss recommendations on dividends from Gazprom GAZP$258.65 +5,92% Buy

Shares of "Gazprom" soared by 6.47% - up to ₽260 apiece at the auction of the Moscow Exchange as of 17:02 Moscow time. By 18:13, the growth of securities slowed down to 5.5%, and the price dropped to ₽257.6 per share.

Gazprom's stock rose in anticipation of the payment of high dividends. The Board of Directors of Gazprom, devoted to recommendations on the amount, timing, form of payment of annual dividends on shares, as well as the date on which persons entitled to receive dividends are determined, will be held on May 26, the company said.

Shares have risen in price despite the refusal of Gazprom to publish statements under Russian and international standards for the first quarter of 2022. The Russian government has allowed Russian issuers not to disclose, in part or in full, reporting, information on the issue of securities until the end of 2022. Companies will be able to take advantage of the new rules if the disclosure of the above information may lead to “imposition of restrictive measures against the issuer.

Gazprom's securities will stop trading on foreign exchanges on May 31 Brent , Oil and gas , Futures

Gazprom's dividend policy provides for the payment to shareholders of up to 50% of IFRS net income adjusted for non-monetary items. Since 2014, the company has been paying dividends   to holders of its securities every year.

Thanks to the increase in gas and oil prices , in 2021 Gazprom received a record revenue and profit in its history. Gazprom's net profit grew 13.3 times to ₽2.2 trillion.

In January, the head of Gazprom, Alexei Miller, reported that by the end of 2021, the company would show the highest financial result in the history of Gazprom. "And this means that dividends will also be absolutely record-breaking - both for Gazprom and among all Russian public companies."

The company paid dividends for 2020 in July 2021. Shareholders received ₽297.1 billion, or ₽12.55 per share. Gazprom paid the highest dividends per share in its history in 2018 — they amounted to ₽16.61 per share.

Given the large state stake in the company, it can be expected that dividends for 2021 will be paid in accordance with the dividend policy, that is, at least 50% of IFRS adjusted net income, analysts at ITI Capital said. Taking into account that the company has already published its financial statements in April, according to the results of the year, the payment may amount to ₽52.5 per share, experts predict.

20 European companies opened accounts with Gazprombank to pay for gas from the Russian Federation Gazprombank, Gazprom, Gazprom Neft

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Dividends are the portion of profits or free cash flow (FCF) that a company pays out to shareholders. The payout amount depends on the dividend policy. Their periodicity is also spelled out there - once a year, every half year or quarter. There are companies that do not pay dividends, but direct profits to business development or simply do not have the opportunity due to poor results. Stocks of dividend companies are most often of interest to investors who want to achieve financial independence or secure a decent standard of living in retirement. With the help of dividends, they create a source of passive income for themselves. More