The Milan Stock Exchange saw a slight decline in session, influenced not so much by negative macroeconomic factors or geopolitical tensions, but rather by a technical event much awaited by investors: the mid-year dividend payment. The operation, which involves six large Blue-chips (with a strong component linked to the energy and utilities sector), entails a purely accounting impact estimated at around -0.20% on the overall value of FTSE MIB.
The six blue-chip protagonists and their dividends
Today’s focus is in particular on the energy and network services sectors, which have always been among the most generous in terms of capital remuneration policies. Below is the list of FTSE MIB companies that are paying coupons and the approved amount per share today:
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Hera: 0.16 euros per share
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Leonardo: 0.63 euros per share
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Italian Post Office: 0.85 euros per share (total dividend balance of 1.25 euros)
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Snam: 0.1813 euros per share (total dividend balance of 0.3021 euros)
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STMicroelectronics (STM): $0.09 per share (first tranche of the overall dividend)
- Terna: 0.277 euros per share (total dividend balance of 0.3962 euros)
Not just blue-chips: smaller capitalization companies
In addition to the giants of the FTSE MIB, today sees the protagonists of numerous medium and small capitalization companies listed on the segments Mid Cap, STAR and Euronext Growth Milan. Also in this case there is a strong presence of companies linked to the management of networks and local public utility services, historically characterized by excellent dividend yields. Below are the main minor companies paying coupons today and the related amounts:
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Acea: 1.20 euros in total per share (made up of 0.95 euros of ordinary dividend and 0.25 euros of extraordinary dividend)
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Enav: 0.29 euros per share
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Iren: 0.1386 euros per share
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OVS: 0.14 euros per share
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Carel Industries: 0.195 euros per share
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Powersoft: 0.78 euros per share
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Digitouch: 0.033 euros per share
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Simone: 0.01 euros per share
The market reaction net of the coupon effect
By isolating the purely technical effect of the detachment of dividends, the real trend of the prices of the companies involved on the Milanese stock exchange shows substantial resilience. Net of the initial price adjustment, the energy stocks and other Blue-chips involved recorded positive or moderately strong changes on the stock exchange compared to the reference prices without the coupon. Companies such as Terna, Snam and Leonardo are even traveling in positive territory in terms of actual daily trade, demonstrating that the apparent decline in the FTSE MIB index is due to a mere technical convention and not to a real outflow of capital from Piazza Affari.
What is the ex-dividend date and the impact on the shareholder
To understand today’s market movement it is essential to clarify the technical dynamics of the “coupon detachment”. The dividend represents the share of profit that a listed company decides to distribute to its shareholders. On the day of the break (said ex-dates), the share undergoes an automatic reduction in its opening price equal to the amount of the dividend itself.
For those who own the share, the immediate impact is neutral in terms of overall assets: the lower value of the security in the portfolio is in fact compensated by the right to receive the cash consideration (the coupon), which will actually be liquidated in the following days (payment date which usually occurs two days after the ex-dividend date). The theoretical graph of the value of the security undergoes a “step” downwards, but for the investor it is simply a matter of the passage of a portion of value from the form of “invested capital” to that of “liquidity”.
