Gazprom: more than ever a long-term buy?

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Gazprom – massive dividends and value catalysts galore

27 March 2020

There is a short-term perspective on Gazprom, and then there is its longer-term potential.

In the more immediate future, investors who buy now can expect significant dividends. The most up-to-date estimates make for an estimated 2021/22 dividend yield of 12.6% and 17.8%, respectively. This is possible because the company has the world's lowest production costs for gas. Even if energy prices remained under pressure, Gazprom will continue to earn billions of dollars each year.

Looking a few years into the future, there are ten exciting aspects to consider, including:

  • Potential IPOs of subsidiaries.
  • The sale of non-core assets, which could yield billions of extra cash.
  • China becoming as large a Gazprom client as Germany.

There is a lot that the wider investing public does not currently have on its radar.

Would you have known that from 2020 onwards, the bonuses of Gazprom's management team also depend on the stock price performance?

Gazprom stock is currently trading at a price that does not even cover the value of the company's pipeline network – and all other assets are effectively thrown in for free.

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