NOK - Nokia: Don't Be Excited About The Dividend And Buybacks (Rating Downgrade)
2024-01-25 15:35:52 ET
Summary
- Nokia's board of directors announced a dividend of EUR 0.13 per share and a new share buyback program of EUR 600 million after reporting fourth-quarter earnings.
- Nokia's operating margins may trend lower in the coming years, which is a risk that needs to be monitored closely.
- The decline in investment activity in the telecommunication sector and a slowdown in 5G investments in India pose challenges for Nokia's net sales growth this year.
- A closer look at the company's financial position, its competitive positioning in the mobile network equipment market, and its long-term outlook suggests that expected investment returns in the next 5 years are not attractive.
Nokia Oyj ( NOK ) is no longer the giant it used to be, but that does not mean the company is completely uninvestable. The company may not be appealing to growth investors looking for multibagger opportunities, but value investors with a soft spot for income may find Nokia an interesting bet today. After reporting Q4 2023 earnings , Nokia's board of directors proposed a dividend of EUR 0.13 per share based on Fiscal 2023 earnings and authorized a new share buyback program of EUR 600 million....
Nokia: Don't Be Excited About The Dividend And Buybacks (Rating Downgrade)