- Nomura has monetized well during favorable market conditions in FY3/2021, and executed its cost reduction program ahead of schedule.
- Despite these positives, we feel they will experience a decline in market activity YoY. With limited cost cutting options, we believe earnings will fall YoY resulting in a dividend cut.
- Consensus already forecasts a FY3/2022 dividend cut and this is priced in. However, we are sellers of the shares with the limited predictability of earnings on offer.
For further details see:
Nomura Holdings: Dividend Cut Priced In, But We Are Sellers