RusHydro (RSHYY) just recently increased its dividend by 42%. It now yields 6.4%. What if I told you that this yield is still artificially depressed and thus likely to head higher? Well, that’s what I am going to do in this article.
First things first. RusHydro is one of Russia's largest power generating companies, spanning the country from east to west. It generates most of its electricity (~70%-75%) from renewable energy: hydropower. It also has a retail distribution segment and its assets include large grid (100,000 km) and heating network (4,000 km) components.