🇷🇺Russian Oligarchs & Dividends | My Risky 100x Bet.
you wont believe this incredible dividend bet.
Firstly, Welcome to the new 246 subscribers this week🎉 Support the newsletter, Become a paid subscriber below ⬇️⬇️⬇️ (every coffee helps)
📚Todays episode is about my own personal bet on russia’s oligarch businesses, for insane 100x opportunities and lifetime 100% dividend yields in some GREAT businesses.
Embark on a journey with me as we explore EVRAZ plc (LSE: EVR), a prominent player in the steel and mining industry.
🏗️EVRAZ: Forging Success in Steel and Mining:
1. Industry Overview:
- Core Business:
EVRAZ is a vertically integrated steel, mining, and vanadium business. The company operates across the steel value chain, from raw material extraction to the manufacturing of a diverse range of steel products.
- Global Presence: With operations in Russia, North America, Europe, and Kazakhstan & Czech Republic, EVRAZ has strategically positioned itself to serve various international markets.
2. Financial Strength:
- Revenue Streams: EVRAZ generates revenue through its steel and mining operations, providing a diversified income base.
- Financial Performance: Continuous efforts in operational efficiency and cost management contribute to the company's financial stability.
3. Dividend Growth:
- Historical Dividend Performance: EVRAZ has shown a commitment to returning value to shareholders through consistent dividend growth over the past 25 years. (Excluding since the Ukraine Russia war)
4. Industry Dynamics:
- Steel Market: EVRAZ's performance is influenced by global steel demand, infrastructure development, and economic cycles.
- Mining Operations: The company's mining operations, including coal and iron ore, contribute to its resilience in volatile markets.
5. Strategic Initiatives:
- Technological Advancements: EVRAZ embraces technological innovations to enhance production efficiency and maintain a competitive edge.
- Sustainability: The company is increasingly focusing on sustainable practices, aligning with global trends in environmental responsibility.
Dividend Growth Over the Years:
Let's delve into EVRAZ's dividend performance over the past 25 years:
- In 1998, EVRAZ's annual dividend was $0.02 per share.
- Fast forward to 2023, and the annual dividend now stands at $0.50 per share.
This reflects a remarkable 14.3% annual compound growth rate in dividends over the last quarter-century, showcasing EVRAZ's commitment to delivering value to its shareholders.
The Power of Compounding: A Case Study:
Now, let's explore the potential wealth accumulation from a $10,000 investment in EVRAZ 25 years ago, assuming dividends were reinvested.
- In 1998, with EVRAZ trading at approximately £0.23 per share, $10,000 would have acquired roughly 43,478 shares.
- Fast forward to May 2021, with the share price around £7 (before the war) that initial $10,000 investment would now be worth approximately £304,346. (30x) This growth is attributed to both stock appreciation and the compounding effect of reinvested dividends.
Why did I invest in EVRAZ?:
1. Value: With EVRAZ's current share price of £0.83 per share, and an annual dividend of £0.50. You’re buying at a 90% discount (compared to £7 per share before the war) and you will get a 61% dividend.
My average cost per share works out at: £0.80 which I think is considerably undervalued for a former FTSE 100 company.
2. Risk: As a value investor, I see value in EVRAZ. Wars are rare & im happy to invest for a few reasons.
1: Investing Life Lesson: it’s a great lesson for future investing regarding wars & sanctions.
2: Once In A Lifetime Opportunity: You don’t get many chances to buy a strong Former FTSE 100 company at a huge 90% discount with a 61% Dividend.
3: Raspadakaya & Evraz NA: EVRAZ also holds strategic assets such as Raspadskaya and EVRAZ North America (EVRAZ NA).
Raspadskaya Overview: Raspadskaya is a key subsidiary of EVRAZ, specialising in coal mining and production. (Evraz owns 90% of Raspadskaya)
- Significance: It contributes to EVRAZ's diversified revenue streams, providing essential raw materials for steel production.
- Strategic Importance: Raspadskaya enhances EVRAZ's vertical integration, ensuring a stable supply chain for the production of high-quality steel products.
EVRAZ North America (EVRAZ NA):
- Overview: EVRAZ NA is a leading steel manufacturer with a significant presence in North America.
- Operations: The company operates steel mills, tubular product facilities, and recycling center’s, playing a vital role in the region's industrial landscape.
- Strategic Positioning: EVRAZ NA strengthens EVRAZ's global footprint, allowing the company to cater to diverse markets and capitalize on the robust demand for steel products in North America.
In conclusion, EVRAZ emerges as a robust contender in the steel and mining sector, offering both dividend potential and strategic positioning, aswell as a low risk bet at a once in a lifetime opportunity for generational wealth.
Best regards, The Dividend Bull✅
Support the newsletter, Become a paid subscriber below ⬇️⬇️⬇️ (every coffee helps)