The Nest Egg Portfolio: Orange Belgium Is Re-Entering The Portfolio, Anticipating A 3.5-4% Dividend Yield
Published Sep 26, 2020 on Seeking Alpha

Seeking AlphaLong Ideas | BelgiumThe Nest Egg Portfolio: Orange Belgium Is Re-Entering The Portfolio, Anticipating A 3.5-4% Dividend YieldSep. 26, 2020 11:35 AM ET|| About: Orange Belgium (MBSRF), MBSRY, Includes: ANIOF, ATRBF, BTGOF, EUCMF, FLTDF, KLPEF, RBSFY, RDS-A, RDS-B, RUBSF, RYDAF, RYDBF, TOT, TTFNF, UNBLF, UNRDY, URMCY, WRDEFby: The Investment DoctorThe Investment Doctor European Small-Cap IdeasWe zoom in on capital gains and dividend income in European small-capsSummaryOrange Belgium's share price hasn't recovered at all despite very robust H1 results.
The free cash flow is increasing fast and the dividend is very safe.
I expect the company's share price to start moving in the right direction once the company knows how much it will have to pay at the next spectrum auction.
Introduction
While most companies have seen their share prices recover, the performance of commercial REITs is having a negative impact on the total performance of the Nest Egg Portfolio. Not only are the share prices spiraling down, it also will be tough to expect reasonable dividend payments from the REITs. Most REITs will have to pay a minimum dividend to continue to satisfy the regulatory requirements, but on the one hand I'm expecting the REITs to postpone dividends until 2021 to make sure balance sheets remain robust, and on the other hand, I wouldn’t be surprised if some of the REITs will issue a stock-only option to satisfy those requirements. In case you missed the previous Nest Egg Portfolio article, you can re-read it here.
In this edition of the Nest Egg Portfolio, Orange Belgium (OTC:MBSRF) (OTC:MBSRY) is re-appearing in the portfolio. After an initial strong performance about two years ago, Orange Belgium was sold at a profit in 2019 but the recent 30% price drop and strong free cash flow in the first semester makes the company appealing again. Orange Belgium’s website mainly contains "direct download" links, but you can find all relevant... Read more