Veolia Environnement SA (ADR) (VE): Could This Big Dividend Stock Finally Be Turning Around?

Changes to the dividend?

As a non-American company, Veolia’s dividend policy is different from what you might be accustomed to. Instead of a solid payout that increases little by little every year, many non-U.S. companies evaluate their financial position every year and determine what a healthy dividend payout would be. That means the yield can change significantly every 12 months.

Given that adjusted free cash flow was virtually flat for the first six months of 2013, I wouldn’t expect any dramatic increases in the company’s dividend payout. Then again, much of Veolia’s revenue is tied to Western Europe, and those economies appear to be steadily recovering. That could mean better business for Veolia over the next six months — but that remains to be seen.

The article Could This Big Dividend Stock Finally Be Turning Around? originally appeared on Fool.com and is written by Brian Stoffel.

Fool contributor Brian Stoffel owns shares of Veolia Environnement (NYSE:VE). The Motley Fool recommends Veolia Environnement.

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