Monte dei Paschi di Siena: Dividend Yield Is Almost 12%, But Beware Of Risks

  • BMDPF has transformed into a more solid, diversified bank with strong capital ratios and reduced government ownership, but its troubled past still weighs on sentiment. The recent triple-digit rally brings BMDPF closer to fair value; further outsized gains are unlikely, but a collapse also seems improbable given current fundamentals. A 12% dividend yield appears attractive but is unreliable—BMDPF has no consistent dividend policy and payouts are highly cyclical and unpredictable.