Author is bullish on FDJ United (FDJU.PA), a French lottery monopoly trading at a 9.3% dividend yield after a 35% decline, with February 19 earnings as a catalyst.
FDJU.PA — LONG Author is long FDJU.PA, arguing that FDJ United's French lottery monopoly, 30,000+ point-of-sale network, and Kindred acquisition make it a mispriced defensive compounder after a 35% share-price decline. The mechanism is a 9.3% dividend yield backed by management's 75% payout commitment, strong free cash flow, and deleveraging after the €2.5B Kindred deal. The stated catalyst is the February 19 annual results, where dividend confirmation and debt guidance could trigger institutional value buying and a short squeeze with approximately 21 days to cover. Main stated risks are leverage from the Kindred acquisition and a French gambling tax hike, though the author believes predictable cash flow mitigates them.
I see $FDJU as a classic "mispriced" defensive asset. You are buying a government-backed monopoly at a 9.3% yield with an expanding European footprint. At these levels, the downside seems limited by the yield floor, while the upside is supported by its new scale.
This Reddit post, published February 12, 2026, features u/NerfLapras discussing FDJU.PA. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/NerfLapras · Tickers: FDJU.PA