Dividend and financial policy
The dividend policy of the Company is a pay-out ratio of 40 to 60 percent of the earnings per share, subject to adjustments for larger one time items.
The Board has further determined that the financial policy should be that the Group will strive to maintain a net debt that does not exceed 3 times EBITA.
The Board continually reviews the financial position of the Company, and the actual level of net debt will be assessed against anticipated future profitability and cash flow, investment and expansion plans, acquisition opportunities as well as the development of interest rates and credit markets. The Board is committed to maintain an investment grade credit rating.
Proposed dividend 2020
The Board of Directors proposes an increased dividend per share of 12.50 SEK (10.50). The proposed record date for entitlement to receive a cash dividend is April 6, 2020. If the AGM approves the Board’s proposal, the dividend is expected to be paid through Euroclear Sweden AB on April 9, 2020.
| Dividend history | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 | 1996 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend, SEK | 12.50 | 10.50 | 16.60 | 16.00 | 29.50 | 7.50 | 7.30 | 7.30 | 6.50 | 5.50 | 4.75 | 4.10 | 3.50 | 2.50 | 2.10 | 1.90 | 1.70 | 1.60 | 1.45 | 1.35 | 1.22 | 1.08 | 1.05 | 1.05 |
| Transfer of capital to Swedish Match shareholders | 2019 | 2018 | 2017 | 2016 | 2015 | Total |
|---|---|---|---|---|---|---|
| Dividend paid, MSEK | 1,777 | 2 911 | 2 908 | 5 522 | 1 464 | 14,583 |
| Repurchase of own shares, net | 2,989 | 2 512 | 2 590 | 1 249 | 1 854 | 11,194 |
| Total | 4,766 | 5 423 | 5 498 | 6 771 | 3 318 | 25,777 |
