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 of Directors has determined that the Group will strive to maintain a net debt that does not exceed 3 times EBITA. The actual level of net debt will be assessed against:
- anticipated future profitability and cash flow
- investment and expansion plans
- acquisition opportunities
- development of interest rates and credit markets
The Board of Directors’ long-term goal is to optimize the capital structure of the Group which in the current environment entails maintaining a Standard & Poor’s BBB and a Moody’s Baa2 long-term rating.
Dividend 2022
At the Annual General Meeting of Swedish Match AB (publ) on April 27, it was resolved, in accordance with the proposal of the Board of Directors, to pay a dividend of 1.86 SEK per share distributed to the shareholders in two equal payments of 0.93 SEK per share. The record date for the right to receive a cash dividend for the first payment is April 29, 2022, and payment through Euroclear Sweden AB is expected to be made on May 4, 2022. The record date for the second payment is November 14, 2022, and payment through Euroclear Sweden AB is expected to be made on November 17, 2022.
| Dividend history | 2021 | 2020 | 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 | 1,861) | 1.50 | 1.25 | 1.05 | 1.66 | 1.60 | 2.95 | 0.75 | 0.73 | 0.73 | 0.65 | 0.55 | 0.48 | 0.41 | 0.35 | 0.25 | 0.21 | 0.19 | 0.17 | 0.16 | 0.15 | 0.14 | 0.12 | 0.11 | 0.11 | 0.11 |
1) Board proposal.
| Transfer of capital to Swedish Match shareholders | 2021 | 2020 | 2019 | 2018 | 2017 | Total |
|---|---|---|---|---|---|---|
| Dividend paid, MSEK | 2,369 | 2,020 | 1,777 | 2,911 | 2,908 | 11,985 |
| Repurchase of own shares, net | 3,802 | 3,099 | 2,989 | 2,512 | 2,590 | 14,992 |
| Total | 6,171 | 5,119 | 4,766 | 5,423 | 5,498 | 26,977 |
Totals may be affected by rounding. Dividend proposed for calendar year 2021 to be paid in 2022 is estimated to X,XXX MSEK, based on the number of shares outstanding at the end of 2021.
