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
The Board of Directors proposes to the Annual General Meeting an increased dividend of SEK 1.86 per share is distributed to the shareholders in two equal payments of SEK 0.93 per share. The record date for the first payment is proposed to be on Friday, April 29, 2022, and for the second payment on Monday, November 14, 2022. If the Meeting resolves in accordance with the proposal, it is estimated that Euroclear Sweden AB will execute the first payment on Wednesday, May 4, 2022, and the second payment on Thursday, 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 |
