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.
Dividend 2019
The Board of Directors proposes to the Annual General Meeting an increased ordinary dividend, amounting to 10.50 SEK per share (9.20). The proposed dividend is in line with Swedish Match’s ambition to continually grow dividend per share with a payout ratio normally within 40-60 percent of earnings per share, subject to adjustment for larger one-time items. The proposed dividend represents an increase of 14 percent from the prior year’s ordinary dividend, and equals a payout ratio of 51 percent (56) of the earnings per share for the year. The proposed dividend amounts to 1,787 MSEK based on the 170.2 million shares outstanding at the end of the year.
| Dividend history | 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 | 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 | 2018 | 2017 | 2016 | 2015 | 2014 | Total |
|---|---|---|---|---|---|---|
| Dividend paid | 2,911 | 2,908 | 5,522 | 1,464 | 1,453 | 14,259 |
| Repurchase of own shares, net | 2,512 | 2,590 | 1,249 | 1,854 | 836 | 9,042 |
| Total | 5,423 | 5,498 | 6,771 | 3,318 | 2,289 | 23,301 |
