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
Dividend information is not adjusted for the 10:1 share split which became effective on May 7, 2021.
At the Annual General Meeting 2021, it was resolved, in accordance with the proposal of the Board of Directors, to pay a dividend of 15.00 SEK per share. The record day for the right to receive a cash dividend was April 15, 2021 and payment through Euroclear Sweden AB was made on April 20, 2021.
| Dividend history | 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 | 15.00 | 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 | 2020 | 2019 | 2018 | 2017 | 2016 | Total |
|---|---|---|---|---|---|---|
| Dividend paid, MSEK | 2,020 | 1,777 | 2 911 | 2 908 | 5 522 | 15,138 |
| Repurchase of own shares, net | 3,099 | 2,989 | 2 512 | 2 590 | 1 249 | 12,439 |
| Total | 5,119 | 4,766 | 5 423 | 5 498 | 6 771 | 27,577 |
