SAP wants its shareholders to participate in the increased profit of 2020. A dividend increase from 27 cents to 1.85 euros per paper is proposed. The total dividend would be 2.2 billion euros.
With the suggestion of 1.85 euros, SAP is above the analyst estimate of around 1.70 euros. Finance chief Liuka Mucic had already announced an increased dividend. “Despite the special challenges in 2020, we posted a strong result (IFRS) and a record year in cash flow,” he said, according to a statement on Thursday. At SAP, the amount of the dividend plays a subordinate role for investors compared to other corporations. Technology companies are seen as growth stocks that prefer to invest their freely disposable money in their own business.
The proposal would distribute a total of 2.2 billion euros to shareholders (previous year: 1.9). With the proposal, the payout ratio will drop from 55 percent for 2019 to 41 percent. According to its dividend policy, SAP wants to distribute 40 percent or more of its profits on a regular basis.
Source: com! professional by www.com-magazin.de.
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