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The company announced on Friday evening in Darmstadt that an amount of five cents per share will be proposed to the general meeting. In 2021, 76 cents were still being paid. Analysts had previously expected 74 cents.
With this amount, Software AG is returning to its payout range of 30 to 40 percent of average consolidated net income and free cash flow, the statement said. The proposal also reflects the capital allocation approach aimed at strengthening the company’s long-term profitability and financial position.
In 2021, the company left the dividend unchanged for the third year in a row, despite a drop in earnings. The company has now pledged to remain committed to increasing shareholder returns as free cash flow increases.
Investors initially took the news calmly. Software AG’s share price fell only slightly on the Tradegate trading platform in an initial reaction.
Leverage must be between 2 and 20
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Image credits: Software AG, Nigel Treblin/Getty Images