7.1.2 Share and dividend performance
Dividend policy
The Group’s dividend policy is aimed at securing long-term shareholder loyalty through a regular increase in the dividend, a dividend payout ratio of around 50% of underlying net profit, and a dividend premium for shareholders who have held their shares in registered form for a continuous period of at least four years. Below is a chart showing the dividend and pay-out ratio (Dividend per share/Underlying Earnings per share) over the last 10 years.
This graph shows the dividend policy
Dividend (in euros)
- 2011: €1.46
- 2012: €1.59
- 2013: €1.62
- 2014: €1.80
- 2015: €2.20
- 2016: €2.40
- 2017: €2.75
- 2018: €2.75
- 2019: €2.90
- 2020: €0
- 2021: €2.00
- 2022: €2.40
Underlying payout ratio (%)
- 2011: 49%
- 2012: 46%
- 2013: 56%
- 2014: 56%
- 2015: 48%
- 2016: 57%
- 2017: 57%
- 2018: 63%
- 2019: 64%
- 2020 : 0%
- 2021: 84%
- 2022: 50%
Note: In Fiscal 2021 the dividend was 2 euros, including a recurring part of 1.20 euro, reflecting the return to dividend policy of a pay-out ratio of 50% of Underlying net profit, plus an exceptional non-recurring part of 0.80 euro reflecting the distribution of the cash related to the disposals program of about 120 million euros.
This year, the Board has decided to propose a dividend of 2.40 euros, up 20% on the preceding year and a pay-out of 50% of underlying net profit. For those shareholders who have held their shares in registered form for at least four years consecutively, the dividend premium will amount to 0.24 euro per share, for up to 0.5% of the shares of the Company. During the Covid-19 crisis, the dividend was impacted by the very significant decline in Group net profit. For Fiscal 2020, given the severity of the downturn in activity; the uncertainty as to the timing of recovery, and in solidarity with the teams, the Board decided not to propose a dividend distribution at all. In Fiscal 2021, the dividend was set at 2.00 euros, with a recurring element of 1,20 euro, representing an underlying pay-out ratio of 50%, and a non-recurring element reflecting the return to shareholders of the proceeds of the portfolio management program.