8.1.2 Dividend and share 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 5 years.
This graph shows the adjusted dividend and payout ratio for the last 5 years.
Fiscal 2019.
- Ordinary annual dividend: €2.18.
- Underlying payout ratio (Underlying DPS/Underlying EPS): 55%.
Fiscal 2021.
- Ordinary annual dividend: €0.60.
- Exceptional dividend: €0.90.
- Underlying payout ratio (Underlying DPS/Underlying EPS): 51%.
Fiscal 2022.
- Ordinary annual dividend: €1.80.
- Underlying payout ratio (Underlying DPS/Underlying EPS): 50%.
Fiscal 2023.
- Ordinary annual dividend: €2.25.
- Underlying payout ratio (Underlying DPS/Underlying EPS): 50%.
Fiscal 2024.
- Ordinary annual dividend: €2.65.
- Exceptional dividend: €6.24. Underlying payout ratio (Underlying DPS/Underlying EPS): 50%.
Based on published continuing operations for Fiscal 2022, 2023 and 2024. Fiscal 2020 and 2021 has been adjusted for the Pluxee spin-off by the official Euronext ratio by 0.75143403441682
In July 2024, the Board decided to pay a special interim dividend of 6.24 euros to reflect the sale of Sofinsod, in which the 19.6% stake in Bellon SA was held. The shares went ex-dividend on August 27, 2024 and the dividend was paid on August 29, 2024.
In October 2024, the Board proposed the regular annual dividend of 2.65 euros, up +17.8% on the preceding year, representing a pay-out ratio of 50%, in line with the traditional dividend policy.
As a result, if approved at the Annual Shareholders Meeting, the total dividend for the year will be 8.89 euros.
For those shareholders who have held their shares in registered form for at least four years consecutively, the dividend premium will amount to 0.26 euro per share as dividend on the Group’s results, for a number of shares limited to a maximum of 0.5% of Sodexo’s share capital for any one shareholder.