Total return and dividend

Total return

Dividend

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Total return

The shareholders´ return can be measured as total return that includes dividend. The measure "total return" consists of reinvested dividends added to the share price value. Total return, for a given period, is defined as share price performance including the value of all reinvested dividends. The dividend is calculated reinvested as from the day the share is traded exclusive the right to the dividend (xd-day). Total return is presented in percent and local currency.

Average annual return

As investors use the term, the return an investment provides over a period of time, expressed as a time-weighted annual percentage. Sources of returns can include interest, dividends, returns of capital, and capital appreciation.

Dividend

  2023 2022 2021 2020 2019
Dividend per Class A and B share, SEK 1.25 0.84 1.20 0.95 0.65
Dividend per Class A and B share as % of earnings per share 34 50 15 44 31
Dividend per Class A and B share as % of equity 3 2 3 3 2
Dividend, SEKm1) 408 274 390 303 207
Dividend yield, Class B share, % 3.5 2.0 2.1 2.5 1.9

1) Dividend refers to ordinary shares.

 

The AGM resolved on a dividend for the 2023 financial year of SEK 1.25 (0.84) per Class A and Class B share. The record date for the dividend is 28 March 2024 and dividends are expected to be paid from Euroclear Sweden on 4 April 2024.

Unadjusted dividend

The dividend's value at the time it was disbursed, i.e., not adjusted for issues, splits or redemption.

 

Adjusted dividend (SEK)

The dividend amount adjusted for share issues and splits. Example: In 2006, dividend of 10 (for a given currency) per share was given by the owners. In 2010, a split that gives shareholders two shares for one old was declare. Dividend of 10 in 2006 is recalculated taking into account that the shareholders now have twice as many shares as compared to the time of the distribution. The adjusted dividend is in this example 5 per share.

Dividend yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price. Dividend yield is represented as a percentage and can be calculated by dividing the dollar value of dividends paid in a given year per share of stock held by the dollar value of one share of stock.

Dividend policy

The Ratos share should be characterized by steadily increasing dividends over time linked to an increasing profit and a stable financial position. The Board of Directors makes the assessment that with a dividend share of 30–50 percentage of profit after tax attributable to the parent company's owners, these conditions are safeguarded.

Share price

The share price is a reflection of the trading in company´s share price quoted on the relevant stock exchange.