At the current share price, dividend yield is 6%. Note that the ex-date is 18 June 2019.
Ericsson Nikola Tesla held the Annual General Meeting in which the shareholders approved the HRK 70.6 dividend per share, which will be paid out of retained earnings from years 2017 and 2018.
The approved dividend represents a significant improvement from HRK 32.5 DPS paid out last year, however one should also note that the financial result in 2017 was significantly lower than in 2018. To read more about Ericsson NT’s FY 2018 results click here.
At the current share price, dividend yield is 6%. Note that the ex-date is 18 June 2019.
In the past, Ericsson NT’s dividend pay-out regularly surpassed the company’s net income due to the high levels of retained earnings and reserves that the company accumulated over the years. During the years preceding 2018, the company was paying out a regular flat dividend in the amount of HRK 20 which was then increased by an additional dividend.
For instance, in 2014 (the year when the highest dividend in the observed period was recorded) the company increased the regular dividend of HRK 20 by an additional dividend of HRK 300. The total dividend of HRK 320 for that year was paid out of the surplus recorded in the company’s legal reserves and retained earnings from four previous years (2004, 2010, 2011 and 2012).
Dividend per Share (2013 – 2019) (HRK)
Dividend Yield (2013 – 2019) (%)
When observing the share price performance since 2013, one can observe that the share price observed a decrease of 16%. However, when observing the total return (the return an investor would have made had he invested all the dividends back into the shares) in the same period, one can notice an increase of 55.8%. Consequently, we can conclude that the dividend payments were the sole driver of the growth in the mentioned period.
Share Price Performance vs Total Return (2013 – 2019)
