Corporate | 10 March 2016 14:46
Software AG increases dividend by 10 percent
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DGAP-News: Software AG / Key word(s): Dividend
Software AG increases dividend by 10 percent Darmstadt, Germany, March 10, 2016 – Software AG’s (FRA: SOW) Executive Board and Supervisory Board will propose to the Annual General Meeting on May 31, 2016 a dividend payment of EUR 0.55 per share (2014: EUR 0.50) for fiscal 2015, an increase of 10 percent. Last fiscal year, Software AG already raised the pay-out ratio corridor to a level of 25 to 33 percent of the averaged net income and free cash flow. This dividend policy, which is intended to be a clear value orientation sign, will be continued in the current year. Compared to previous year, net income increased by 26 percent; free cash flow even grew by 28 percent. On the basis of this operational improvement, the Executive Board and the Supervisory Board will propose to the Annual General Meeting to raise the dividend from EUR 0.50 to EUR 0.55; in addition to the share buyback program executed over the last 12 months. Based on the current 76.2 million shares (2014: 78.9 million) entitled to a dividend, the total payout would increase to around EUR 41.9 million (2014: EUR 39.5 million). With regard to the year-end share price 2015 (Xetra-closing price as of December 30, 2015: EUR 26.42), this proposal is equal to a dividend yield of 2.1 percent. Additionally, Software AG’s shareholders benefited from the share buyback program: from September 08, 2015 until December 04, 2015, Software AG purchased around 2.7 million own shares for a total of approx. EUR 70 million. The shares repurchased by Software GA are not entitled to a dividend. Software AG’s dividend policy is related to the long-term development of the company. The dividend is based on reported net income and free cash flow on one hand, and the company’s necessary financial requirement for further growth on the other. Software AG’s goal for the use of cash flow is not only to invest in growth, but also to share profit with its shareholders through an attractive dividend.
2016-03-10 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English | |
| Company: | Software AG | |
| Uhlandstraße 12 | ||
| 64297 Darmstadt | ||
| Germany | ||
| Phone: | +49 (0)6151 92-1900 | |
| Fax: | +49 (0)6151 92-34 1899 | |
| E-mail: | Investor.Relations@softwareag.com | |
| Internet: | www.softwareag.com | |
| ISIN: | DE0003304002 | |
| WKN: | 330400 | |
| Indices: | TecDAX | |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart; Terminbörse EUREX | |
| End of News | DGAP News Service |