Topdanmark:
Dividend distribution for 2021
The Board of Directors will recommend to the AGM that distribution of a total dividend of DKK 3,105m takes place, representing DKK 34.5 per share, a pay-out ratio of 145.2 and a dividend yield of 9.4. The total dividend is made up of an ordinary dividend of DKK 2,115m from this year’s profit of DKK 2,138m, representing DKK 23.5 per share and a pay-out ratio of 98.9, as well as an extra dividend of DKK 990m, representing DKK 11.0 per share.
Subject to the approval from the AGM, the distribution of dividend will take place immediately after the AGM on 24 March 2022.
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Higher dividend distribution than expected: 34,5 dkk per share And the share as is down on forward guidance. This is ‘always’ the case. Topdanmark always guides conservatively to be then able to do a positive update during the year.
Edit 1: to prove my point on conservative guidance (even if 2021 proves to be a special year):
CEO words: 2021 was a very satisfactory year for Topdanmark.
We delivered record-strong financial results with a
reported net profit of DKK 2,138m or DKK 1,978m
before run-off, significantly higher than our
original expectation at the beginning of 2021 of
DKK 1,000-1,100m before run-off.
Edit 2: even with the extra dividend of 11 dkk per share, the solvency ratio is still 204 % (down from 243 %). They also state that if no dividend would have been paid this year the solvency ratio would have been 293 %
Edit 3: I am listening to the conference call and the so called Arne tax (populist tax based on the idea of that certain people in denmark should get early retirement) will increase the tax burden by 4% from 2023 or 2024. That is perhaps also a motivator for paying out extra dividends.