- Broader basis for dividend assessment
RWE will determine its dividend payment based on more criteria than before, starting in fiscal 2015. The new dividend policy will no longer be based solely on recurrent net income, of which 40% to 50% have been paid out so far. In the future, the dividend proposal will be oriented towards RWE’s operating cash flows, indebtedness and earnings position. Opportunities to make growth investments will also be considered. The Executive Board and the Supervisory Board will continue to attach high importance to the dividend. Sustainability, continuity and reasonable judgment are major criteria. This is to be done justice by taking the dividend payment of the preceding year into account among other things when deciding on the dividend proposal. However, this will not go hand in hand with the determination of a minimum dividend.
“By broadening the orientation of our dividend policy, we believe we will be better equipped for future opportunities and challenges in the energy sector,” says Peter Terium, Chief Executive Officer of RWE AG. “The new basis for calculating the dividend reflects our company’s whole economic situation more than in the past.”
As before, the principle adopted by RWE is that the dividend must be earned sustainably. Within this framework and depending on the situation it faces, the company intends to make use of the flexibility resulting from the development of its financial and earnings position and use the funds to reduce net debt, finance attractive growth projects or increase the dividend payment.
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