Progressive dividend policy
For more than 30 years, Wolters Kluwer has increased or maintained its annual dividend per share in euros (or euro equivalent). In 2007, the company established a progressive dividend policy and, since 2011, all dividends are paid in cash. In 2015, we introduced an interim dividend payment, aligning cash distributions closer to our seasonal cash flow pattern.
Wolters Kluwer remains committed to a progressive dividend policy, under which we aim to increase the dividend per share in euros each year, independent of currency fluctuations. The pay-out ratio can vary from year to year. Proposed annual increases in the dividend per share take into account our financial performance, market conditions, and our need for financial flexibility. The policy takes into consideration the characteristics of our business, our expectations for future cash flows and our plans for organic investment in innovation and productivity, or for acquisitions. We balance these factors with the objective of maintaining strong balance sheet.
In view of our strategic priorities and expected capital allocation for the coming three years (2019-2021), we are proposing to increase the total dividend per share for financial year 2018 by 15%. We will therefore recommend a final dividend of €0.64 per share which will bring the total dividend to €0.98 per share (2017: €0.85). The 2018 dividend proposal is subject to approval by the Annual General Meeting of Shareholders in April 2019.
We currently intend to maintain the interim distribution at 40% of the prior year total dividend. This would result in a 2019 interim dividend of €0.39.
Dividend dates are provided in our Calendar.
Shareholders can choose to reinvest both interim and final dividends by purchasing additional Wolters Kluwer shares through the Dividend Reinvestment Plan (DRIP) administered by ABN AMRO Bank NV.
Wolters Kluwer Dividend per Share 1996-2018