The Annual General Meeting on May 8 2018, decided according to the board's proposal a dividend of SEK 9.75 per share to be paid for 2017 and that the dividend is to be paid in two instalments during the year – in May and in November.
11 May 2018 was decided as record date for the first dividend payment of SEK 4.90 per share. With this record day, Euroclear Sweden AB is expected to pay the dividend on 16 May 2018. To be guaranteed dividend payment, the H&M shares must have been purchased no later than 8 May 2018. Ex-dividend day is 9 May 2018.
13 November 2018 was decided as record date for the second dividend payment of SEK 4.85 per share. With this record day, Euroclear Sweden AB is expected to pay the dividend on 16 November 2018. To be guaranteed the second dividend payment, the H&M shares must have been purchased no later than 9 November 2018. Ex-dividend day is 12 November 2018.
The board of directors’ intention is to provide shareholders with a continued good return while ensuring that, as in the past, expansion and investments can proceed with a continued strong financial profile and freedom of action. Based on this, the board of directors has agreed a dividend policy stating that the total dividend should exceed 50 percent of profit after tax, yet taking into consideration the capital structure target. The dividend will be paid in two instalments – one in the spring and one in the autumn.
The H&M group advocates a conservative leverage ratio, aiming for a strong capital structure with strong liquidity and financial flexibility. It is essential that, as in the past, expansion and investments can proceed with continued freedom of action.
The capital structure is defined as net debt in relation to EBITDA. Over time, this should not exceed 1.0 x EBITDA. Net debt / EBITDA was 0.0 as of 30 November 2017.