Information and definitions
Shareholder returns can be measured as total return, which includes dividends. The total return measure consists of reinvested dividends added to the share price. Total return, over a given period, is defined as share price performance including the value of all reinvested dividends. The dividend is calculated as being invested from the date on which the share is traded excluding the right to dividend (ex-dividend date). Total return is presented as a percentage in local currency.
As used by investors, the term refers to the return an investment generates over a period of time, expressed as a time-weighted annual percentage. Sources of return may include interest, dividends, return of capital and capital appreciation.
Unadjusted dividend
The original value of the dividend at the time it was paid, i.e. not adjusted for issues, splits or buybacks.
Adjusted dividend (SEK)
The dividend amount adjusted for issues and splits. Example: In 2006, a dividend of 10 (in a given currency) per share was paid to shareholders. In 2010, a split was declared giving shareholders two shares for every one old share. The dividend of 10 in 2006 is recalculated taking into account that shareholders now hold twice as many shares compared to the time of the dividend. The adjusted dividend in this example is 5 per share.
Dividend yield
A key figure showing how much a company pays out in dividends each year relative to its share price. Dividend yield is represented as a percentage and can be calculated by dividing the value of dividends paid in a given year per share by the value of one share.
Dividend policy
The Ratos share shall be characterised by steadily increasing dividends over time, linked to increasing earnings and a stable financial position. The Board of Directors considers that a dividend pay-out ratio of 30–50 percent of profit after tax attributable to owners of the parent satisfies these conditions.
Change in share price
The share price is a reflection of trading in the company's listed price on the relevant stock exchange.