SAP Proposes Increased Dividend for Shareholders
The Supervisory Board and Executive Board of SAP SE (NYSE: SAP) have made a significant proposal regarding shareholder returns. They recommend an increase in the dividend to €2.35 per share for the fiscal year 2024, representing a 6.8% rise from the previous year's €2.20. This decision underscores SAP's dedication to rewarding its shareholders based on the company's solid financial performance.
Details of the Proposed Dividend
This proposed dividend amounts to approximately €2.741 billion based on the number of treasury shares at the time of the Annual General Meeting of Shareholders. This total indicates a pay-out ratio of 51.9%, which is an increase from the 43.0% ratio from the year before. Such actions are aimed at providing meaningful returns to investors who trust and invest in SAP.
The Rationale Behind the Increase
SAP emphasizes its belief that shareholders should receive a fair share of the profits generated in the past fiscal year. The company's policy is to allocate a dividend of at least 40% of its non-IFRS profit after tax from continuing operations. This policy reflects SAP's commitment to maintaining a balance between reinvesting in future growth and returning value to its shareholders.
Important Dates for Dividend Payment
Shareholders should mark their calendars for the relevant dates related to the proposed dividend payment:
- Record date for dividend payments: May 13, 2025
- Ex-dividend date: May 14, 2025
- Payment date: May 16, 2025
Impact on ADR Holders
For those holding SAP ADRs (American Depositary Receipts), it is essential to understand that one SAP ADR represents one share of SAP SE. The dividend amount received by ADR holders will depend on the euro/US dollar exchange rates. SAP pays dividends in euros, meaning fluctuations in exchange rates may impact the dollar amounts received by holders of SAP ADRs. The bank managing the ADRs will convert the euro dividends into US dollars as quickly as possible following the payment date.
About SAP
As a leader in enterprise applications and business AI, SAP has established a strong reputation over the past 50 years. Companies worldwide rely on SAP for comprehensive solutions that span various essential operations, including finance, procurement, human resources, supply chain management, and customer experience. Their innovative approach helps organizations thrive in a competitive landscape.
Supporting Customers
SAP remains committed to providing valuable support to its customers. The Global Customer Center can be reached at +49 180 534-34-24, with a dedicated line for clients in the United States at 1 (800) 872-1SAP (1-800-872-1727).
Frequently Asked Questions
What is the proposed dividend amount for SAP shareholders?
The proposed dividend is €2.35 per share for the fiscal year 2024.
When is the payment date for the dividend?
The payment date for the dividend is scheduled for May 16, 2025.
How does the dividend increase compare to last year’s?
This reflects an increase of €0.15 or 6.8% from the previous dividend of €2.20.
What should ADR holders be aware of regarding the dividend?
ADR holders should note that the final dividend amount will be affected by euro/US dollar exchange rates.
What percentage of profit does SAP typically distribute as dividends?
SAP’s policy is to distribute at least 40% of its non-IFRS profit after tax as dividends.
