H&M drops dividend reinvestment plan

Hennes & Mauritz AB (H&M) has announced that the company’s board of directors is proposing an unchanged cash dividend of 9.75 Swedish krona (1.21 dollars) per share to the 2018 AGM instead of exploring a possibility of a dividend reinvestment plan (DRIP).

In its full-year report for the 2016/2017 financial year, the company had said that its board of directors was investigating a possibility of offering all shareholders an opportunity to reinvest the dividend received in newly issued H&M shares, in what is known as a dividend reinvestment plan (DRIP). However, H&M on investigation, the reinvestment plan was deemed difficult to implement, both from a technical perspective and because of time constraints.

Now the dividend of 9.75 Swedish krona, the company said, will be paid in two instalments – one in the spring and one in the autumn. The record date proposed for the first payment of 4.90 Swedish krona (0.61 dollar) is May 11, 2018, which will be paid on May 16, 2018 and the second dividend payment of 4.85 Swedish krona (0.60 dollar) will be paid on November 16, 2018.

Picture:H&M website