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| SAP Announces $1.4 Billion Dividend, Boosts Payout Ratio |
SAP SE, the German supplier of software that powers tens of thousands of companies’ operations, announced a 1.3 billion euro ($1.4 billion) dividend after cutting a long-term profit target two months ago.
The dividend, equivalent to 1.10 euros per share, would be an increase of 10 percent from a year earlier, the Walldorf, Germany-based company said in a statement Thursday. SAP also changed its payout policy, boosting the portion of profit it returns to shareholders by 5 percentage points to more than 35 percent, it said.
Chief Executive Officer Bill McDermott is grappling with a sea change in the way customers buy SAP’s software -- they’re opting for cloud-computing versions delivered online, which is hurting sales of traditional programs installed on customers’ computers. On Jan. 20, SAP cut its 2017 profit target as a shift to software delivered over the Web hurts margins.
SAP shares traded 0.9 percent higher at 66.10 euros at 4:24 p.m. in Frankfurt.
Chief Financial Officer Luka Mucic said in the statement the higher dividend “is meant as a sustainable rather than a one-time effort.”
Author: Kenneth Wong
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