Podcast: To pay or not to pay - the question for many companies

Viktor Sonebäck and Johan Trocmé from Nordea’s Thematics/Researach Insights team.
19-11-21 15:02 | Businesses | Markets and investments

Dividends are not only the norm in Europe in terms of how excess capital is paid out to shareholders. Dividends also offer a return that isn’t determined by the share-price development. Furthermore, they provide a signal that the company is financially healthy. Does this mean that excess capital should always be paid out as dividends?

In the new Nordea On Your Mind podcast Johan Trocmé and Viktor Sonebäck discuss the different ways available for companies to handle excess capital. In the US, for example, share buybacks are the most common option. A contributing reason is likely that earnings-per-share is an important KPI in management-equity-incentive programs and fewer shares mean that the profit is split between fewer entities.

Another option to consider is, of course, keeping the capital and using it for investments and expansion.

So which solution is better and why? Do companies that favour one of the solutions perform better than those opting for the other alternatives? Find out what our Research Insights team arrived at by listening to the new podcast To pay or not to pay.

Read more news

Showing 5 of 786 results

Nordea named Best Private Bank in Norway, Sweden and Denmark

About Nordea

Nordea won the awards for Best Private Bank in Norway, Sweden and Denmark when Global Finance named the world’s best private banks 2021

New survey: Treasuries in 2025

Businesses Digital banking

The results of Nordea’s newly released ‘Treasury 2025’ survey show four out of five corporate treasury functions expect to be strongly involved in the strate...

Eric Pedersen

Nordea Asset Management signs letter against construction of coal-fired plant in Vietnam

Sustainability Markets and investments

A consortium of investors has signed a letter to financial institutions and companies involved in the construction of the coal plant Vung Ang 2 in Vietnam.

CEO Frank Vang-Jensen

CEO blog: Strong result and continued improvements

About Nordea

Today we published our financial results for the third quarter

Showing 5 of 786 results