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 752 results

Ready for 2020? Get a head start with Nordea Economic Outlook

Economic outlook

Register for the webinar, and receive the Economic Outlook released on 29 January.

Anders Langworth

Looking back at a green year for Nordea’s sustainability

About Nordea Sustainability

We summarize our accomplishments in the sustainability area.

Global Asset Allocation Strategy: Chances good that 2020 will be another good year

Markets and investments

Our investment strategists have published the asset-allocation strategy for January 2020

CEO blog: In delivery mode

About Nordea Frank Vang-Jensen

Our starting point for this year is clear.

Showing 5 of 752 results