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 777 results

Man in parachute

Coronavirus: Plan B

Economic outlook Nordea podcasts

Could the pandemic be resolved by a vaccine or therapy next year, or will we need to accept that it continues to burden the economy?

Men in solar panel field

Sustainable investment – good for your assets and for the planet

Sustainability Markets and investments

Read our new publication on sustainable investment

Nordea’s funds get excellent scores in responsible investment report from the UN

Markets and investments Sustainability

Nordea Asset Management has been awarded outstanding scores by the United Nations-supported Principles of Responsible Investment (PRI).

Slush event in Helsinki

Slush 2020: Nordea hosts virtual speed dates for startups and investors

Digital banking About Nordea

Nordea is a main partner of Slush, the world’s leading startup and tech event. Nordea’s focus is on helping investors and startups find their best matches.

Businesswoman and man reading file in office corridor

Making the right choices for a sustainable future

Sustainability About Nordea

Over the last seven years, Nordea’s procurement team has worked diligently on embedding sustainability in its core processes.

Showing 5 of 777 results