Dividend and cash return policy
Our dividend policy is inherently linked to our strategy and reflects the cyclical environment in which we operate. Our policy consists of a regular maintenance dividend, which is currently set at 2% of net assets, the top end of our range of 1-2%, in addition to a return of surplus cash to shareholders at the appropriate times in the cycle. A key part of the rationale of our approach to running the business in a sustainable way is to give investors a significant, consistent and reliable dividend stream.
Our 2015 final maintenance dividend of 1.18 pence per share is to be paid on 20 May 2016 to shareholders on the register at the close of business on 8 April 2016 (2014 final dividend: 1.32 pence per share), subject to shareholder approval at the 2016 AGM. In combination with the interim dividend of 0.49 pence per share (2014 interim dividend: 0.24 pence per share), this gives a total maintenance dividend for the year of 1.67 pence per share (2014 total maintenance dividend: 1.56 pence per share).
On 3 July 2015, we returned £249.6 million to shareholders, by way of a cash return, equating to 7.68 pence per ordinary share. As previously announced on 29 July 2015, we will return c.£300 million on 15 July 2016, equating to 9.20 pence per ordinary share, to shareholders on the register at the close of business on 3 June 2016, subject to shareholder approval at the 2016 AGM.
The Board expects surplus cash returns to continue to form a significant proportion of the annual total return to shareholders. These cash returns will be set on an annual basis, in line with the cash generation of the business.
