Dividends and capital returns
The Board has proposed a final dividend of 6.92p which results in a full year dividend of 10.1p, an increase of 1.0% (2014/15: 10.0p). The full year dividend is covered 2.2 times by adjusted earnings (2014/15: 2.1 times). We continue to be comfortable with medium term dividend cover in the range of 2.0 to 2.5 times, a level the Board believes is prudent and consistent with the capital needs of the business.
The final dividend will be paid on 20 June 2016 to shareholders on the register at close of business on 6 May 2016. A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the shares of the Company. The shares will go ex-dividend on 5 May 2016. For those shareholders electing to receive the DRIP the last date for receipt of election is 27 May 2016.
In addition to the annual ordinary dividend, Kingfisher returned £200 million (56.0 million shares) of surplus capital to shareholders via share buyback during FY 2015/16. On 25 January 2016 Kingfisher announced its intention to return around a further £600 million of surplus capital to shareholders over the next three years. This is expected to be via share buyback and since year end, the first £50 million of shares (15.5 million shares) have been repurchased.