The Morgan Advanced Materials Board is recommending a final dividend, subject to shareholder approval, of 3.5 pence per share on the Ordinary share capital of the Group, payable on 21 May 2021 to Ordinary shareholders on the register at the close of business on 30 April 2021. The ex-dividend date is 29 April 2021.
Together with the interim dividend of 2.0 pence per share paid on 11 December 2020, this final dividend, if approved by shareholders, brings the total distribution for the year to 5.5 pence per share (2019: 4.0 pence).
A total dividend of 5.5 pence per share represents a dividend cover of adjusted EPS of 3.5 times.
Looking forward, the Board is looking to grow the ordinary dividend as the economic environment and the Group's earnings improve, targeting a dividend cover of around 3 times adjusted EPS on average over the medium term.
This level of cover ensures sufficient resources are available to continue to invest to support the Group's long-term prospects, as well as meet the needs of other stakeholders of the Group, including deficit contributions to the Group's defined benefit pension schemes.