Porsche Proposes 41% Dividend Rise at May Annual Meeting

Ex-Formula One driver Mark Webber with the new Porsche 911. Not surprisingly, he praised the sports car.

The Executive Board and Supervisory Board of Porsche Automobil Holding SE in Stuttgart wants to increase the dividend for the fiscal year 2019 by 41% to €3.11 (prior year: €2.21) per preferred share and €3.104 (prior year: €2.204) per ordinary share. This corresponds to a payout of 952 million (prior year: €676 million), of which €476 million is attributable to the holders of preferred shares.

On 19 May 2020 the annual general meeting in Stuttgart will decide on the proposed dividend if the COVID-19 Pandemic doesn’t prevent it.

Porsche SE’s group result after tax in the fiscal year 2019 rose to  €4.4 billion, an increase of 26.3% compared to the prior year (€3.5 billion). This was significantly influenced by the result from the investment accounted for at equity in Volkswagen AG of  €4.4 billion, after €3.6 billion in the prior year. Net liquidity of Porsche SE Group came to €553 million (€ 864 million) as of the 31 December 2019 reporting date. This decrease is primarily due to the acquisition of ordinary shares in Volkswagen in the first quarter of 2019. (AutoInformed Volkswagen Group Posts 2019 Profit Despite Diesel Charges)

The increase in Porsche SE’s proposed dividend is disproportionately higher than the increase in result. This growth come from the dividend proposal of Volkswagen AG, which increased the payout rate to 24.5%, after 20.4% in the prior year.

Porsche SE will publish its annual report for 2019 on 24 March 2020 on its website (https://www.porsche-se.com). As a precautionary measure, the originally planned annual press and analyst conference is cancelled due to the latest developments.