MOEX Supervisory Board recommends 89% of 2019 net profit to be paid in dividends
On 5 March 2020, the Moscow Exchange Supervisory Board recommended that the Annual General Meeting of Shareholders (AGM) approve a dividend for 2019 of RUB 7.93 per share.
The total recommended dividend amounts to RUB 18.1 bln, or 89% of the company's IFRS net profit for 2019.
The Board also recommended that the AGM set the dividend record date as 15 May 2020. The AGM will take place on 28 April 2020.
According to the company’s dividend policy adopted in autumn 2019, MOEX seeks to pay the company’s entire free cash flow out in the form of dividends, subject to capital expenditures necessary to support the business and investment in the company’s future growth, as well as regulatory requirements imposed on MOEX’s subsidiaries such as National Settlement Depository (NSD) and National Clearing Center (NCC). The dividend payout floor was set at 60% of the company's consolidated net profit under IFRS.
Oleg Viyugin, Chairman of the Moscow Exchange Supervisory Board, said:
"Broadening of the product line and the roll-out of new services and offerings laid the groundwork for the Exchange’s strong financial performance in 2019. The Supervisory Board recently adopted a new dividend policy focused on making dividend payments more predictable and consistent. The recommendation to pay 89% of net profit in dividends is in line with the company’s dividend policy, and the payment ratio substantially exceeds the payout floor established by the policy. This is one of the highest payout ratios among Russian issuers, underlining the company’s commitment to strong corporate governance."
More than 63,000 individuals and nearly 1,000 legal entities are shareholders of Moscow Exchange. The company’s free float stands at 63%, one of the highest free floats among Russian corporates.