Dividend increase Royal Ahold (AH.AS)

This week Ahold announced an 8.3% increase in its yearly dividend. The dividend is raised from €0.48 to €0.52.This represents a payout ratio of 49%, based on the expected dividend payment on adjusted income from continuing operations. This dividend is up for approval by the General Meeting of Shareholders on April 19, 2016. The dividend pay date is May 4, 2016 to shareholders of record on April 22, 2016 (ex dividend April 21, 2016).

The new dividend of €0.52 per share results in a dividend yield on current price of 2.6 %.

My Vrijheid Fonds consist of 443 shares of Ahold, so my annual dividends will increase by €15.07 (after taxes). My projected annual total amount from my shares of Ahold will be €195.81 after taxes.

On June 24, 2015, Ahold and Delhaize announced their intention to merge, creating an international retailer with more than 6,500 stores. The combined company, Ahold Delhaize, will bring together a portfolio of strong, trusted local brands and more than 375,000 associates serving more than 50 million customers each week in the United States and Europe.

This Week Ahold and Delhaize Group announced the next step in the proposed merger. They have called Extraordinary General Meetings (EGM) for March 14, 2016 at which their respective shareholders will consider and vote on the proposal to approve the companies’ intended merger.

As I wrote in 2015 (merger Ahold and Delhaize), Ahold shareholders will own c. 61% of the combined company’s equity and Delhaize shareholders will own c. 39% of the combined company’s equity. Furthermore Ahold will terminate its ongoing share buyback program. And €1 billion will be returned to Ahold shareholders via a capital return and a reverse stock split prior to completion of the transaction.

The completion of the transaction is expected mid 2016.

Again a nice dividend increase for my Vrijheid Fonds in 2016.



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