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Royal Ahold Delhaize (AD.AS) changed its Dividend policy

Royal Ahold Delhaize changed its dividend policy.

 

On august 7th, Ahold Delhaize published its second quarter results.

 

If we look at these results, we see that Ahold Delhaize has posted net sales of € 16.3 billion in the second quarter, 1.5% more than in the same quarter last year. The group also saw a 2.3% increase in sales in the US. The online sales in the US increased by 14.4% and, according to Ahold Delhaize, are still on track to grow by more than 20% this year.

 

These are some nice figures. However, looking at the results for the past six months, we still see that profits have fallen by 2.5%. An important reason for the disappointing results are the strikes in the US. 

 

Polliesdividend.com ahold Delhaize, Pollie

 

The integration of Ahold and Delhaize is now fully completed, the synergies were slightly higher and realized earlier than predicted.

 

The free cash flow in Q2 came to € 351 million at Ahold Delhaize. The company expects earnings per share to rise slightly in 2019 compared to 2018.

 

 

Semi-annual Dividend

Till this year Ahold Delhaize has paid an annual dividend. So, the dividend which has been paid in April of this year, was the final dividend of the fiscal year 2018. 

 

As of 2019, Ahold Delhaize commits to semi-annual dividend payments. The interim dividend per share will be announced on the date of the release of the second quarter results and will be equal to 40% of the year-to-date underlying income per share from continuing operations. Ahold Delhaize has the ambition to maintain a sustainable growth of its full year dividend per share.

 

Vrijheid Fonds

For the first half of 2019, Ahold Delhaize will pay an interim dividend of €0.30, based on 40% of first half 2019 underlying income per share from continuing operations. The dividend pay date is August 29, 2019 to shareholders of record on August 12, 2019 (ex-dividend August 9, 2019).

 

My Vrijheid Fonds consist of 439 shares of Ahold Delhaize, so my projected dividends for 2019 will raised by €111.95 ($123) after taxes. My total projected dividends for 2019 will be €366.

 

I didn’t see this dividend policy change coming, so it was a nice surprise for this year. I like this dividend policy change because with the interim dividend I can buy more shares sooner, which will generate more dividends for me. With other words; my snowball will get momentum sooner. It allows me to better take advantage of compounding returns and Euro-cost averaging.

My Vrijheid Fondsis doing well in 2019.

 

What do you think about this dividend policy change of Ahold Delhaize? I like to hear from you!

 

Cheers,

 

Pollie

 

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2 thoughts on “Royal Ahold Delhaize (AD.AS) changed its Dividend policy

  1. Alessio

    Hi Pollie,

    I was also pleasantly surprised by this change. Hopefully they will manage to protect their margins going forward. Today they announced that Bol.com will be rolled out in Wallonia so hopefully additional revenue in Belgium!

    Best,

    1. Polliesdividend Post author

      Hi Adam,

      I also hope that AD will manage to grow their margins. This new announcement of Bol.com makes me positive!
      Cheers,

      Pollie

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