Volvo is doing well again.

Customers take canceled orders and more trucks are needed for increased consumption of goods - and the share dividend will be the largest in Swedish stock market history.

It looked completely different this spring.

At that time, Volvo was forced to close factories and lay off 20,000 employees.

The company received SEK 1.3 billion in redundancy support from Swedish taxpayers.

Thus, a dividend was not allowed, and the shareholders were without the promised dividend last spring of SEK 27 billion.

The support contributes to the profit

Profit for the full year fell, but in the fourth quarter it increased to almost SEK 12 billion, and now Volvo has SEK 75 billion in cash.

The billion support from the taxpayers contributes to the profit and thus to the record dividend to the shareholders.

- The Board proposes a dividend based on our strong financial position.

We believe that share dividends are an important part for the stock market to function.

It benefits not least pension funds, says Volvo's CEO Martin Lundstedt.

The stock market giants that canceled or postponed their dividends this spring have so far proposed dividends totaling SEK 108 billion in the financial statements, SVT's review shows.

In addition, several of them distributed a total of SEK 23 billion at extraordinary general meetings last autumn.

Follows the rules

Volvo's dividend follows the rules for redundancy support because Volvo ended its redundancies early in the autumn.

And more stock market giants are doing the same. 

In SVT's review this spring, eleven of the 30 most traded listed companies had laid off staff.

Eight of the companies will distribute money now, according to the financial statements.

Several waived the support in order to be able to distribute. 

But, for example, Sandvik and Alfa Laval have waived dividends throughout 2020 and are now distributing.

Sandvik, which had 9,000 layoffs, is even making an extra large dividend now.

According to the regulations, the state redundancy support must go to companies with temporary "serious financial problems". 

- The support was important in the uncertain situation this spring.

They save jobs and have worked well, says Volvo's CEO Martin Lundstedt.

Many who have been laid off have been allowed to keep their jobs instead of being notified.

But Volvo has still reduced its workforce by more than 7,000 people by 2020.