Walldorf (dpa) - Europe's largest software manufacturer SAP wants its shareholders to participate in the increased profit in the previous year.
The dividend is to be increased by 27 cents to 1.85 euros per share, as the supervisory board and management board proposed to the general meeting on Thursday.
The Walldorf-based company earned 5.28 billion euros on balance last year, 57 percent more than in the previous year, although SAP was struggling with the Corona crisis and had come under pressure in day-to-day business with a slightly falling turnover.
In addition, the profit in 2019 was burdened by high sums for job cuts.
In addition, there were no longer such high expenses for share-based compensation for employees in 2020, because the share came under noticeable pressure, mainly due to the capped medium-term forecasts.
Finance chief Liuka Mucic had already announced an increased dividend.
"Despite the special challenges in 2020, we posted a strong result (IFRS) and a record year in cash flow," he said, according to a statement on Thursday.
At SAP, the amount of the dividend plays a subordinate role for investors compared to other corporations.
Technology companies are seen as growth stocks that prefer to invest their freely disposable money in their own business.
The proposal would distribute a total of 2.2 billion euros to shareholders (previous year: 1.9 billion).
With the proposal, the payout ratio will drop from 55 percent for 2019 to 41 percent.
According to its dividend policy, SAP wants to distribute 40 percent or more of its profits on a regular basis.
© dpa-infocom, dpa: 210225-99-584128 / 2