IVF Hartmann cuts FY 2021 dividend by 24% to CHF 1.90
IVF Hartmann cuts its dividend for the first time in nearly 30 years. After an extra dividend was paid last year to mark its 150th anniversary, the Swiss healthcare company will cut its dividend by 24% in 2022.
IVF Hartmann, a small cap in Europe with a market capitalization of less than CHF 300 million, was known for its excellent dividend history with a payout that has never been reduced for at least 25 years in a row.
Last week, on March 9, IVF Hartmann released results for 2021, called 'geschäftsbericht 2021' in German/Swiss. IVF Hartmann says in the annual report the following (translated from German) about the dividend:
The (IVF Hartmann Holding AG) board of directors proposes the 2022 Annual General Meeting an ordinary dividend of CHF 1.90 per registered share. This is the highest payout ratio in recent years. In the previous year, an ordinary dividend of CHF 2.50 and a dividend of CHF 1.00 per registered share to mark the 150th anniversary were distributed.
This means a big dividend cut from last year when shareholders of IVF Hartmann received a total dividend of CHF 3.50 per share (CHF 1 special and CHF 2.50 regular). The new CHF 1.90 per share dividend is 24% less than the regular dividend for FY 2020.
At a stock price of CHF 117 for IVF Hartmann the dividend yield is 1.6%. The ex-dividend date for the dividend is April 28, 2022 with the net dividend (after Swiss dividend taxes) of CHF 1.235 per share to be paid on May 2, 2022.
Another European company announcing a dividend cut recently is Amadeus IT Group (Spain).
IVF Hartmann Holding AG (IVF) is a company from Switzerland engaged in the field of medical supplies. IVF products include bandages, rheumatism plasters, baby products, feminine hygiene, cotton wool, first aid, diagnostics equipment, X-ray protection clothing, among others. Clients of IVF are hospitals, doctors, surgery centers, care centers, pharmacies, drugstores, wholesalers and corporate medical centers. IVF also offers consulting services, on-site or in classrooms, related to the usage of its products. IVF generates the biggest part of its sales in Switzerland. The company had been paying a steady or higher dividend for decades before the 2022 dividend cut was announced.