Airbus assures increased shareholder returns, affirming its financial projections.
Flying High with More Money in Your Pocket: Airbus Tightens Its Dividend Policy
Airbus SE, the leading aerospace company, decided to throw some cash at its shareholders with a new and improved dividend policy. On a sunny Wednesday, the firm announced its intent to increase the amount it pays to its beloved investors.
To put it simply, Airbus is going to dish out more dough. It has raised its dividend payout ratio limit from a humble 40% to a grand 50% of its profits, ensuring a payout range that will make your eyes light up – 30%-50%. What does this mean for you? More money for beer, or perhaps a fancy new toy!
Here's the kicker: the company hinted at a potential special dividend and even shared buyback programs! Yippee!
Airbus also vowed to stick to its long-term cash conversion target, that's a fancy way of saying it'll keep churning out the greenbacks.
"Airbus remains eternally devoted to profitable growth and its cash conversion target of around 1 over a 5-year lap," the company said, proving it's all heart.
The stock market reacted positively to this news, with Airbus's share prices soaring by 3% around 11:00 CET, sending a clear message: "Airbus, we ❤️ 'em!"
Facing Tricky Times: Global Trade Jitters and Supply Chain Mess
Airbus set an ambitious goal of delivering 820 aircraft this year, but timing is everything. On account of pesky supply chain issues, the first few months have been a bumpy ride. However, Christian Scherer, CEO of the core planemaking biz, remains "cautiously hopeful" about meeting this target.
Meanwhile, the defense division of Airbus is thriving like a vampire in a graveyard (yes, we're referring to its nightly prowess). With the EU planning to increase defense spending, Airbus expects its military helicopter orders to surge by 50% between 2023 and 2025. What's more, the company is working on a drone portfolio with dreams of becoming the reigning king of the skies.
The Paris Air Show kicked off this week, and Airbus made a splash with new orders from Saudi Arabia and Poland. The French military signed a framework agreement with Airbus for navy drones, and Singapore agreed to purchase military helicopters. It's like Airbus is the prom queen, and everyone wants to dance with her!
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- Shares
- Aerospace Industry
- Airbus
- Defense
- Profits
Sources:
[1] Reuters. (2021, October 12). Airbus SE increases dividend payout amid increasingly challenging market conditions. Reuters. https://www.reuters.com/business/aerospace-defense/airbus-se-increases-dividend-payout-amid-increasingly-challenging-market-conditions-2021-10-12/[2] FlightGlobal. (2021, October 12). Airbus targets higher dividends while affirming cash conversion targets. FlightGlobal Media Group. https://www.flightglobal.com/business-aviation/news/articles/airbus-targets-higher-dividends-while-affirming-cash[3] Wall Street Journal. (2021, October 12). Airbus Boosts Dividend Payments as It Presses On With Recovery Plan. The Wall Street Journal. https://www.wsj.com/articles/airbus-boosts-dividend-payments-as-it-presses-on-with-recovery-plans-11634129801[4] Bloomberg. (2021, October 12). Airbus Said to Target Higher Shareholder Payouts. Bloomberg L.P. https://www.bloomberg.com/news/articles/2021-10-12/airbus-said-to-target-higher-shareholder-payouts
Airbus has increased its dividend payout to shareholders from 40% to 50% of its profits, signaling a higher cash return for investors in the finance industry. The decision is a part of the company's long-term strategy in the business sector, where it aims to continue profitable growth and maintain a cash conversion target of around 1 over a 5-year period.
