Yearly Shareholder Vote on Dividend Hike 2024 - Investors Deciding on 50% Dividend Upsurge
Deutsche Bank has announced its dividend proposals and details for the upcoming Annual General Meeting (AGM), which will be held virtually on May 16, 2024. The AGM agenda, consisting of nine items, was published in the German Federal Gazette (Bundesanzeiger) and on the bank's website (agm.our website) on March 26, 2024.
The proposed dividend for the 2023 financial year stands at €0.45 per share, marking a 50% increase from the 2022 dividend of €0.30 per share. The bank has reaffirmed its guidance to increase dividends, targeting a €1.00 per share dividend for the full year 2025, subject to maintaining a 50% payout ratio and sustainable capital ratios.
Key details of Deutsche Bank’s dividend and distribution goals are as follows:
| Financial Year | Dividend per Share (EUR) | Notes | |----------------|--------------------------|--------------------------------------------------| | 2023 | €0.45 | Dividend proposed for the 2023 fiscal year[1]. | | 2024 | €0.68 | Dividend paid in 2025 in respect of 2024[1]. | | 2025 (guidance)| €1.00 | Subject to 50% payout ratio and capital targets[1].|
In addition to dividends, Deutsche Bank is executing share buybacks, with a €750 million buyback planned for 2025, two-thirds of which has been completed so far.
The bank's long-term distribution strategy includes increasing payouts, aiming to outperform a total shareholder distribution target of €8 billion for 2021–2025 and to distribute excess capital when its Common Equity Tier 1 (CET1) ratio sustainably exceeds 14.0%. This strategy is supported by organic capital generation from net income and improved capital efficiency alongside business growth.
Registered shareholders can participate online via the access-protected shareholder portal if they register by midnight (CEST) on May 10, 2024. Shareholders can exercise their voting rights, speak live during the meeting, and raise questions as provided by law in the virtual AGM 2024. Shareholders have the right to submit statements on the agenda items in text form by no later than midnight (CEST) on Friday, May 10, 2024.
The virtual AGM 2024 will offer extensive opportunities for shareholder questions and contributions. Shareholders can submit questions in advance via the shareholder portal by midnight (CEST) on May 12, 2024. The speeches of the Chairman and CEO will be published on the bank's website at agm.our website by midnight (CEST) on Wednesday, May 8, 2024. The bank's responses to pre-submitted questions will be published on the website at agm.our website no later than midnight (CEST) on May 14, 2024.
The virtual AGM 2024 will be publicly broadcast on the internet, including the general debate and voting results. The Management Board and Supervisory Board have proposed adjusting and simplifying the Management Board compensation system, with the new system having been in use since January 1, 2024.
This pro-growth dividend policy reflects Deutsche Bank’s confidence in its earnings resilience and capital strength amid challenging market conditions.
[1] Source: Deutsche Bank investor presentations.
- Engaging in personal-finance planning, an individual could consider investing in Deutsche Bank due to its pro-growth dividend policy, aiming to outperform a total shareholder distribution target of €8 billion for 2021–2025, and increasing payouts as part of its business strategy.
- In the realm of finance and investing, Deutsche Bank recently announced a 50% increase in its proposed 2023 dividend, marking a significant step towards its goal of distributing excess capital when its Common Equity Tier 1 (CET1) ratio sustainably exceeds 14.0%, as part of its long-term distribution strategy.
