Pay-out ratio plummets despite soaring profits

Since 2003, large, non-financial companies with a Dutch parent company have paid out less dividend to their shareholders. In 2003, these companies achieved a total profit of over 20 billion euro; nearly 15 billion euro was paid out. The situation changed dramatically in 2005, when total profits amounted to 47 billion euro and only 15.5 billion euro was paid out to shareholders. The pay-out ratio (ratio between net result and paid-out profit) dropped in this period from 74 percent to 34.6 percent.

Dividend payments by large non-financial companies