Adidas AG said its executive board has decided to resume the company’s dividend payments.
Adidas said in a statement that subject to the approval by the supervisory board, the company would propose paying a dividend of €3.00 per dividend-entitled share for the financial year 2020 to Adidas shareholders at its Annual General Meeting (AGM) on May 12, 2021.
The dividend proposal, which reflects the company’s strengthened financial profile and management’s positive outlook for the current year, would result in a total dividend payout of €585 million.
The decision follows a series of financing measures, including obtaining strong investment-grade ratings, issuing bonds worth €1.5 billion and securing a new syndicated loan of €1.5 billion with partner banks, that Adidas had successfully completed throughout the past year.
In April 2020, Adidas suspended dividend payments after securing a syndicated loan comprising of a loan commitment of €2.4 billion from KfW and €600 million from other banks. At the time, the company said it needed to suspend dividend payments for the duration of the facility, which was expected to last until July 2021.
Photo courtesy Adidas