Dividend

DIVIDEND POLICY

Our dividend policy matches our financial strategy. In the interests of all stakeholders, we aim for continuous dividend growth so that our shareholders can participate appropriately with our business success. The proposed dividend therefore reflects our financial management objectives – in particular, ensuring a solid financial foundation as part of the implementation of our strategy.

The current dividend proposal can be found in the chapter entitled “Volkswagen AG (condensed in accordance with the German Commercial Code)” of this annual report. The Board of Management and Supervisory Board of Volkswagen AG are proposing a dividend of €6.50 per ordinary share and €6.56 per preferred share for fiscal year 2019. On this basis, the total dividend amounts to €3.3 (2.4) billion. The payout ratio is based on the Group’s earnings after tax attributable to Volkswagen AG shareholders. This amounts to 24.5% for the reporting period and stood at 20.4% in the previous year. In our Group strategy, we aim to achieve a payout ratio of at least 30%.

DIVIDEND YIELD

Based on the dividend proposal for the reporting period, the dividend yield on Volkswagen ordinary shares is 3.8 (3.5)%, measured by the closing price on the last trading day in 2019. The dividend yield on preferred shares is 3.7 (3.5)%.

EARNINGS PER SHARE

Basic earnings per ordinary share were €26.60 (23.57) in fiscal year 2019. Basic earnings per preferred share were €26.66 (23.63). In accordance with IAS 33, the calculation is based on the weighted average number of ordinary and preferred shares outstanding in the reporting period. Since the number of basic and diluted shares is identical, basic earnings per share correspond to diluted earnings per share.

See also note 11 to the Volkswagen consolidated financial statements for the calculation of earnings per share.