According to our dividend policy, dividend payouts of Henkel AG & Co. KGaA shall, depending on the company’s asset and profit positions as well as its financial requirements, amount to 30 to 40 percent of net income after non-controlling interests and adjusted for exceptional items. We will propose to the Annual General Meeting a stable dividend relative to the previous year of 1.85 euros per preferred share and 1.83 euros per ordinary share for the fiscal year just ended. This equates to a payout ratio of 46.6 percent1, which is above the target range of 30 to 40 percent and reflects the unusual burden on earnings caused in particular by considerably higher commodity prices and logistics costs. This payout is possible thanks not least to the strong financial base and low net indebtedness of the Henkel Group. Thus we are able to maintain dividend continuity for our shareholders.
1 Calculation based on the number of shares qualifying for dividends as of December 31, 2022.
Abbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).Financial Glossary Schließen
Proportion of equity attributable to third parties (non-controlling shareholders, aka minority shareholders) in subsidiaries included within the scope of consolidation. Valued on a proportional net asset basis. A pro-rata portion of the net income of a corporation is due to shareholders owning non-controlling interests.Financial Glossary Schließen
Indicates what percentage of annual net income (adjusted for exceptional items) is paid out in dividends to shareholders, including non-controlling interests.Financial Glossary Schließen
Taxation of dividends
The dividends on both ordinary shares and preferred shares are principally paid net of taxes. Capital gains tax at 25 percent and the solidarity surcharge at 5.5 percent of the capital gains tax amount (total 26.375 percent), including church tax where applicable, have already been deducted (withheld). Dividends are taxed in the case of residents of Germany in accordance with the provisions of German income tax law and German corporation tax law.
The tax withheld covers in full the German income tax payable on relevant private capital gains (and is hence known in German as “Abgeltungssteuer” or flat-rate tax). Irrespective of this, shareholders can apply to have the dividends included with all other capital gains made in the calendar year in their personal income tax declaration where this leads to a lower overall level of income tax payable (known in German as the “Günstigerprüfung” or more favorable tax treatment).
The circumstances of the individual shareholder (e.g. if in possession of a “Nicht-Veranlagungsbescheinigung” (non-assessment certificate) or "Freistellungsauftrag" (exemption order for capital gains)) may allow application for a payment to be made without deduction. The circumstances could furthermore allow an application for repayment of the withheld capital gains tax, the solidarity surcharge and - if applicable - church tax.
In the case of a shareholder residing outside Germany, the withheld capital gains tax and solidarity surcharge may be reduced, depending on the terms of any conventions for the avoidance of double taxation that exist between the Federal Republic of Germany and the country of residence concerned. Shareholders who are residents outside of Germany are recommended to seek professional advice on the tax treatment of dividends.
If more detailed advice is required regarding the tax treatment of dividends in Germany, shareholders should obtain this individually from their local tax office (“Finanzamt”) or seek professional advice from a certified German tax consultant (“Steuerberater”).
Paying agent within the meaning of sec. 48 (1) nr. 4 German Security Trading Act (WpHG) is the Commerzbank AG with its branches.