As announced on 8 November 2022, the Board recognises the importance of sustainable dividends for shareholders and will continue to prioritise value creation from a strong return on capital. Following a review and reflecting the increased uncertainty in the political and macro-economic environment, alongside increased corporation tax and the residential property developer tax, the Board has decided to conclude the previous capital return programme, which was introduced in 2012. The Board will instead implement a new Capital Allocation Policy.
Capital Allocation Policy
The Capital Allocation Policy has the following key principles:
- Invest in the long-term performance of Persimmon by ensuring the business retains sufficient capital to continue our disciplined and appropriately timed approach to land acquisition.
- Operate prudently, with low balance sheet risk, and a continued focus on achieving a superior return on capital.
- Ordinary dividends will be set at a level that is well covered by post-tax profits, thereby balancing capital retained for investment in the business with those dividends.
- Any excess capital will be distributed to shareholders from time to time, through a share buyback or special dividend.
The 2022 dividend per share will be announced in March 2023, alongside the Group’s full year 2022 results, and paid in Q2 2023. Guided by the new policy, when proposing the 2022 dividend the Board will carefully consider the business’ performance, financial position and outlook at that time. There will be no special distribution for 2022.
For the 2023 financial year and onwards, dividends will be paid out semi-annually, with an interim dividend for 2023 expected to be paid in the second half of 2023.
Details of returns previously paid to shareholders under the now concluded capital return programme can be found below.
Capital Return Programme (2012 – 2022)
Returns previously paid to shareholders:
|Payment date||Amount per share||Ex-dividend date||Record date for dividend|
|8 July 2022||110p||16 June 2022||17 June 2022|
|1 April 2022||125p||10 March 2022||11 March 2022|
|13 August 2021||110p||22 July 2021||23 July 2021|
|26 March 2021||125p||11 March 2021||12 March 2021|
|14 December 2020||70p||26 November 2020||27 November 2020|
|14 September 2020||40p||27 August 2020||28 August 2020|
|6 July 2020 – postponed and paid in September 2020 and December 2020*||N/A||N/A||N/A|
|2 April 2020 - cancelled*||N/A||N/A||N/A|
|2 July 2019||110p||13 June 2019||14 June 2019|
|29 March 2019||125p||7 March 2019||8 March 2019|
|2 July 2018||110p||14 June 2018||15 June 2018|
|29 March 2018||125p||8 March 2018||9 March 2018|
|3 July 2017||110p||15 June 2017||16 June 2017|
|31 March 2017||25p||9 March 2017||10 March 2017|
|1 April 2016||110p||3 March 2016||4 March 2016|
|2 April 2015▲||95p||N/A||19 March 2015|
|4 July 2014▲||70p||N/A||4 June 2014|
|28 June 2013▲||75p||N/A||19 April 2013|
▲ Paid by a B/C Share Issue. The payment date is the redemption date for B Shares and dividend payment date for C Shares.
* Covid-19 - dividend cancellation and postponement - due to the major social and economic disruption caused by the onset of the Covid-19 pandemic, after careful assessment of the capital needs of the business, the Board: (i) cancelled the 125p per share interim dividend that was scheduled to be paid on 2 April 2020 and (ii) postponed the payment of the final dividend for the 2019 financial year of 110p per share that was scheduled to be paid on 6 July 2020. This payment was subsequently made in two tranches, in September 2020 and December 2020.