Dividends

AS Tallinna Vesi has defined the Company’s dividend policy to provide investors with increased future clarity. According to the policy, Tallinna Vesi aims to distribute 50%-80% of the annual profit as dividends. Dividend payments shall be assessed annually, considering ASTV’s earnings, investment needs, liquidity position and long-term financial objectives.

Dividend pay-out in 2021

The Supervisory Council of AS Tallinna Vesi proposed a dividend pay-out of 0.65 euros per share. The proposal has to be approved at the annual general meeting to be held on 3 June 2021.

According to the amendment to the Income Tax Act, effective since 1 January 2018, at a company level, an income tax rate of 14% (14/86 of the net amount) shall be charged on the share of dividends, which is lower than or equal to the previous three calendar years average of the Company’s profit distributions taxed in Estonia. An income tax rate of 20% (20/80 of the net amount) shall be charged on the remainder of the dividend pay-out.

Consequently, a lower income tax rate (14%) is applicable to the 2021 dividend pay-out. According to the clauses 41 (7²) and 43 (1) (1¹) of the Income Tax Act, the Company is required to withhold 7% of income tax on the dividends paid to natural persons provided that such dividend has been taxed with a tax rate of 14%. This also applies to a shareholder who is a natural person and keeps the shares on an investment account.

The shareholders who are natural persons shall receive the dividend as a net amount, from which the income tax has already been withheld in full.

	NET PROFIT		DIVIDEND PAID PER A-SHARE		DIVIDEND PAY-OUT RATIO(%)		DIVIDEND PER A-SHARE
	million EEK	thousand EUR	million EEK	thousand EUR			EEK	EUR
2002	146	9 343	45	2 876	31		2.25	0.14
2003	105	6 681	75	4 793	72		3.75	0.24
2004	173	11 054	112	7 158	65		5.6	0.36
2005	174	11 143	157	10 034	90		7.85	0.50
2006	248	15 853	196	12 527	79		9.8	0.63
2007	278	17 757	249	15 914	90		12.45	0.80
2008	296	18 916	230	14 700	78		11.5	0.73
2009	340	21 726	500	31 956	147		25	1.60
2010	257	16 405	250	16 000	97.5		12.5	0.80
2011		21 513		16 800	78.1			0.84
2012		22 599		17 400	77.0			0.87
2013		19 936		18 000	90.3			0.90
2014		17 943		18 000	100.3			0.90
2015		19 858		18 000	90.6			0.90
2016		18 390		10 800	58.7			0.54
2017		7 211		7 201	99.9			0.36
2018		24 150		7 201	29.8%			0.36
2019		27 760		15 000	54.0%			0.75
2020		16 732		20 000	120.0%			1.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Dividend pay-out ratio = (paid dividends/net profit)*100

The share capital of the Company consists of 20 million A shares and 1 preference B share.

On 8 April 2021, the Company acquired one B-share with a nominal value of 60 euros from the City of Tallinn, no dividends will be paid per B share or the Company’s own share.

Dividends for the reporting period are paid out on the year following the reporting period.