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.