Maersk’s capital allocation and dividend policy
Our first priority is to be able to weather the volatility of our Ocean business in the coming years without compromising the financial stability and growth of Maersk, which implies keeping a strong liquidity position.
Secondly, we continue to invest in our fleet renewal programme in Ocean in line with our ambition to reach net zero green greenhouse gas emissions by 2040, while pursuing organic growth opportunities in Logistics & Services and Terminals. For 2023-2024, the expectation for the accumulated Capex is at USD 8.0-9.0bn, while for 2024-2025, the expectation is at 10.0-11.0bn.
Finally, Maersk is committed to shareholder returns starting with the dividend policy of distributing our profits annually and to return any excess cash through share buy-back programmes.
Strong commitment to the dividend policy supporting attractive shareholder returns
Maersk’s dividend policy is an annual pay-out ratio of 30-50% of underlying net result adjusted for gains, impairments and restructurings. The dividend policy was introduced in 2019.
The annual payout ratio and distribution will be decided based on an evaluation of the outlook, cash flow, capital expenditures for organic Capex and merger & acquisition transactions, and the target of having an investment grade rating.
Additionally, Maersk will return excess cash to shareholders through share buy-back programmes.
Dividend track record since 2019
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Dividend yield | 1.6% | 2.4% | 10.7% | 27.5% | 4.2% |
| Total shareholder return | 36% | 45% | 77% | -26% | 6% |
| 1) Yield is based on closing price 31 December in the relevant year | |||||
Distribution to shareholders since 2019
Since 2019, Maersk has returned around 200bn Danish kroner or 29bn USD in dividends and share buy-backs to its shareholders.
Note: Dividend and share buy back in the year paid/repurchased. SBB excluding long-term incentive programme shares. Based on dividends and purchase of treasury shares.
