March 2026: Scandinavian Tobacco Group Reduces Annual Dividend to kr.4.50
Scandinavian Tobacco Group proposes an ordinary dividend of kr.4.50 per share for 2026, corresponding to a 42% payout ratio. Compared with the kr.8.50 dividend paid in 2025, this represents a 47% reduction and the lowest dividend since the company’s IPO. The change reflects a key shift introduced under the Focus 2030 strategy, moving away from a commitment to annual dividend growth toward a payout-ratio-based dividend policy. Beginning in 2026, dividends will be determined within a 40-60% payout range, providing greater financial flexibility as the company invests in strategic priorities while maintaining a commitment to shareholder returns.
As leverage declines toward 2.5x, the company expects to regain capacity for share buybacks, a form of capital return frequently requested by investors. Based on the latest closing price, the stock offers a dividend yield of 4.5% and trades at 10x FY26 EPS guidance (midpoint: kr.10).
