Right after Volkswagen announced final week that it would reduce dividends by 97 % due to the economic fallout of the diesel emissions scandal, there’s a ray of light for those who have shares in the company’s owner.
Porsche Automobil Holding SE, the investment car of Volkswagen AG’s ultra-wealthy owner family members, said it will front the money to permit shareholders a bigger return, according to Bloomberg.
Porsche’s management and supervisory boards will vote on the move, which would see the company’s proposed dividend rise from .21 euro to 1.01 euro per preferred share. The 308 million-euro payout, which is still just half of final year’s, will reportedly be financed from money reserves.
Final week, Volkswagen announced it would set aside 16.two billion euros ($ 18.two billion) to fund the automaker’s settlement plan with U.S. consumers and regulators.
The April 21 deal, which would see more than half a million automobiles purchased back or repaired, came at the same time as earnings figures that showed a four.1 billion euro operating loss for 2015. In 2014, the business posted a 10.85 billion-euro profit.
Simply because of the hit, Volkswagen proposed cutting its dividend to .17 euros per share, down from four.86 euros a year earlier.