Proposed ordinary dividend of SEK 5.00 per share and an extra dividend of SEK 5.00 per share

For the full year 2018, the Board proposes an ordinary dividend of SEK 5.00 per share, compared to SEK 4.25 per share the preceding year. In addition, the Board proposes an extra dividend of SEK 5.00 share for 2018.

Proposed time schedule by the Board of Directors with regards to the dividend:

Annual General Meeting 2019 – Wednesday 3 April 2019
First date for trade excluding the right to dividend  – Thursday 4 April 2019
Record date – Friday 5 April 2019
Preliminary distribution date of dividend – Wednesday 10 April 2019

The time schedule is conditional to that the AGM decides in accordance to the Board’s proposal.

Financial strategy - balancing good returns and financial stability.

The purpose of Volvo’s long-term financial strategy is to ensure the best use of Group resources in providing shareholders with a favorable return and offering creditors financial stability.

A long-term competitive market position requires availability of capital to implement investments.

Volvo's goal is a strong and stable financial position

The financial strategy ensures that the Group’s capital is used in the best possible manner by:

• balancing shareholders’ expectations on favorable returns with creditors’ demands for financial stability
• strong and stable credit ratings
• diversified access to financing from the capital markets
• margin in the balance sheet to cope with a strong decline in the economy
• financing at competitive conditions to customers.

The capital structure target is set to a net financial debt, excluding provisions for post-employment benefits, for the Industrial Operations of a maximum of 35% of shareholders’ equity under normal conditions.

Volvo carefully monitors the trend of financial key ratios to confirm that the financial position is in line with the Group’s policy. The financial key ratios include order intake as well as operational and financial development.

Volvo strives for strong, stable credit ratings

The Volvo Group has continual meetings with the credit rating agencies Moody’s and Standard & Poor’s (S&P) to update them on the company’s development. These meetings contribute to the credit rating agencies’ ability to assess the Group’s future ability to repay loans. A high long-term credit rating provides access to additional sources of financing and lower borrowing costs.


Volvo works actively for a good balance between short and long-term loans, as well as borrowing preparedness in the form of credit facilities, to satisfy the Volvo Group’s long-term financing needs.

Dividend history

Year Cash dividend, SEK Extra Cash dividend, SEK Total Cash dividend, SEK
2018* 5,00 5,00 10,00
2017 4,25    
2016 3,25    
2015 3,00    
2014 3,00    
2013 3,00    
2012 3,00    
2011 3,00    
2010 2,50    
2009 0    
2008 2,00    
2007 5,50    
2006 5,00 5,00 10,00 *
2005 3,35    
2004 2,50    

* Proposed by the Board of Directors