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TUI AG To Pay Lower Dividend From FY20 Onwards; Stock Dips

Shares of TUI AG (TUIFF.PK) were losing around 3 percent in German trading after the tour operator Wednesday said that, as part of its revised capital allocation framework, it has decided to pay lower dividend from fiscal year 2020 onwards.

The company's new dividend policy will be applied for the first time for fiscal year 2020, i.e. for dividend payments from 2021 onwards.

For fiscal 2019, the company will submit a dividend proposal to the Annual General Meeting scheduled for February 11, 2020 of 0.54 euro per share.

From the year 2020 onwards, the company's dividend policy will be a core dividend payout of 30 - 40% of its Underlying EAT with a dividend floor or minimum payout of 0.35 euro per share.

The company said, "While the new dividend policy is expected to result in lower payouts, the dividend floor guarantees shareholders a minimum payout irrespective of the market environment of the tourism industry and subsequent impacts on Underlying EAT."

In Germany, TUI shares were trading at 10.92 euros, down 2.54 percent.

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