For 2020, the TP ICAP Board is recommending a final dividend per share (DPS) of 2p that equates to £16m. The dividend will be paid on 18 May 2021 (with a record date of 9 April 2021).
This will take the full-year DPS to 6p, (rebased to take into account the bonus element of the rights issue completed in February 2021), an one-off 50% reduction to the prior year, in line with the statement made on 9 October regarding the proposed Liquidnet acquisition.
This reduction will help fund the Liquidnet acquisition and minimise dilution of earnings on a per share basis. For 2021 onwards, they will target a dividend cover of approximately 2x adjusted earnings. The new dividend policy reflects a balanced approach to capital allocation and is expected to allow TP ICAP to drive growth, while allowing dividends to increase in line with adjusted earnings.
