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H&M: abandons plans to offer 'reinvestment' dividend

(CercleFinance.com) - H&M on Tuesday said that its idea of giving shareholders the possibility of reinvesting their dividends in newly issued shares has been dropped, as the plan would have been "difficult to implement.

Consequently, the Swedish group has instead decided to offer shareholders an unchanged dividend of 9.75 Swedish kronor per share, paid in cash, for the financial year 2016/2017.

H&M said it wanted to investigate the possibility of offering shareholders an opportunity to reinvest the dividend in shares, in what is known as a "dividend reinvestment plan" (DRIP).

However, the investigation has shown that the reinvestment plan would be difficult to implement, both from a technical viewpoint and because of time constraints, the company said.

Investors were reacting positively to the news, with the H&M share up 1.1% at 142.1 Swedish kronor in Stockholm this morning.

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