The Essity share
Essity shares are quoted and traded on Nasdaq Stockholm. Essity’s market capitalization was SEK 212bn at December 31, 2019.
Share price performance in 2019
In 2019, the price of Essity’s B share rose 39%. During the same period, the OMX Stockholm 30 Index rose 26% and MSCI Household Products Index rose 22%. The closing price of Essity’s B share at year-end was SEK 301.80. The highest closing price for Essity’s B share during the year was SEK 307.20, which was noted on September 4. The lowest closing price was SEK 217.10 on January 7.
The total shareholder return for Essity’s B share for the year was 42%. The total shareholder return for the OMX Stockholm 30 Index was 31% and for MSCI Household Products Index 25%.
Dividend and dividend policy
Essity aims to provide long-term stable and rising dividends to its shareholders. When cash flow from current operations exceeds what the company can invest in profitable expansion over the long term, and under the condition that the capital structure target is met, the surplus shall be distributed to the shareholders.
The Board of Directors proposes an increase in the dividend of 9% to SEK 6.25 (5.75) per share for the 2019 fiscal year. The 2019 dividend represents a dividend yield of 2.1%, based on Essity’s share price at the end of the year.
On Nasdaq Stockholm, Essity is included in the OMX Stockholm 30 Index, OMX Nordic 40 Index and in the Personal & Household Goods sector within Consumer Goods. In addition to indexes directly linked to Nasdaq Stockholm, Essity is included in other indexes, such as the FTSE Eurofirst Index and FTSE All World Index. Within MSCI, Essity is included in Household Products Index within Consumer Staples. Essity is also represented in sustainability indexes such as the FTSE4Good and has the highest MSCI ESG rating of AAA.
43% of the share capital is owned by investors registered in Sweden and 57% by foreign investors. The US and the UK account for the highest percentage of shareholders registered outside Sweden.
The beta coefficient for Essity’s B share was 0.35 in 2019. A beta coefficient of less than 1 indicates that the share is less sensitive to market fluctuations than the average.
In 2019, the volume of Essity shares traded on Nasdaq Stockholm was about 362 million, corresponding to a value of approximately SEK 100bn. Average daily trading for Essity on Nasdaq Stockholm amounted to approximately 1.4 million shares, corresponding to a value of approximately SEK 400m.
Earnings per share, 2019
per share, 20191)