XTB, a publicly-traded broker, has recommended a historically high dividend payout, with each share potentially receiving over PLN 590 million ($146 million).
This decision marks a significant portion of profit distribution among shareholders, as stated by the Management Board.
Following this announcement, XTB’s shares experienced an upsurge on the Warsaw Stock Exchange (WSE), reaching historical highs.
The company’s latest report reveals that 75% of its net profit for 2023, totaling PLN 787 million ($195 million), will be allocated for dividends.
The remainder, PLN 197 million ($49 million), is slated to reinforce the company’s reserve capital.
“The Management Board of XTB proposes a dividend record date of 5 June 2024 and a dividend payment date of 20 June 2024,” reads the official statement.
This translates to a dividend payout of PLN 5.02 ($1.24) per share, yielding 7.2%.
Despite a notable increase in share price on the WSE, this yield is marginally lower compared to the previous year.
XTB’s shares exhibited remarkable growth of nearly 22% last year and have already surged by over 60% this year.
The announcement of dividend payment further bolstered investor confidence, leading to another surge in share value, briefly touching nearly 2% and setting a new historical high at PLN 62.30.
Notably, this positive momentum extends beyond XTB alone.
Plus500 shares on the LSE have surged by 30% since the year’s commencement, also testing historical highs at around 2200 pence per share.
Apart from net profit, investor confidence in XTB is buoyed by continuous client base expansion and ambitious plans for product diversification and geographical reach.
XTB boasts over one million clients, a figure that has doubled over the past three years.
The company has introduced numerous new products, including passive trading tools and a social trading platform in 2024, with plans to venture into bond trading soon.
XTB’s ambitions extend to the British market, eyeing a share in the £400 billion Individual Savings Accounts industry.
Additionally, the acquisition of a broker in Indonesia signifies the company’s aspirations to establish a foothold in Asia.