Annual Report 2023

Group Management Report



Our dividend policy matches our financial strategy. In the interests of all stakeholders, we aim for continuous dividend growth that allows our shareholders to participate appropriately in our business success. The proposed dividend therefore reflects our financial management objectives – in particular, ensuring a solid financial foundation as part of the implementation of our strategy.

The current dividend proposal can be found in the chapter entitled “Volkswagen AG (condensed, in accordance with the German Commercial Code)” of this annual report. The Board of Management and Supervisory Board of Volkswagen AG are proposing a dividend of €9.00 per ordinary share and €9.06 per preferred share for fiscal year 2023. On this basis, the total dividend amounts to €4.5 (4.4) billion. The payout ratio is based on the Group’s earnings after tax attributable to Volkswagen AG shareholders. This amounts to 28.3% for the reporting year and stood at 29.4% for the previous year; the special dividend due to the IPO of Porsche AG is not included in either of these figures. We strive to achieve a payout ratio of at least 30%.


Based on the dividend proposal for the reporting year, the dividend yield on Volkswagen ordinary shares is 7.6 (5.9)%, measured by the closing price on the last trading day in 2023. The dividend yield on preferred shares is 8.1 (7.5)%.


Basic earnings per ordinary share were €31.92 (29.66) in fiscal year 2023. Basic earnings per preferred share were €31.98 (29.72). In accordance with IAS 33, the calculation is based on the weighted average number of ordinary and preferred shares outstanding in the reporting year. Since the number of basic and diluted shares is identical, basic earnings per share correspond to diluted earnings per share.

See also “Earnings per share” in the notes to the 2023 consolidated financial statements for the calculation of earnings per share.

Dividend yield
The dividend yield is the ratio of the dividend for the reporting year to the closing price per share class on the last trading day of the reporting year; it represents the interest rate earned per share. The dividend yield is used in particular for measuring and comparing shares.
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