Standard Life Aberdeen (SLA) chairman Sir Douglas Flint has confirmed the company is to go ahead with its final dividend payout, citing its "strong financial position."
The dividend payout is set to be voted on at SLA's next annual general meeting on 12 May and comes at a time when the UK's banking groups, including HSBC and RBS, have been forced to cancel dividends following pressure from the regulator and central bank.
This is Money reported that SLA's decision to continue with the £300m dividend was decided at a board discussion earlier this week and was agreed unanimously by directors.
We are all acutely aware of the impact that the covid-19 pandemic is having on society, and in turn the economy. We are committed to doing the right thing for our employees, our clients and our investors throughout this time in all aspects of our business."
Flint said: "We are all acutely aware of the impact that the covid-19 pandemic is having on society, and in turn the economy. We are committed to doing the right thing for our employees, our clients and our investors throughout this time in all aspects of our business.
"As we outlined at our full-year results just a few weeks ago, our business is in a strong financial position.
"We are of the view, therefore, that it is appropriate to recommend the payment of our final dividend as planned."
He added that many pensioners and savers relied on dividend payments from their stock portfolio to provide an income.
According to This is Money, Flint said that the company had surplus capital of around £1.7bn and that it could afford the 14.3 pence a share payment, which would see the typical shareholder receive a cheque of around £100.
SLA confirmed today (3 April) that its AGM will take place at 11am on 12 May at the Assembly Rooms in Edinburgh, but stated that "if the current restrictions continue, shareholders would not be able to attend and we would encourage you to vote in advance of the meeting to make sure your vote is registered".
It said that only one board member will attend the AGM in person, while the presentations, which would have been given on the day by the chairman and chief executive, will be available on its website the day of the meeting.
Shareholders have been informed that there will be no ‘live' question and answer session on 12 May and that questions should be submitted via the online voting form or by email.
This article was first published by Investment Week