In a report from Reuters, the European Aeronautic Defence and Space Company N.V. (EADS) has indicated that higher dividends can be expected by shareholders in the coming years. The higher dividends are but a reflection of EADS' decision to shift from its current stage of high investments and putting behind all their problems of the past.
Harald Wilhem, EADS Chief Financial Officer, told Boersen-Zeitung, a German daily, "Formerly, EADS, was more cautious in its payout policy and at the time that was appropriate due to uncertainties, for instance those concerning the A380 programme."
He also added that, "The risk profile of the group has improved in the meantime. Therefore, we can move more into the direction of an investor-friendly dividend policy."
Mr. Wilhelm said that he expects EADS' free cash flow will recover after 2015 when it phases out product lines that require bigger investments. The EADS' free cash flow is the fund that will be utilized to pay high dividends.
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