Nokia Will Not Pay Dividend to Investors For the First Time in 143 Years

| January 24, 2013 | 35 Replies

Nokia+logo,+Helsinki,+Finland+87570Earlier today Nokia published their Quarterly earnings for Q4 2012; announcing that they’re back in black with $585 Million dollars in profit. Q42012 is the first time in almost 2 years (7 Quarters exactly) that Nokia has netted a profit; Nokia’s choice to not pay dividend to investors is a strategy to assure people they know they still have some work to do, according to analysts:

The dividend omission “is a very important step because it shows management is conscious of the work that is ahead,” said Eric Beaudet, an analyst at Natixis Securities in Paris. “It’s clearly a strong signal to the market that says ’Don’t worry about our balance sheet, we’ll do what it takes.’”

Source

 

Category: Lumia, Maemo, MeeGo, Nokia, S60, Symbian, Windows Phone

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Comments (35)

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  1. Jay Montano says:

    143 years…over 20 years…hmmm. Either way, you got to do what you got to do. Refocus these resources on getting back on your feet.

  2. BellGo says:

    Educate a fool, what exactly does paying divided to investors mean, and why did they change it now?

    • jtanigawa says:

      They basically give investors more stock in the same way banks give people more money for having money in their savings account.

    • Pdexter says:

      It’s about paying certain amount per share back to investors once a year from their net cash reserves.

      For example Nokia i believe paid 0.20 euros per share dividend last year.

      • akse says:

        Yes. If you own 1000 Nokia stocks and they make profit and they decide to pay back something for the investors like 0.20 euros you will gain 200 euros.

        For long time stock investors this is a good source of money when you invest into profitable businesses. Every year they keep paying you more and more if you invest those moneys back to the companies again.

  3. tonysingh says:

    Whats it about 143 yrs????
    is nokia tht old

  4. Mark says:

    Good idea and shuld have done this two years ago.

    I think most investers will be happy with this.

    • Noki says:

      agree with the first comment.

      the second does not make any sence…

      (BTW been suggesting that Nokia stopped paying dividends since it started making a loss)

  5. twig says:

    Thank you Nokia!!! Finally you got some balls and think away from the headlines. Get the ship ready to sail on its journey to the land of profits and sales growth.

    And speaking of Androids …..did you see the huge growth of malware,etc. expected for the year 2013 for Androids? Over 1 million bits of malware, virus,etc will be targeting your Android devices. About triple what it is now. Truly amazing. No wonder f secure says go with Windows.

    • mdev says:

      Stop with this BS please. It’s obvious for anybody that Nokia would be much better now if they decided to go with Android. Only Elop and WP fans are saying otherwise.

      Any parallel with HTC is pure nonsense. HTC was nowhere before Android. Android gave them a chance to be on the map. They blew it and that’s it. But Nokia was the best before WP and would be a worthy rival to Samsung. Alas, it was sacrificed to give WP a chance.

    • DesR85 says:

      “And speaking of Androids …..did you see the huge growth of malware,etc. expected for the year 2013 for Androids? Over 1 million bits of malware, virus,etc will be targeting your Android devices. About triple what it is now. Truly amazing. No wonder f secure says go with Windows.”

      Last year when a colleague from the IT department was inquiring about my L800, he asked whether a firewall and anti-virus is needed for it. I told him that it had neither and there is no need for any since the Marketplace isn’t plagued by malware, trojan or other viruses, unlike the Android Market (now Google Play). He was relieved to hear that.

      I have heard of malware and what not on Android phones if users happen to install the wrong app, or installing an app outside the Google Play but I didn’t know it is so serious until a firewall and anti-virus is needed.

      • Luisito says:

        Yeah… Keep away of a Windows PC… its full of malware, virus and crap… keep away of it, use Linux, MAC, Solaris, BSD or anything else… The more succesfull become an OS, more bad guys come to it…

        • BJ says:

          OS X is pretty successful as well as Linux in the server world (not to mention those server machines are online 24/7) and nobody’s done any serious harm yet.

    • incognito says:

      Over 1 million bits of malware? Sooo, there is around 125kB of malware written for a platform that is used by the vast majority of people and accounts probably for terabytes of software written for it. It is then, defacto, more secure than anything else on the planet!

      Damn, I thought Android had it much worse.

  6. meh says:

    According to finnish press last time Nokia did not pay dividend was 1989.

    Source in finnish: http://www.iltalehti.fi/talous/201301240130227_ta.shtml

  7. ms.nokia says:

    i don’t understand why now,
    they paid dividends before when they where not in profit for almost 2 years.
    but now that they are in profit nokia decides no dividend ?

    not happy :(

    • Pdexter says:

      THey want to increase their cash reserves for investing (investing=for future).
      They would have never paid dividends if they had known how crappy 2012 was for them.

    • zlutor says:

      Stock price was in free-fall then, so they have no any other chance just keeping paying dividend.

      Otherwise share price would have been collapsed and Nokia would go bankrupt…

      No share price increasing, there were some positive new – see, they announced not to pay now, not months before – so they can not do this without endangering the price (too much).

      • zlutor says:

        eehhh, typos…

        so, NOW share price increasing, there were some positive new – see, they announced not to pay now, not months before – so they CAN do this without endangering the price (too much).

  8. GordonH says:

    “So if their license costs based on sales of 4.4mm handsets exceeded the $250mm in support payments, that would equate to something like $60/unit of license fee. which is in line with previously reported figures of $50-65 per ARM device to license Windows 8 RT and Office 13. Wow, that’s a lot to give up compared to the Android manufacturers who pay Google $3 per device (and some pay MSFT another $10 or so). And that doesn’t even include maps since Nokia has their own excellent maps app.”
    Got this off the comments section in another blog. It’s an interesting point.

    • Pasanen oli hieno mies says:

      Yes, randoms comments are widely used as a hard evidence. By some Nokia fans.

      For example people were saying how N9 was selling 1,75 million units in Q4 2011. The hard evidence? Some random comments and no one really know what to look for. But, it it considered as a fact because someone is telling us that a load of random comments proves that number.

      This is most interesting.

    • Viipottaja says:

      They did not. Nokia said,that to date the platform support payments have exceeded nokias licensing fees to ms.

  9. Doffen says:

    Nokia needs the money to pay MS for WP…

  10. Zizou says:

    Thats really good for nokia i believe..:)
    Anyway.. Guys.. This is completely off topic and i need you to help me.. I wanna purchase a good ultrabook or laptop priced under rupees 40000 or $725 , plis guys… I’m waiting…:) thanks..

  11. tired says:

    Just wondering what percentage of the profit is from operations and what is profit percentage from sale of HQ, bits and bobs of assets. Could someone who knows share? Thanks.

  12. DJ says:

    Glad to see Nokia is making money and not losing like the haters predicted

  13. rustyknight17 says:

    Yeahhh , glad to see Nokia finally making money . that said , it`s not good that ` it`s only $585 M and that Nokia only 4.4 M Lunias , despite WP8 and the 920`s apparent success .
    TBH , Nokia had a clear shot at record sales with no credible challengers released brecently and 4.4 million is all they can move ?
    Oh and BTW , that includes WP7 Lumias as well…
    Nokia`s not going to have that advantage any more

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