(Alliance News) - Heidelberg Materials AG on Thursday said it will be raising its annual dividend in line with its continued focus on returning value to shareholders, as the company also announced an extended contract for Chair Dominik von Achten.

Heidelberg Materials is a building materials company based in Heidelberg, Germany, which holds a market capitalisation of EUR17.07 billion.

Heidelberg Materials said it will propose a dividend of EUR3.00 per share for the 2023 financial year at its annual general meeting on May 16. This represents an increase of 15% on its 2022 dividend of EUR2.60.

Combined with its EUR1.2 billion share buyback programme, announced in February and set to run until 2026, Heidelberg said the dividend increase underlines its "strong focus on shareholder returns".

The company has also extended the contract of Chair Dominik von Achten, set to expire in January 2025, to January 2028. Von Achten has held the position since 2020.

Shares in Heidelberg Materials were up 1.8% at EUR95.44 each in Frankfurt on Thursday morning.

By Hugh Cameron, Alliance News reporter

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