Business blog

Elop Stops Paying Dividends as Part of Nokia’s Turnaround Strategy

You might have read that blog entry a recently where we tried to make the case for a business cutting the amounts paid to shareholders in dividends in order to conserve cash and/or invest in projects.

Well it looks like Stephen Elop must read the Business Studies blog (thanks Stephen) because that's exactly what he and the Nokia board have just decided to do!

Nokia has cancelled its dividend for the first time in its 148-year history as the business looks to counter intense investor concerns about its cash position.

The official reason given by Nokia for this decision is that of providing the firm with "strategic flexibility". In other words, it may need the cash, so it's best t hang on to the cash rather than give it to shareholders.

Here is an extract from the Nokia results announcement:

To ensure strategic flexibility, the Nokia Board of Directors will propose that no dividend payment will be made for 2012 (EUR 0.20 per share for 2011). Nokia’s Q4 financial performance combined with this dividend proposal further solidifies the company’s strong liquidity position.

This video from Bloomberg features a brief comment from Nokia CEO Stephen Elop and some follow-up analysis of the background to and reasons for Nokia's decision to stop the dividend.


BUSS3 Exam Technique Advice

BUSS3 is a tough paper - look through the advice and guidance in these tutor2u resources

Read more ›

Teaching & learning products

AQA A Level Business Year 1 (AS) Practice Exam Papers

This resource comprises two practice exam papers (with supporting mark schemes) for each of the two Year 1 (AS) papers. The format of each practice exam paper follows precisely the format of the specimen assessment materials issued by the board that have been accredited by Ofqual.


AQA BUSS2 Worked Answers (2013-2014)

Exemplar A grade answers to the three BUSS2 exam papers in 2013 and 2014