* Dividend payout ratio to be around 30 pct for 2013
* Previous ratio had been around 25 pct
* CEO says few attractive takeover targets at present
* Shares rise 1.1 pct
(Adds comment on acquisitions, shares, background)
FRANKFURT, Jan 21 German adhesives and
detergents maker Henkel plans to pay out more of its
profits to shareholders in dividends as earnings improve and
takeover targets prove hard to find.
The maker of Persil laundry detergent and Loctite glues said
on Tuesday its future dividend payout ratio would be 25-35
percent of adjusted net income, instead of about 25 percent now.
For 2013, it would propose a dividend payout ratio of about
30 percent, it added.
Shares in the group were up 1.1 percent at 0845 GMT,
outperforming a 0.3 percent gain for Germany's benchmark Dax
index as investors welcomed the prospect of a higher
But some analysts said the plan also showed the difficulties
of finding appropriate acquisitions to fuel growth.
"The decision to use more cash for dividends means less than
100 percent focus on external growth as targets (at an
appropriate price) are likely difficult to find," Equinet
analyst Nadeshda Demidova wrote in a note.
Henkel, whose last major acquisition was that of National
Starch in 2008 for 3.7 billion euros ($5 billion) to expand its
adhesives division, has been on the hunt for deals for over a
year and has said it has around 4 billion euros available.
But suitable targets have not been easy to find, Chief
Executive Kasper Rorsted told a paper on Monday, echoing
comments he made at the end of 2013.
"There are few attractive opportunities on the market at
present," Rorsted was quoted as saying by Frankfurter Allgemeine
Zeitung. "But there will be interesting possibilities in the
next few years."
Henkel paid a dividend of 0.95 euros per preferred share for
2012. Analysts were expecting a 2013 payout of about 1.05 per
share before Tuesday's statement, according to Thomson Reuters
"Our significantly increased profitability and financial
strength allow us to increase the dividend payout ratio without
impacting our strategic flexibility and our conservative
financial strategy," Rorsted said in a statement.
Henkel is due to release full-year results on Feb. 20. It
expects an adjusted EBIT margin - earnings before interest and
tax as a percentage of sales - of about 15 percent for the year.
($1 = 0.7373 euros)
(Reporting by Victoria Bryan and Ludwig Burger; Editing by Mark