Editing Tetragon Financial Group (section)

== Dividends and share repurchases<ref name=":2" /> ==
Tetragon does not target any specific dividend payout ratio. Tetragon’s board declares dividends, based on the recommendation of the investment manager, subject to the approval of Tetragon’s voting shareholder and adherence to applicable law. Edison Investment Research notes, as described in capital structure section on page 13, that all voting shares are ultimately owned by the co-founders. Dividends are paid quarterly in May, August, November and March each year. Additionally, Tetragon regularly buys back shares from the market, with the programmes conducted through a Dutch auction at a price close to the market price of the shares, resulting in NAV accretion.

Dividend payments decreased in response to the COVID-19 outbreak, with DPS paid from FY20 profits reduced by 46% y-o-y versus FY19 to US$0.40. Consequently, US$44.8m was paid out during 2020 versus US$65.2m i<ref>Source: Tetragon Financial Group, Edison Investment Research.</ref>n 2019 (down 31% y-o-y, due to the Q419 dividend being paid in 2020), but this was mostly offset by a higher buyback amount (see Exhibit 11). In FY21, DPS was increased by just 2% to US$0.41 (although this now implies a solid yield of 4.1% on a last 12-month basis). While no buybacks were performed in FY21, Tetragon conducted a tender offer in April 2022, buying back over 4m shares for a total consideration of US$42m at US$9.75 per share. During 2021, Tetragon acquired 219k shares from TFG Asset Management for a total consideration of US$2.1m.

Shareholders have an option to receive dividends in the form of shares and in FY21 US$11.6m (FY20: US$14.1m) out of the US$35.8m gross dividend paid during the year (FY20: US$44.8m) has been taken in shares by investors. The dividends paid in cash during 2021 amounted to US$24.2m (down from US$30.7m paid in 2020).

'''Exhibit 10: Dividend paid from period earnings (US$)'''<ref>Source: Tetragon Financial Group, Edison Investment Research.</ref>

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'''Exhibit 11: Repurchases and allotments (US$m)'''<ref>Source: Tetragon Financial Group, Edison Investment Research.</ref>

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