Saga has increased its dividend by 18% year-on-year after reporting a satisfactory result for the full financial year 2016.
The insurance broker and cruiseship owner posted annual pre-tax underlying profit of £187.4m ($233m), an improvement of 5.6% compared to 2015.
Saga has proposed a final dividend of 5.8p per share, meaning a total yearly dividend of 8.5p per share.
The London-listed company has also reduced its net debt by 15.1% to £464.8m.
Lance Batchelor, chief executive of Saga, said: “For the third successive year since IPO, we have delivered a strong set of financial results.
“Debt is down sharply and I am very pleased that the dividend has again materially increased.”
Batchelor noted that all Saga’s segments performed well, including its insurance and cruiseship divisions.
Saga is expecting the delivery of its new vessel Spirit of Discovery in the summer of 2019, for which the first itineraries will go on sale in 2017.
“Our performance has continued to prove the strength of the Saga business model, which builds multi-decade relationships with our target demographic through a range of excellent products and services,” Batchelor added.
