Business

BMW dividend plan disappoints shareholders

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BMW reported a record €6.3bn (£4.8bn) profit in 2015 as sales grew across the company's major markets.

The 10% increase in profit was helped by strong sales of its sport-utility-vehicles.

Despite the better than expected results the carmaker's shares slipped 2%, as investors expressed disappointment in BMW's dividend plan.

The German carmaker will raise its dividend to €3.20 per share from €2.90 from the year before.

Sales volumes rose 6.1% globally. China was the only market to show signs of slowing - sales climbed just 1.6% after years of speedy growth.

Sales in Europe rose 9.4% while sales in the US climbed 2.2%.

BMW forecast that 2016 sales volume would top last years.

"We are again targeting a new sales volume record in 2016, with sales expected to be slightly up on the previous year," said BMW chairman, Harald Kraeuger.

BMW celebrates its 100th anniversary this week.

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