By Natascha Divac

FRANKFURT--German retailer Metro AG (MEO.XE) said Wednesday it would increase its dividend for the 2015 fiscal year following an improvement in its net debt position and on the benefits of its ongoing restructuring program.

For the fiscal year 2014/2015, the company will propose 1 euro ($1.06) dividend for each ordinary share and EUR1.06 for each preference share, corresponding to a payout ratio of 52.4%. For the previous fiscal year, the company paid a dividend of EUR0.90 for each ordinary share.

Metro said it would increase its payout ratio to between roughly 45% and 55% from a previous range of between roughly 40% and 50%.

"Reasons for the increase are the already visible positive signs of the initiated transformation of Metro Group, as well as the significantly improved net debt," Metro said.

For the fiscal full year 2014/2015, the company reported sales of EUR59.2 billion, down 1.2% from a year earlier.

-Write to Natascha Divac at natascha.divac@wsj.com

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(END) Dow Jones Newswires

November 25, 2015 02:37 ET (07:37 GMT)