RWE AG (RWE.XE) Thursday said it may decide to return extra cash to shareholders through dividends and share buybacks after 2010 if its fails to fully realize its growth targets.
RWE has said that it plans to spend EUR30 billion to 2012 for organic and external growth - mainly by boosting its renewable energy and natural gas businesses and expanding into overseas markets.
"Should these measures not prove sufficiently feasible of expedient by 2010, we will pay out more to our shareholders through dividends and share buybacks," Chief Executive Juergen Grossmann told shareholders at the company's annual general meeting in Essen.
RWE's present dividend policy aims for a payout ratio of between 50% and 60% of recurrent net profit. However, the company plans a one-time increase in the payout ratio to between 70% and 80% in case it manages to successfully float a majority of its U.S. water unit American Water.
Earlier Thursday, Grossmann said the company plans to IPO American Water by the end of April.