Telefónica has confirmed its shareholder remuneration policy. The company plans to pay a cash dividend of 0.30 euros per share towards 2022. The first tranche, amounting to 0.15 euros per share, will be paid out in December this year, and the second tranche, for the same amount, will be in June. 2023 .
The company decided to abandon the dividend scrip, a formula used in recent years, after uncertainties such as the impact of the pandemic or auctions of 5G cellular spectrum in key markets such as Spain, Brazil and the UK were abandoned, leading to cashier exits.
In addition, in its remuneration policy to shareholders, Telefónica’s board of directors has approved a proposal to the shareholders’ meeting to amortize 0.43% of the company’s current owned capital in treasury stock.
With this route, the company seeks to increase earnings per share and reduce capital volume, which is at an historic high after increases made to finance scrip dividends.
Last June, Telefónica paid the second tranche of its 2021 dividend, also of 0.15 euros per share, through a voluntary flexible dividend modality. In that case, 74.5% of shareholders chose to receive new shares.
In April, the telecommunications company reduced its share capital through the amortization of its own shares (139,275,057) of the company itself.
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