Telefónica has been under pressure on the stock market after announcing a dividend cut in its new strategic plan, but it must be remembered that the remuneration will continue to be as generous as always in the next payments. Of course, for the first one you have to hurry, since December 15 (next Monday) is the last day on which shares are traded with the right to receive it.
Other important company dates to take into account are:
- December 16: date from which the shares will be traded without the right to receive the dividend.
- December 17: date on which the registered holders who have the right to receive the dividend are determined.
- December 18: dividend payment date.
Telefónica’s dividend in 2025 will be 0.30 euros per share payable in two tranches, in December 2025 and June 2026; and dividend hunters still have time to collect the first of them. On the 18th of this month the teleco will disburse 0.15 euros per sharewhich will mean a disbursement of about 850 million euros. However, it must be taken into account that the deadline to acquire shares with the right to collection is this Monday, December 15, since as of Tuesday, December 16, they will begin to be traded without the right to collection (ex-dividend).
The dividend cut will not arrive until 2026, when it will be 0.15 euros per share in cash to be paid in June 2027. Meanwhile, the remuneration target for 2027 and 2028 will be based on a range of 40-60% of the base free cash flow (FCF) for dividend (payout), payable in June of the following year.
Today the company offers a dividend yield greater than 8%which continues to be one of the highest in the Spanish market.
Telefónica shares have been subject to strong market pressure after the announcement of a lower dividend as part of its new strategic plan. The titles have accumulated a fall of 15% since the presentation of this plan and are now down more than 25% from their annual highs, set at 4,893 euros since August 20.
The lowest point of the year was reached on November 5, the day after the presentation of the plan, when the shares reached 3,562 euros. Since then, they have bounced 2.58%.
Looking ahead, fundamental analysts seem to consider that the punishment has been excessive, although they do not see the stock recovering its highs of the year in the medium and long term. According to data compiled by Reuters, the majority recommendation that Telefónica receives is ‘keep‘, while the average target price climbs to 4,02 euroswith a upside potential of more than 10% compared to the current price.