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Telefónica Cuts Next-Year Dividend as New 2026–2030 Plan Targets Growth and Lower Debt

The move prioritizes investment over cash returns to reinforce the balance sheet.

Overview

  • The company will keep the €0.30 cash dividend for 2025 in two payments scheduled for December 2025 and June 2026.
  • For 2026, it will pay €0.15 per share in a single cash distribution in June 2027.
  • Management set 2027–2028 shareholder remuneration at 40–60% of free cash flow, pending board approval.
  • The Transform & Grow plan targets revenue growth of 1.5%–2.5% in 2025–2028, accelerating to 2.5%–3.5% in 2028–2030, with efficiency gains of up to €2.3 billion by 2028 and €3 billion by 2030.
  • Telefónica will focus on Spain, Germany, the UK and Brazil, invest in AI and networks, and stay prepared for European consolidation, which the plan document cites as offering €18–22 billion in potential synergies according to analysts.