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Telefónica Halves Dividend, Shares Tumble More Than 13% in One-Day Rout

A halved payout prompted a rapid repricing by income-focused investors.

Overview

  • The stock sank over 13% in a single session, marking its steepest one-day fall in five years.
  • Shares closed at €3.73, breaking below the €4 level maintained since February 2025 and touching a price last seen in February 2024.
  • The plunge erased more than €3.186 billion in market value, leaving Telefónica’s capitalization just over €21 billion.
  • It was the company’s third-largest daily decline on record, trailing only Brexit’s fallout in 2016 and the COVID market crash in March 2020.
  • The selloff followed Telefónica’s decision to cut its dividend by half, a policy shift closely watched by income-oriented investors.