On December 19, the State will collect 85 million euros in dividends from Telefónica for its 10% stake in the telecommunications company through the State Industrial Participation Company (SEPI), an amount similar to what CriteriaCaixa will receive, with a weight of 9.99%. in the company, and the Arab operator STC – controlled by the Saudi sovereign fund public Investment Fund (PIF) -, which holds 9.97% of the company’s capital. Next week Telefónica will pay its shareholders 0.15 euros per share, an amount corresponding to the second tranche of the gross dividend of 0.3 euros per share that it will pay in 2024 (the first tranche was paid last June).
The State invested almost 2,285 million euros to reach its 10% share in Telefónica, so only with the 2024 dividends it has already amortized 7.43% of the amount allocated for this operation (it completed the purchase of the 10% of Telefónica for 2,285 million euros in May). Similarly,if we take Telefónica’s price as a reference at the end of the stock exchange session on Friday 13 December,the 4.278 euros per share at which the company closed means that the market value of the State share package amounts to almost 2.426 millions. euro, i.e. 6.17% more than the amount invested to reach that 10% participation.
For its part, CriteriaCaixa reached a 9.99% position in the operator’s capital at the end of last June, when Telefónica had already paid the first tranche of its annual dividend, compared to just over 5% it had then. In this way, CriteriaCaixa collected 43.18 million euros from the first tranche of Telefónica’s dividend, so added to the approximately 85 million euros it will receive next week, the institution will pocket a total of almost 130 million euros.
For its part, on November 28 it was announced that STC received the green light to complete the acquisition of 9.97% of Telefónica, so the compensation it will receive next week will also be around 85 million euros, compared to 42 .26 million euros received from the first tranche. Like CriteriaCaixa,the Saudi telecommunications company will collect approximately 130 million euros in dividends from Telefónica this year,thus managing to amortize approximately 6.2% of the 2.1 billion euros invested to control 9.97% of the company chaired by José María Álvarez-Pallete.
In this context,Monday 16 January will be the last day on which shareholders will be able to purchase telefónica securities with the right to receive the dividend of 0.15 euros that the telecommunications company will pay on 19 December.Therefore, on 17 December the company’s shares will be listed without the right to this remuneration and the following day, 18 December, the entitled parties will be persistent. Telefónica will distribute a total of 850.52 million euros corresponding to the second tranche of the dividend.
- What are the implications of telefónica’s dividends for individual investors looking to enter the telecommunications market?
Interview with telecommunications Expert on Telefónica Dividends and Industry Implications
Published on Time.news
Editor: Thank you for joining us today. We’re discussing the recent news about Telefónica’s dividends and the implications of its current market activities. Can you explain why the State is receiving 85 million euros from Telefónica’s dividends?
Expert: Absolutely.The Spanish State holds a 10% stake in Telefónica through the State Industrial Participation company (SEPI), wich cost approximately 2.285 billion euros. this considerable dividend payout of 85 million euros illustrates a solid return on investment for the State. The dividend is part of Telefónica’s policy of returning value to shareholders, which reinforces investor confidence in the company’s stability.
Editor: It’s engaging to note that CriteriaCaixa and the Saudi operator STC will also receive substantial dividends. Could you shed some light on their involvement?
Expert: Certainly! CriteriaCaixa, with a stake of 9.99%, will receive similar returns, totaling around 130 million euros from both dividend tranches this year. Similarly, STC, which holds almost 10% of Telefónica, will also pocket around 130 million euros. This indicates the attractiveness of Telefónica as a stable investment, providing critically important yields to its shareholders amidst a fluctuating global market.
Editor: The state has already amortized 7.43% of its initial investment through these dividends. What does this signify for the future of such investments in telecommunications?
Expert: It shows a positive trend for investors in the telecommunications sector. Amortization demonstrates how dividends from solid companies can quickly enhance the value of substantial investments. Given the market value of the state’s share package now exceeds the original investment by 6.17%, this signals a robust performance in a competitive field. As telecom companies evolve with new technologies, like 5G and beyond, we can expect favorable returns, which could attract even more institutional investors.
Editor: Regarding Telefónica’s stock, there’s a deadline where shares will be traded without the right to the upcoming dividend. How should investors approach this?
Expert: Investors should act swiftly. The last day to purchase Telefónica shares with the right to the 0.15 euros dividend is January 16. After this date, the share price—including the dividend right—will adjust accordingly. So, potential investors looking to benefit from the dividend should consider buying before that cutoff. However, it’s essential to analyze market conditions—investors need to weigh immediate dividend benefits against long-term growth potential.
Editor: What broader trends can we expect in the telecom industry based on this dividend news and current market conditions?
Expert: We predict a more competitive landscape as telecom companies seek to innovate and diversify their offerings—especially in digital services and infrastructure. The ongoing digital conversion is nudging telecoms to invest heavily in 5G technology, which can drive up operational costs initially but eventually heralds new revenue streams. Companies that adapt successfully to these shifts will not only offer attractive dividends but will also gain a competitive edge, ensuring they remain viable in an ever-evolving market.
Editor: Thank you for the insights! As the telecommunications sector continues to evolve, understanding these dividends and investment strategies will be essential for investors aiming for long-term success.
Expert: Thank you! It’s crucial for all stakeholders to stay informed on these developments, as the telecom industry plays a vital role in shaping our digital future.
keywords: Telefónica dividends, telecom industry, State investment, CriteriaCaixa, STC, telecommunications sector, investment strategies, 5G technology, digital transformation.