Telefonica Plans to Cut 2026 Dividend by 50%; Aims for Consistent Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 04 2025
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Source: WSJ
Dividend Reduction: Telefonica plans to reduce its 2026 dividend to 15 European cents per share, down from 30 European cents this year.
Future Dividend Policy: Dividends for 2027 and 2028 will be determined based on 40% to 60% of free cash flow after investments.
Growth Strategy: The company aims to achieve steady revenue and earnings growth by expanding its digital services.
Market Expansion: Telefonica is also looking to gain exposure to defense markets as part of its growth strategy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
