Dividend and share buyback
Telekom pays out more to shareholders
November 2, 2023, 2:07 p.m
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Next week Telekom will open the books and report on summer business. Analysts then expect the forecast to be raised again. In any case, investors can be happy – the Bonn-based company has billions in payments ready for them.
Deutsche Telekom announces a feel-good program for shareholders. A week before the quarterly results are announced, the group is promising billions in dividends. Accordingly, the dividend for 2023 is to be increased by ten percent to 0.77 euros per share. In addition, a two billion euro share buyback is planned for next year. The board of directors’ planning for this shareholder compensation “is based on business developments in 2023,” it said.
Thanks, among other things, to the booming business of the US subsidiary T-Mobile, Telekom has already raised its targets for the current year twice. Analysts expect the company to raise its forecasts again when it publishes its third-quarter figures.
“Our shareholders have supported our strategy for many years, trusting that we will prudently use the capital that they make available to us. This was also the case with the 2021 capital increase, with which we strengthened our position at T-Mobile US. We have that “They accept a dilution of their stake in Deutsche Telekom. We are now partially compensating for this by buying back shares,” said Telekom boss Tim Höttges.
The news was well received on the stock market. The shares increased their profits slightly and, in an initial reaction, jumped back over the mark of 21 euros per share. At this value, the increased dividend would correspond to a return of just under 3.7 percent.
The Supervisory Board will make the decision on the Board of Directors’ dividend planning as soon as the final business figures for 2023 are available. The Annual General Meeting must also approve a payment based on the final proposal from the Executive Board and Supervisory Board for the 2023 financial year. In addition, other legal requirements must be met.