Telefonica has lowered its outlook for dividend payments citing the difficult economic environment and turmoil on financial markets. The Spanish operator will maintain its pay-out of EUR 1.60 per share this year, of which EUR 0.77 was already paid in November. The remaining EUR 0.83 will be distributed in May 2012 in a combination of cash and treasury shares held by the company, up to EUR 0.30 per share. For 2012, the total shareholder remuneration will drop to EUR 1.50 per share, including a cash dividend of EUR 1.30 per share and a share buyback for the remaining amount. Telefonica expects to pay a similar amount in 2013, but will decide later on the mix of dividend, share buyback or combination of the two. The company previously targeted a dividend of EUR 1.75 per share in 2012 and at least that amount from 2013.
