Santander increases cash dividend by 50% and will buy back nearly 1.5 billion shares

santander sucursal 3CM

Banco Santander’s board of directors announced on Monday that it will vote at the next general shareholders’ meeting, scheduled for 22 March 2024, on a final cash dividend charged to 2023 of €0.095 per share. Thus, the total cash payment from last year’s accounts will be 17.60 cents, an increase of approximately 50% compared to the remuneration of the previous period. In addition, the bank will launch a share buyback of approximately €1.5 billion, which will start on Tuesday, 20 February. The reception on the stock market has been good and its shares have risen by 2.5%. At the close, it ended with a rise of 1.76%.

According to the schedule, the cash dividend will be paid on 2 May 2024 and the total shareholder remuneration from the 2023 results will amount to more than €5.5 billion, which means an equivalent yield of approximately 10%. Once the new share buyback is completed in June, Santander will have repurchased approximately 11% of its outstanding shares since 2021.

With these payments, the payout (the proportion of profits distributed to shareholders) increases from 40% to 50% of attributable profit, in line with the new shareholder remuneration policy announced at Investor Day last week.

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