Telefónica Plans Dividend Cut to Align with European Peers

Telefónica plans to cut its dividend to align with European peers, aiming to strengthen its balance sheet, free cash for investments, and signal financial discipline. The new strategy, set to be presented on Nov. 4, will reduce the dividend yield target from 6.6% to around 4.8% for this year and 5.2% for next year. The move marks a break from tradition for the Spanish carrier, which has only scaled back its dividend three times in the past three decades.