Q4 numbers were in line with expectations and quite reassuring.
Telefonica has, however, preferred to cut its dividend by 25% (at €0.3 vs €0.4 previously) to preserve its cash flow while its investments will remain substantial in the coming years. So after the recent sale of its telecommunications towers division in Europe and in Latin America for €7.7bn to American Tower, this cautious cut could indeed help restore market confidence.
We maintain our opinion at Buy on the stock.
25 Feb 2021
A reassuring Q4 and a 25% dividend cut
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
A reassuring Q4 and a 25% dividend cut
Q4 numbers were in line with expectations and quite reassuring.
Telefonica has, however, preferred to cut its dividend by 25% (at €0.3 vs €0.4 previously) to preserve its cash flow while its investments will remain substantial in the coming years. So after the recent sale of its telecommunications towers division in Europe and in Latin America for €7.7bn to American Tower, this cautious cut could indeed help restore market confidence.
We maintain our opinion at Buy on the stock.