Telefonica released a solid Q2 with the expected 3.3% revenue growth but a good EBITDA progression of 3.5% despite higher energy costs and personnel expenses. We are confident about the group’s objectives for 2023 and therefore believe the 2023 dividend to be secure. We even think it could be increased from 2024. Our target price is probably too ambitious in the short term and a price of €4.6 is more reasonable (implying a 6.5% dividend yield).