Telekom increases dividend and plans share buyback: Shareholders can look forward to billions in payments.

Telekom increases dividend and plans share buyback: Shareholders can look forward to billions in payments.

According to a report by n-tv.de, Deutsche Telekom is announcing billions in dividends to its shareholders. The dividend for 2023 is to be increased by ten percent to 0.77 euros per share. In addition, a share buyback worth two billion euros is planned. This step is planned by the Telekom Group's board of directors based on business developments for 2023.

Deutsche Telekom has already raised its targets for the current year twice, mainly due to the successful business of its US subsidiary T-Mobile. Analysts expect the company to raise its forecasts again when it releases its third-quarter figures.

The news about the planned distributions had a positive impact on Telekom's share price, which continued to rise and exceeded the 21 euros per share mark. The increased dividend would mean a return of just under 3.7 percent.

The final decision on dividend planning will be made by the Supervisory Board as soon as the business figures for 2023 are available. The general meeting must approve the final proposal from the management board and supervisory board for the 2023 financial year, and other legal requirements must be met.

This announcement by Telekom has a potentially positive impact on the market and shareholders. The increased dividend and share buyback could increase investor confidence and cause the share price to rise further. This could also increase the attractiveness of the stock and attract new investors.

Source: According to a report by www.n-tv.de