Skip to content
Subscriber Only

BBVA, CaixaBank Revenue Hurt by Cut to Telefonica’s Dividend

  • Spanish carrier to cut dividend to 30 euro cents per share
  • Lender duo are Telefonica’s top two biggest investors
Telefonica is cutting its dividend for the first time since 2016 to preserve cash after the pandemic exacerbated competitive pressures in its biggest markets.

Telefonica is cutting its dividend for the first time since 2016 to preserve cash after the pandemic exacerbated competitive pressures in its biggest markets.

Photographer: Angel Garcia/Bloomberg
Updated on

Telefonica SA’s decision to cut its dividend will pare back a source of income for Banco Bilbao Vizcaya Argentaria SA and CaixaBank SA, the Spanish lenders that are its biggest shareholders.

BBVA, Spain’s second-biggest bank, and CaixaBank, the third-largest, are set to miss out on combined payments of about 54.5 million euros ($66.6 million) after the communications giant said Thursday that it would reduce its dividend to 30 euro cents per share from 40 cents.