Telefónica Plans Dividend Cut to Align With European Peers

Telefónica SA is set to cut its dividend as part of a new strategy plan due next week, according to people familiar with the matter.

The Spanish carrier has one of the highest dividend yields among European telecom operators and its new policy aims to align it with peers, said the people, who asked not to be named as the matter isn’t public. The change also seeks to strengthen the balance sheet, free cash for investments, and signal commitment to financial discipline, they said.