Iberdrola has reported a robust performance with a dividend increase following a year of strong results. The electricity group announced its interim dividend for 2023, which will be paid at the end of January. In addition, shareholders will receive complementary shares, as the gross dividend rises to 0.202 euros per share, up from previous levels. This dividend requires approval at the forthcoming general meeting, anticipated to take place in July.
The notable dividend uplift comes just three months ahead of the company’s strategic update. A new plan is slated for release on March 21, aligning with growing profits and the company’s goal to deliver record earnings, investment activity, and higher dividends through 2025. The leadership anticipates a continued recovery in dividend payments in the years ahead as profits rise.
Previously, the group signaled an 11% hike in the interim dividend in the prior autumn, following a 2025 target to provide a minimum dividend level of 0.20 euros per share. Iberdrola now exceeds those early expectations with an even larger increase.
In the 2022 strategic plan update, Iberdrola outlined expectations for higher dividends in step with anticipated profit growth. The policy later outlined a payout framework whereby 65 to 75 percent of annual profits would be distributed to shareholders. Based on this guidance, the plan aimed to establish a base dividend of between 0.55 and 0.58 euros per share in 2025, with expectations of 0.46 euros for 2023-24 and 0.50 euros for 2025.
How and when this dividend will be collected
Shareholders can choose among three options under the flexible remuneration program for the 2023 interim dividend. They may receive cash, sell the allocation rights on the market, or obtain the group’s newly issued shares at no cost. Iberdrola has announced a capital increase of up to 1,304 million euros to support this revised pricing approach.
All three options can be combined according to individual preference. Those who want cash must inform their bank within the window from January 9 to January 23. Shareholders opting to receive new shares will require 58 free allocation rights to obtain a new share.
The plan outlines how many free allocation rights are needed to buy a share and confirms the gross interim dividend per share. Trading will end for shares with dividend rights on January 8, and the period for election and trading of free allocation rights runs from January 9 to January 23. The interim dividend will be delivered or paid on January 31, and the new securities will begin trading on February 2. (Source attribution: Iberdrola investor relations communications)