Spanish bank Banco Santander S.A., or Santander Group (ES:SAN), announced yesterday a 39% raise in its interim dividend for 2023, along with a share buyback program for €1.3 billion. This hike is in sync with its shareholder payout policy declared during the bank’s Investor Day in February. The interim compensation for the 2023 results translates to an annualized dividend yield exceeding 9%.
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The Santander Group continues to be a reliable dividend payer in the Spanish market, making it an attractive choice for income investors. To explore more such stocks, users can refer to TipRanks’ Best Spain Dividend Stocks tool, which features a list of Spanish companies with impressive dividend yields.
Santander Group is the largest financial institution in Spain, offering a comprehensive range of services, including banking and wealth management. The bank serves around 160 million customers globally.
Let’s take a look at more details.
Banco Santander Dividend 2023
The total shareholder remuneration for the first half of 2023 is slated to be around €2.6 billion, representing approximately 50% of Santander’s first-half attributable profit. Out of this, half will be paid in the form of cash dividends, while the remaining half will be through share buybacks. Yesterday, the board of directors at Santander declared an interim cash dividend of €.081 per share for the 2023 results, marking a 39% increase compared to the previous year’s dividend. This dividend will be paid on November 2, 2023.
The bank further stated that it is progressing according to plan to achieve its targets for 2023. Its recent decision to align its operations in retail, commercial, and consumer finance with its strategy positions it to enhance profitability.
In July, the bank delivered impressive numbers in its first-half earnings report for 2023. It reported a 7% increase in its attributable profit of €5.2 billion, as compared to the first half of 2022. The total income grew by 13% to €28.3 billion, driven by a 15% jump in net interest income.
Is Banco Santander Stock a Buy?
Following the announcement, the bank’s stock experienced an increase of 1.78% today at the time of writing. The stock has demonstrated strong performance throughout 2023, posting a year-to-date gain of approximately 24%.
SAN stock has received a Moderate Buy rating on TipRanks, backed by five Buy and five Hold recommendations. The Santander share price target is €4.82, which is around 38.5% higher than the current trading levels.
