SAN - Banco Santander: The New Dividend Policy Makes Sense Expect A 3.3% Yield With 20% Cash Payout Ratio
- Banco Santander has overhauled its shareholder reward policy.
- 40% of the underlying net profit will be spent on shareholder rewards, split between dividends and share buybacks.
- I think this is a good move: 60% of the earnings are retained to strengthen the balance sheet and the book value.
- Santander is currently buying back stock at a 30% discount to tangible NAV, and this will help to increase the Tangible Book Value per remaining share.
- I currently have no position, but would consider going long again.
For further details see:
Banco Santander: The New Dividend Policy Makes Sense, Expect A 3.3% Yield With 20% Cash Payout Ratio