Dividend

Deutsche Telekom offers its shareholders a strong dividend yield with high reliability. Deutsche Telekom shares have therefore been a component of the DivDAX, the index of the 15 DAX shares with the highest dividend yields, since 2005.

Outlook on future dividends

Dividend for fiscal year 2024

At Deutsche Telekom's Capital Markets Day in October 2024, the Board of Management announced that it would propose a dividend of EUR 0.90 per share for the 2024 financial year to the shareholders' meeting. This proposal is subject to the approval of the shareholders' meeting and the fulfillment of further legal conditions. The distribution will take place after the Annual General Meeting in April 2025 and is tax-free for shareholders in Germany.

In addition, the Executive Board has decided to buy back treasury shares for a total of up to EUR 2 billion in 2024. This is intended to offset part of the dilutive effect of Deutsche Telekom's capital increase in 2021, which was carried out to acquire T-Mobile US shares from Softbank. A further share buyback of up to EUR 2 billion has been announced for 2025.

Dividend policy

Deutsche Telekom is committed to pay out 40 to 60 percent of adjusted sustainable earnings per share (EPS) as dividend per share each year. 

Analyst consensus for future dividends

In line with our dividend policy, analysts expect a dividend per share between 40 to 60 percent of earnings per share (EPS).
 

Further details on the consensus are available here. 

Tax free payment of dividends

Out of today’s perspective the dividend payment from the tax contribution account in accordance with § 27 will continue over the next years.

Background: As the dividend is to be paid in full from the tax contribution account in accordance with § 27 of the Corporation Tax Act (Körperschaftsteuergesetz– KStG), payment will be made without deducting capital gains tax or the solidarity surcharge. Dividends paid to shareholders in Germany are not subject to taxation. Dividends do not entail tax refunds or tax credits. In the German tax authorities’ view the dividend payment reduces the acquisition costs of the shares for tax purposes.

77ct dividend per share for the fiscal year 2023 

Deutsche Telekom has distributed a dividend of 77ct per share for the 2023 financial year. This corresponds to 48 percent of the adjusted earnings per share of EUR 1.60.