The dividend is the portion of the profit paid by the company to its shareholders.
The amount and conditions for the payment of the dividend are proposed by the Board of Directors to the General Meeting, which is usually convened within 120 days from the end of the Financial Year (December 31).
The share capital (*) of Telecom Italia is divided into two different types of shares:
- ordinary shares, the holders of which have the right to attend, intervene and vote during ordinary and extraordinary Shareholders’ Meetings. They also have the right to obtain a part of the net income allocated by the company, subsequent to its distribution to savings shareholders.
- savings shares, the holders of which do not have the right to vote neither in ordinary nor in extraordinary Shareholders’ Meetings but benefit from the distribution of the net income for the year in the proportion of 5% of the nominal value of the share (0.55 euro) and, in any case, a higher dividend than that paid to holders of ordinary shares in the proportion of 2% of the nominal value of the share.
Dividend Policy
On February 24, 2012 Telecom Italia Board of Directors illustrates 2011 Preliminary Results.
In light of the recent worsening of the macroeconomic climate and coherently with the goal to maintain the Telecom Italia credit rating, the Board of Directors’ meeting to approve the 2011 financial statements will propose to the shareholders a distributable cash of around €900 million.
Such dividend policy contributes to confirming the path towards debt reduction outlined in the previous business plan. Upon reaching of this target the shareholder remuneration will return to grow.
On March 29, 2012 Telecom Italia Board of Directors has convened a Shareholders' Meeting for 15 May 2012 (single call) to take place at the Rozzano auditorium (Milan), Viale Toscana 3.
The Board will submit to Shareholders the proposal to distribute a dividend of 0.043 euro per ordinary share and 0.054 euro per savings share. The dividend shall be paid out from 24 May 2012, ex-coupon on 21 May 2010.