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Last update: 05/11/2025
Shareholders and investors need to understand financial concepts about listed companies. One that really interests them is the “payout”: the share of profits that a company “pays out” to them. Below is everything you need to know about payouts.
A payout is the share of profits that a listed company will pay its shareholders. If the payout set out in the company’s shareholder remuneration policy is 50%, the company will distribute half of its net profits among its shareholders.
If that policy says the 50% payout should be split between a cash dividend and share buybacks, the formula is:
Payout = (cash dividend + share buyback)/underlying net profit. The payout is expressed as a percentage.
Remember, a dividend is cash paid to shareholders for their share in the company's profits. A share buyback and the subsequent cancellation of shares are when the company “buys back” its own shares to reduce outstanding share capital and increase its share price.
Why do payouts matter to shareholders?
The payout is an indicator that influences an investor’s decision to buy shares in a company. It shows what share of the company’s profits will be paid to shareholders, whether in a cash dividend, a share buyback or both.
What does this mean?
A payout policy can also help attract more long-term investment in a listed company. But the company must find the right balance between shareholder returns and reinvesting in its own long-term growth. A payout gives substance to shareholder remuneration policies, which influence investors’ decisions.
Santander’s payout
INTERIM CASH DIVIDEND
€11.5 cents per share
Paid in November 2025
FIRST BUYBACK PROGRAMME
≈€1,700 mn
In application of the shareholder remuneration policy, the board of directors approved the first remuneration cycle charged against 2025 results, which will be made in two parts:
- The payment of an interim cash dividend against 2025 results of €11.50 cents per share, equivalent to c.25% of the Group’s underlying profit in H1’25, 15% higher than its 2024 equivalent, which was paid in November 2025. Including the €11.00 cent dividend per share paid in May 2025, the cash dividend per share paid during 2025 has been 15% higher than that paid in 2024.
- A share buyback programme against 2025 results of up to €1.7 billion, which commenced on 31 July 2025 once the applicable regulatory approval had been obtained.
This programme puts us on track to reach our goal to distribute at least €10 billion through share buybacks charged against 2025 and 2026 results and against expected capital excess*.
Total shareholder remuneration charged against H1’25 results will be approximately €3,400 million, 11% higher than the remuneration charged against H1’24 results. The amount is approximately 50% of H1’25 attributable profit (around 25% through cash dividend payments and around 25% through share buybacks).
At the end of the quarter, TNAV per share was €5.56. Including the final cash dividend against 2024 results and the interim cash dividend charged against 2025 results, TNAV per share increased 15% year-on-year.
*As previously announced, Santander intends to allocate at least €10bn to shareholders through share buybacks charged against 2025 and 2026 results and against the expected capital excess. This share buyback target includes i) buybacks that are part of the existing shareholder remuneration policy; and ii) additional buybacks following the publication of annual results to distribute year-end excesses of CET1 capital. The implementation of the shareholder remuneration policy and additional buybacks are subject to future corporate and regulatory decisions and approvals.
