Last update: 06/03/2026
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
Charged to the results for the second half of 2025, the Board of Directors has approved:
- The implementation of a share buy-back programme for an approximate amount of €5,030 million, for which the Bank has already obtained the necessary regulatory authorization and is currently underway. In line with the Bank’s current shareholder remuneration policy, €1,830 million corresponds to an amount equivalent to approximately 25% of the Group’s net attributable profit (excluding non-cash, non-capital ratios impact items) for the second half of 2025. The remainder of the programme relates to an extraordinary share buy-back of €3,200 million, representing approximately 50% of the CET1 capital generated following the completion of the sale of 49% of Santander Bank Polska to Erste Group. You can find all the information about the share buyback program here.
- Submit to the 2026 Annual Shareholders’ Meeting, in application of the Bank’s shareholder remuneration policy, the approval of the payment against 2025 results of a final gross cash dividend of €12.50 cents per share entitled to receive dividends. Subject to the approval of the 2026 Annual Shareholders’ Meeting, the dividend would be payable from 5 May 2026. Thus, the last day to trade shares with a right to receive the dividend would be 29 April, the ex-dividend date would be 30 April and the record date would be 4 May.
Charged to the results for the first half of 2025, the Group carried out the following:
- A payment of an interim cash dividend of €11.50 cents per share, paid in November 2025, equivalent to c.25% of the Group’s net attributable profit in H1 2025 (excluding non-cash, non-capital ratios impact items), 15% higher than its 2024 equivalent.
- The first share buyback programme of €1.7 billion, carried out between 31 July 2025 and 23 December 2025.
Total shareholder remuneration charged against H1 2025 results was €3,399 million, 11% higher than the remuneration charged against H1 2024 results. The amount is approximately 50% of H1 2025 net attributable profit (around 25% through cash dividend payments and around 25% through share buybacks).
