Dividends
The Board of Directors and management consider an constant and stable dividend to constitute a key element of MTS’s investment attractiveness and shareholder return.
As a leading telecommunications group operating in rapidly developing, yet volatile, markets, MTS’s primary need is to maintain sufficient resources and financial flexibility to meet our financial and operational requirements. As demonstrated throughout our history, MTS continually seeks ways to create shareholder value through both commercial and financial strategies, which may include both organic and inorganic development as well as the Company’s capital management practices.
Following historical practice, MTS continues to pay dividends as part of our commitment to enhancing shareholder value. In determining the Company’s payout, the Board of Directors considers a number of factors, including cash flow from operations, capital expenditures and the Company’s debt position. Decisions on dividends are proposed by the Board of Directors and voted upon thereafter at an annual general meeting of shareholders (AGM) or extraordinary meeting of shareholders (EGM).
In April 2024 MTS’s Board of Directors approved a dividend policy for 2024–2026 that will set a target dividend yield of at least RUB 35.0 per ordinary share of PJSC MTS stock during each calendar year. The new dividend policy will call for the payment of dividends once a year with the possibility of changing the frequency of dividend payments during a calendar year upon the recommendation of the Board of Directors. When determining its dividend payments, MTS will take into account a number of factors, including its cash flow from operating activities, capital expenditures and debt position. In April 2024 Board of Directors recommended that the Annual General Meeting of Shareholders approve the payment of dividends in the amount of RUB 35.0 per MTS ordinary share, equivalent to a total of RUB 68.6 bn*, based on the Company’s full-year 2023 financial results, and the following decision was made by shareholders in June 2024. The record date for shareholders entitled to receive dividends for the 2023 fiscal year was July 16, 2024.
Regular Dividend History
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020** | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total regular dividends announced and paid out*, RUB bln | 15.1 | 19.3 | 29.6 | 39.4 | 30.7 | 30.0 | 30.4 | 41.0 | 51.2 | 52.0 | 52.0 | 52.0 | 52.0 | 57.3 | 58.9 | 74.1 | 66.3*** | 67.2*** | 68.6*** |
| Regular dividends per share, RUB | 7.6 | 9.7 | 14.8 | 20.2 | 15.4 | 14.5 | 14.7 | 19.8 | 24.8 | 25.2 | 26.0 | 26.0 | 26.0 | 28.66 | 29.50 | 37.06 | 33.85 | 34.29 | 35.0 |
*Total calculated sum includes dividends for quasi-treasury shares owned by MTS subsidiaries and may differ from net annual cash flow for dividend payments as reflected in the Company’s financial statements.
** Excludes a special dividend paid in Q1 2020 based on the Company’s 9M 2019 financial results and taking into consideration the sale of foreign subsidiary amounting to RUB 13.25 per ordinary share (in total RUB 26.5 bn).
*** The amount of accrued dividends, the actual payments may differ on the back of termination of ADR program.
Regulation on Dividend Policy