Telefónica establishes the shareholder remuneration policy taking into account the Group's earnings, cash generation, solvency, liquidity, flexibility to make strategic investments, and shareholders and investors’ expectations.

In the last 10 years, Telefónica has combined different types of remuneration to the shareholders, such as dividend in cash, "scrip dividend", or share buyback program and amortization of treasury stock, payable in different tranches each year.

As of March 2017, the Board of Directors of Telefónica, S.A. defined the payment period for the annual dividend, so that the dividend payment in the second quarter will take place in June, and the dividend payment in the fourth quarter will take place in December, in both cases on or before the third Friday of the corresponding month.

On February 2019, the remuneration policy for 2019 was announced, and consisted on the payment of 0.40€ per share in cash, payable in December 2019 (€0.20 per share), and in June 2020 (€0.20 per share). On February 2020 the remuneration policy for 2020 was announced and will be the payment of 0.40 € per share, to be paid in December 2020 (€0.20 per share) and in June 2021 (€0.20 per share) (*).

(*) The adoption of the corresponding corporate resolutions will be proposed in due course, announcing the specific payment date.