Santander Bank plans a significant increase in its dividend payouts by 2028, as part of a broader strategic initiative. The bank intends to raise its dividend to 48 cents per share, an increase from the current 24 cents slated for 2025, targeting a payout that will ultimately yield a dividend yield of 4% for shareholders. This move is expected to attract more investors by showcasing the bank’s commitment to returning value to its shareholders.

However, alongside this increase in dividends, Santander plans to reduce its stock repurchase program, which currently stands at a record 3.5 billion euros. This shift indicates a strategic pivot where the bank prioritizes direct cash returns to shareholders over repurchasing shares, which is often seen as a technique to boost share prices. By 2028, the total cash distributed in dividends is projected to hit 7 billion euros, indicating a robust financial outlook for the bank.

This proposed dividend increase reflects Janeiro's confidence in achieving improved net results as part of its strategic restructuring. By promising higher dividends while also planning to reduce share repurchase levels, the bank is actively re-aligning its financial strategies to benefit long-term shareholders, despite a current low dividend yield of 2%. Such measures are likely to stimulate market interest and support the overall financial performance of the bank in the coming years.