Investing.com -- Shares of Millicom International Cellular S.A. (NASDAQ:TIGO) climbed 11% following the announcement by the company’s Board of Directors of a new shareholder remuneration policy, which includes the resumption of regular cash dividends. The telecom operator, which focuses on the Latin American market, stated its intention to sustain or grow cash dividends annually and to maintain a prudent capital structure with a long-term leverage target range between 2.0 and 2.5 times.
The Board’s decision reflects a strategy to return capital to shareholders through the cash flow generated by the company, while taking into account the capital-intensive nature of its business and the heightened political and economic uncertainties in Latin America. The announcement comes after Millicom paid an interim dividend of $1.00 per share on January 10.
Looking ahead, Millicom plans to pay an additional interim dividend of $0.75 per share in April 2025, following the publication of its fourth-quarter 2024 results. Moreover, the Board intends to propose a dividend of $3.00 per share at the Annual General Meeting scheduled for May 21, 2025, in Luxembourg. If approved, this dividend would be distributed in four equal quarterly installments over the following year.
The news of dividend resumption is a significant move for Millicom, as it signals confidence in the company’s financial stability and its commitment to providing shareholder value. The company’s approach to balancing shareholder returns with maintaining a strong balance sheet amidst the volatile Latin American market has been well-received by investors, as evidenced by the stock’s positive performance in the trading session.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.