Magyar Telekom, Hungary’s leading telecommunications group, will start dividend payment on 25 May, after the Annual General Meeting approved a HUF 25 dividend per share.
The record date related to the dividend payment is 15 May.
Shareholders shall be entitled to dividend who own Magyar Telekom shares at the record date and requested to be registered in the Share Register of the Company.
The last day when shares can be bought on the Budapest Stock Exchange (BSE) that will be entitled to the dividend paid for the 2017 business year is 11 May.
In line with the lapse period specified in the Civil Code the dividend for the business year 2017 can be collected for a further 5 years, starting from the first day of the dividend payment (i.e. not later than 25 May, 2023).
The dividend will be transferred to shareholders’ accounts - attached to securities accounts at the account-keepers, or to another bank account specified by the shareholder to its account keeper - from 25 May.
The dividend can only be transferred if the account keeper sends all information in the specified form to clearance house KELER, acting as agent for the dividend payment of MTel. If the account keeper does not submit the data relating to the shareholder, required for dividend payment, in the course of the recording process to KELER Ltd., but at a later date, then the company will transfer the dividend through KELER Ltd. once in a month, by the 5th working day following the month of the reporting.
Dividends paid for business year 2017 are subject to a personal income tax of 15%, except for equities entitled for dividend payment (in present case shares) held on long term investment account and recorded in the register of time deposits. Based on the information provided by the credit institutions or investment firms where the account is held, dividend payments will be transferred to the individual shareholders without the deduction of personal income tax.
At the current share price the HUF 25 DPS gives us a dividend yield of 5.5%.