Banks use share buybacks to offset the dilutive effect of scrip dividends

FinanceInternationalTradingViewOct 21, 2026, 11:51 PM35 s readAI summary

After the financial crisis, banks adopted the scrip dividend, a formula allowing capital increases to deliver shares to those who do not request the cash dividend, as a way to keep rewarding shareholders. The problem is its dilutive effect: the rise in the number of shares reduces earnings per share. According to the text, the practice disappeared years ago and now institutions such as CaixaBank and BBVA are pushing share buybacks with record profits and ample capital buffers.

In 35 seconds

The scrip dividend allowed capital increases to deliver shares to those who did not request the cash dividend.
Its dilutive effect reduced shareholders' earnings per share.
The practice disappeared years ago, according to the text.

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IASummary generated by artificial intelligence from a story by TradingView. It may contain errors: the original source prevails.

banca
dividendos
recompras de acciones
CaixaBank
BBVA

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Banks use share buybacks to offset the dilutive effect of scrip dividends

In 35 seconds

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Keep reading

IMF backs economic rescue bill as Banco de la República calls for rigor in its review

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