What is the "Iberdrola Retribución Flexible" system?

All the information about the optional dividend system

“Iberdrola Retribución Flexible” is Iberdrola’s optional dividend system that allows shareholders to choose how they wish to receive their remuneration among three options:

  • i. Receive new fully paid-up shares of “Iberdrola, S.A.” (the “Company”).

  • ii. Sell their free allocation rights on the market.

  • iii. Receive their remuneration in cash through the payment of a cash dividend.

This system is implemented through a capital increase charged to reserves and the payment of a cash dividend. All shareholders receive one free allocation right for each share they hold on the record date, and those wishing to receive the cash dividend must expressly waive these rights.

In the first edition of the optional dividend “Iberdrola Flexible Remuneration” for 2026, which will be implemented during the month of July, shareholders who choose this option will receive a total supplementary dividend of €0.427 gross per share in cash. This amount is aligned with the so-called “target dividend”, which is the gross target amount per share that the Company considers appropriate to distribute in this edition in order to comply with its Shareholder Remuneration Policy and promote long-term value creation.

Shareholders may combine any of the options with respect to different groups of shares they hold. The value of the remuneration received by shareholders under options (i) and (iii) above will be equivalent, regardless of the chosen option, in terms of market value and without prejudice to tax treatment. If the shareholder does not communicate their choice within the established period, the default option will be to receive newly issued fully paid-up shares.

Regardless of the option chosen by shareholders, if the amount of the supplementary dividend resulting from the calculation formulas approved by the Company is lower than the target dividend, the Company will pay all shareholders an adjustment dividend in cash for the difference, so that the total remuneration per share is aligned with the target dividend. On the contrary, if the supplementary dividend is equal to the target dividend, no adjustment dividend will be paid. The applicability of the adjustment dividend and, where applicable, its amount will be communicated to the market on July 2, 2026, through a supplement to the information document for this edition.


Practical example without Adjustment Dividend Practical example with Adjustment Dividend