By Pietro Lombardi

Banco Santander SA (SAN.MC) plans to raise its dividend payout to a range of between 40% and 50% in the medium term and wants keep the portion of dividend it pays in cash at least at last year's level.

The increase in payout compares with the current 30%-40% range, the Spanish bank said late Tuesday.

The move is to "to align ourselves with our European peers' current practise," it said.

"The board has decided to propose to shareholders to retain the option to use a scrip dividend," the lender said. It said it could launch a share buyback.

"These proposals will provide the board with the required flexibility to determine whether or not to use these mechanisms, depending on the group's performance and its progress against the targets set," the bank said.

Banco Santander said its shareholder meeting will take place in the second week of April.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

February 27, 2019 02:17 ET (07:17 GMT)

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