SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of May, 2005

Commission File Number 1-13758
 
 

PORTUGAL TELECOM, SGPS, S.A.
(Exact name of registrant as specified in its charter)
 

Av. Fontes Pereira de Melo, 40
1069 - 300 Lisboa, Portugal
(Address of principal executive office)
 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____

PORTUGAL TELECOM, SGPS, S.A.
 Public Company
Head Offices: Av. Fontes Pereira de Melo, 40 – 1069-300 LISBOA
Company Registration number 503 215 058
Share Capital: Euro 1,166,485,050
Registered in the Conservatory of the Commercial
Registry of Lisbon under number 03602/940706, Section 4


DIVIDEND’S PAYMENT FOR 2004


In accordance with Portuguese legislation and pursuant to the resolution of the Shareholders’ Meeting of 29 April 2005, Shareholders are hereby informed that the following 2004 dividends will be paid on 27 May 2005, as set out below:

1.  Privatised ordinary shares:   
 
                   Resident Shareholders   
                               Gross dividend 
Euro 0.35000 
                               Withholding Tax (IRS/IRC) (7.5%) (a) 
Euro 0.02625 
                               Net Dividend 
Euro 0.32375 
 
                   Non-Resident Shareholders   
                               Gross dividend 
Euro 0.35000 
                               Withholding Tax (IRS/IRC) (12.5%) (a) 
Euro 0.04375 
                               Net Dividend 
Euro 0.30625 
 
(a)   Resulting from the application of the fiscal benefit referred to in article 59 of the Statute of Fiscal Benefits. 
 
 
2.  “A” Shares owned by the Portuguese State and which have still not been privatised: 
 
                               Gross dividend 
Euro 0.3500 
                               Withholding Tax (IRS/IRC) (15%) 
Euro 0.0525 
                               Net Dividend 
Euro 0.2975 

Payment will be made through the Securities Clearing House pursuant to the terms of article 53 of the Regulation no. 3/2000 and Circular no. 1/2000 of Interbolsa.

The ex-dividend date is 24 May 2005 and the record date is 26 May 2005.


Lisbon, 6 May 2005


PORTUGAL TELECOM, SGPS, S.A.

 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 6, 2005

 
PORTUGAL TELECOM, SGPS, S.A.
By:
/S/  Nuno Prego
Nuno Prego
Investor Relations Director
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.