Dividends are so important when it comes to investing in the stock market that their average revaluation Ibex 35 offers a compounded annual return of 7.95% over its 30 years with dividends of history, four points higher than the collection of prices only in IBEX 35.
“The evolution of the index over these 30 years recalls the significant and stable profitability that the stock market provides over the long term. Over the years, the combined effect of diversification and reinvestment of dividends has a positive effect on the portfolio,” Bolsas y Español Markets (BME) said in a statement.
Spanish stock market companies paid 25,964.47 million euros in 2022, up 26.8% as compared to 20,474 million registered a year ago. It is also the highest figure since 2019, when it crossed 31.7 billion euros, according to BME data.
This was an increase of 38.7% compared to 2020, a year in which dividends were reduced to €18,709 million due to a veto on the distribution of dividends imposed on banks by the European Central Bank (ECB) and cuts to shareholder remuneration for discretion. The face of the Covid-19 crisis.
Shares with stable dividend and 50% upside potential on the stock market
In the case of the Ibex 35, There are nine companies with a dividend yield of more than 6%, A figure that is more than double the Spanish ten-year fixed income and is also more than double the general consumer price index (CPI) of the Spanish economy in March, which stood at 3.3%.
Specifically, Socimi Merlin Properties’ dividend yield is 13.58%, Enagás 8.95%, Mapfre 8.4%, Telefónica 7.7%, BBVA 7.1%, Acerinox 7.%, ACS 6.1% and Redeia (REE) 6.1%.
Merlin Properties tops dividend yield list after paying extraordinary payout €0.75 per share Last 18 August. With this amount, he sought to remunerate the shareholders of the company after selling the unit to BBVA offices for around 2,000 million. The dividend over the last twelve months is 1.4195 Euro per share.
Dividend yield is a financial ratio widely followed by the market that relates a company’s payout and share price over the past year, so the percentage can be increased if the stock falls and the dividend is maintained. Among the stocks with the highest dividend yield and which performed best on the stock market, Enagás with 17.84%, BBVA with 17.68%, ACS with 16.56%, Telefónica with 15.83%, Acerinox with 10.53% and 3.26% Mapfre is.
Another ratio to keep in mind is to know the dividend of companies ‘pay-out’, which is the percentage of profit distributed in dividends, It is also pertinent to know the level of indebtedness, cash flow, earnings per share (EPS) and dividend history to gauge whether the payouts are sustainable over time. See the overall ranking of dividends on the Spanish stock market
enlisted |
dividing |
annual variation |
per 2023 |
|
Merlin Properties |
13,58% |
-10,06% |
14,62x |
|
anagas |
8,95% |
17,68% |
15,65x |
|
mapfre |
8,4% |
3,15% |
7.99x |
| telefonica | 7,7% | 15,92% | 11.80x |
| BBVA | 7,1% | 17,38% | 5,87x |
| acerinox | 7% | 10,37% | 7,14x |
| ACS | 6,1% | 16,49% | 15,02x |
| Radia (REE) | 6,1% | 2,88% | 13,46x |
See the full table of all Ibex 35 and Sustainable Markets dividends
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