Friday, February 3

Rain of dividends of 1,300 million in the Spanish stock market

The rain of dividends continues. In the first weeks of the year, almost 3,000 million euros were distributed, to which must be added the 1,300 million euros that will be distributed next month hand in hand with five listed companies.

Iberdrola will lead the February shareholder remuneration. The company will pay 0,17 euros per share, and which will pay the next February 1st. Although the modality of this dividend would be in scrip. In this way, the investor has time to choose whether the payment is in cash or one share for every 60 old shares. The announcement represents an improvement of 1.2 percent on the previous payment of 0.168 euros that was paid in October.

This interim dividend for the 2021 financial year would not be the only. The utility will complete the payout with the complementary payment that it plans to pay in July, if approved by its general meeting of shareholders, and that the Bloomberg consensus estimates at 0.26 euros per share. According to analysts, the company’s dividend yield would stand at 4.23 percent.

ACS and Sacyr dividends also in February

He too February 1, the payment will be made to the ACS shareholder. The board of directors of the construction company approved the payment of a dividend to choose between new shares or in cash of 0.473 euros per share. Whoever opts for the first option must be aware that the new shares will not be listed until February 17.

To meet this payment, the meeting approved an increase of 148 million euros in the event that all shareholders opt for new shares. The dividend will be paid out of voluntary reserves. Cash amounts to 2,542 million euros and allows the dividend yield to be placed at 7.7 percent.

For its part, Sacyr will pay a flexible dividend charged to the 2020 financial year of 0.049 euros in cash per share or one new title for every 45 old ones in case of choosing the ‘scrip dividend’ option. For this last option, a capital increase of 13.98 million euros was agreed.

This new dividend improves by 17 percent the amount paid last year for these dates (0.042) and succeeds the one paid last June, of 0.054 euros, adding a total shareholder remuneration of 0.096 euros per share in 2021. The dividend yield, according to Bloomberg, amounts to 4.5 percent .

Others dividends in the continuous market

As with Sacyr, several payments are also planned in the continuous market aimed at improving shareholder remuneration. One of them will come from the hand of Glass. The company plans to pay 0.843 euros per share on February 15, which places the dividend yield at 1.51 percent.

Confirmed is also the dividend that will distribute Logista next February 24, for an amount of 0.83 euros. This is the complementary payment charged to the 2021 result (the interim dividend was delivered in August, for 0.41 euros).

Importance of dividends for the investor

The importance of dividends becomes even clearer if we look at the long term, explains Hans-Jörg Naumer, equity expert at Allianz Global Investors.

The expert recalls that “dividends provide stability to many portfolios, especially in years with negative price trends, as they can fully or partially offset falls.”

What numbers are we talking about? For the expert in the period from 1976 to the end of 2021, about 34 percent of total stock returns here were attributable to dividends. What’s more, there is a difference of 10 basic points of return between companies that pay attention to shareholder remuneration and those that do not.

For the expert it is an alternative to fixed income. In addition, in the Spanish case it becomes more important since, according to the Spanish Stock Exchange and Markets (BME), shareholder remuneration increased by 4.7 percent until November (just over 17,000 million euros).