Saturday, February 24

The best dividends of the Spanish banking


The Spanish banking does not rest. To war they keep on mortgages, especially at a fixed rate, is now added the dividend. BBVA, the last financial institution to publish results, has announced the payout (the percentage of a company’s profits that go toward dividends) 44 percent.

This announcement has not been the only one. Banco Santander, but also Caixabank and Banco Sabadell have issued communications indicating the percentage allocated to shareholder remuneration, although in the case of the entity chaired by Ana Botín the percentage is somewhat lower than that of the rest of its competitors.

The financial sector recovered the dividend in September 2021, when the European Central Bank (ECB) ended the prohibition of shareholder payments to avoid endangering the solvency of the banks as well as for them to dedicate all their efforts to palliate the consequences the crisis caused by the coronavirus in the small economy.

Stoxx 600 Bank’s trailing twelve month dividend yield is 3.06 percent. However, Spanish banks far exceed this percentage. In addition to the cash payment, the repurchase of shares will be taken into account. It is expected that this year a record remuneration is expected from European financial institutions with a disbursement of almost 30,000 million euros.

BBVA, a pay out of 44 percent and the highest dividend in ten years

BBVA, which has multiplied by 3 the benefits of 2020 to exceed 4,600 million euros, has announced a payout of 44 percent and the repurchase of shares. In this sense, Bankinter analysts recall that the total dividend of the entity chaired by Carlos Torres Vila will be 0.31 euros per share after the payment of 23 cents to be made in April.

This payment will allow the dividend yield to be increased by 5.3 percent at current prices.

As for the share repurchase program, it will amount to 3,500 million euros, which represents around 9 percent of the capital.

Pay-out of up to 60 percent and profitability of 5 percent

caixabank is one of the entities that have bet heavily on the dividend. Next April, the entity will distribute a dividend of 0.1463 euros corresponding to the 2021 financial year, this yields a dividend yield of 5.03 percent.

Caixabank gave the surprise in the summer of last year when it recovered the pay out of 50 percent. For the 2022 financial year, the percentage will range from 50 to 60 percent, a percentage that will also be achieved through a share buyback program.

For its part, Bankinter has also reiterated its commitment to distribute 50 percent of its profits as dividends. The market expects the entity chaired by María Dolores Dancausa to distribute 0.065 euros in March.

This payment will allow the entity to offer a dividend yield of 4.37 percent, the third highest within the Spanish financial sector.

Banco Sabadell and Banco Santander close the list

Sabadell Bank beat results and will allocate 30 percent to dividends. The entity will distribute 0.03 euros per share in April in charge of the results of 2021, when it earned 530 million. This is the first payment to the shareholder since the complementary payment of April 2020.

Thus, the entity’s dividend yield stands at 4.02 percent.

For its part, Banco Santander announced that it will allocate 40 percent of profits to dividends and share repurchases, a somewhat lower percentage than the rest of the large Spanish banks, the same percentage as in 2021.

Botín did not disclose how much the complementary payment for 2021 will be, but announced that it will be in the coming weeks. At the moment, the dividend yield stands at 1.51 percent, below the European average.



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