Some investors approach the stock market with an eye on the dividends that the companies distribute. For them, today we offer 10 stocks in the IBEX 35 –the main Spanish index- with higher dividends.
Notice that the percentages that we offer here may change with time, and they could be different when you read them.
Mediaset
Mediaset dividend is above 8%, a very nice figure if the stock price would also behave well. This company owns five popular TV channels in Spain. Though it is an Italian company, it is in the IBEX 35. Its PER is around 10.50.
Ence
Ence distributes dividends of more than 6.5%. The PER is an interesting 7.8. The company transforms cellulose for industry purposes. It seems interesting, considering the European Union war against plastics and the idea of a Circular Economy.
Repsol
Repsol stock has been suffering lately, but its dividend is slightly above 6.5%. The company is giving good financial news. But since the stock is not going with it, we could follow the conspiracy theory and believe there is a skeleton in the cupboard. We do not know, but you should be careful with stocks with good news that go down.
Endesa
Endesa’s dividend is over 6%. The company is Spanish, but the main owner, Enel, is Italian. It produces, distributes, and sells electricity and natural gas. The behaviour of electricity companies’ stocks lately is quite good. Its PER is around 16.00.
Enagas
Enagas: This company has also had good behaviour in the last weeks. Its dividend is above 6%, and the PER is around 14.50. The company’s main activity is natural gas transportation. The Sovereign wealth fund, SEPI, controlled by the Ministry of the Treasury of Spain, has 5% of the shares.
Sabadell
Sabadell dividend is close to 6%, but it does not reach it. The company is a bank, andnowadays European banks are a dangerous bet. Their prices are going down strongly. On the other hand, it is true that this fall has to stop at some point.
IAG
IAG is the owner of IBERIA (those lovely guys that always go on strike when you want to go to Mallorca). The dividend is well above 5.5%, and the PER is very interesting at 4.70. The stock has gone down from June 2018, making it a very dangerous option. You should wait until the stock shows some evidence of a trend change.
Mapfre
Mapfre is a well-known insurance company that distributes a dividend that is also well above 5.5%. The PER is around 10.30. However, the stock has not had very good behaviour since 2017.
Caixabank
Caixabank is another bank with a nice dividend of more than 5.5%, but it has the same issues as almost all European banks. There’s not much to say. When the banks start to rise, it could be a good option.
Acerinox
Acerinox’s main activity is the production of stainless steel. The dividend is also above 5.5%, and the PER is around 11.50. It has experienced an important slope since October 2018.
Things to Be Aware of
We do not recommend investing just because a stock has a nice dividend. The experts say that the market has already discounted the dividends in the current price. Besides, a company can change its dividends policy at any time. And what is a nice dividend now, might possibly be nothing tomorrow.
Lastly, remember that the companies with a higher percentage of dividends can be on the list simply because the stock price has been going down a lot in the last month. Thus, it is always recommended to check the trend of the stock and do not invest in stock in a negative one.
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