At the moment, one of the hottest stocks in Spanish equities is undoubtedly Iberdrola. Not in vain, the Electric company The Spanish company has decided to launch a takeover bid for the Brazilian distributor Eletropaulo. With the aim of buying between 51% and 100% of the shareholding. In this sense, the Brazilian power company Neoenergia, 52,45% owned by Ibedrola, wants to acquire the Rio de Janeiro distributor Eletropaulo with a investment of between 504 and 1.007 million euros. A fact that is asking a good part of the small and medium investors to decide whether to enter or undo positions in this value of the national selective index, the Ibex 35.
Iberdrola's reaction has not been long in coming in the financial markets. In this sense, Iberdrola shares have risen at the news, although they have risen very moderately. To the point of appreciating about half a percentage point to stand at 6,25 euros per share. It must be remembered that the accumulated of the year of the electricity company directed by Ignacio Sánchez Galán is not entirely positive. To the point of depreciate about 1,50%. Although it is not one of the values that fell the most in the first of the year, especially if one takes into account that the evolution of Spanish equities in this period is not being as expected. With a depreciation of more than 5%.
On the other hand, from the Spanish power company of reference it is revealed in a statement to the National Securities Market Commission (CNMV) the level of the operation. Explaining that it has committed to launching a takeover bid for buy between 51% and 100% of the capital by Eletropaulo. This corporate event would represent a disbursement of between 2.134 and 4.269 million reais. Or what is the same, between 504 and 1.007 million euros. Another very different aspect is how investors will interpret this new operation by Iberdrola. Although at the moment, the movements are not very high in terms of intensity.
Iberdrola: very stable value
If there is something that characterizes the shares of this electric company, it is because of the stability in the price of its shares. They have long been located in a very narrow margin around the levels of 6 euros per share. From this scenario, its volatility is not one of its most relevant common denominators. Quite the contrary, since in a way it is one of the most boring values of the Ibex 35. Because its price variations are not really very noticeable.
In addition, the electricity company is one of the most conservative values in the selective index of national equities. Especially because it maintains a certain stability with respect to their share prices. In recent years they have moved in a range that goes from 5,50 euros to 6,50 euros. With hardly any sudden changes in them. Something that is very popular with the most defensive investors. In this sense, they seek more the security of their savings over other more aggressive strategies. As in general, they offer a good part of the proposals from this important sector of the Spanish stock market.
5% dividend yield
Another of its most relevant attractions lies in the dividend it offers to its shareholders. In this sense, Iberdrola generates an interest for this concept of 4,81%, one of the highest in Spanish equities. Through a payment that materializes twice a year and that will go to your checking account in the days of its implementation. On the other hand, it is one of the strategies that you can use from now on to open positions in this security, which is one of the preferred by small and medium investors.
Another of the most important aspects of this value is that Iberdrola is one of the blue chips from the national stock market. In this way, it attracts a large part of the large capitals, both national and outside our borders. To the point that its shares are also included in the Eurostoxx, the most important index of equities on the old continent. Something that interprets that it is one of the most followed values in this geographical area. With a hiring volume of the highest that you can find at the moment. So that it gives you greater security in the positions that you are going to open from the next few days.
Its production in Spain rises
In Spain, production grew by 3,2%, up to 16.091 gigawatt hours, thanks also to the greater contribution of renewables. As one of the largest contributions that this electricity company generates, it made with investors. On the other hand, production with clean energy increased by 14,8% globally and the most notable increases corresponded to offshore wind (86,9%) - due to the connection of the Wikinger park in Germany - to onshore wind (19,1%) and hydroelectric (6%).
Another of the strengths of the value is that it is a stable business model with recurring income that helps to maintain very satisfactory price levels for all investors. It is true that it is a value with which you will not become a millionaire, but at least you will have the assurance that you will keep the savings with a certain stability. Not surprisingly, its deviations are minimal, both in one sense and in the other. Being aimed at a very well defined investor profile. That is, a person who wants to preserve their capital with some revaluation and who also provides you with a dividend yield very close to 5%.
As a refuge value
Another aspect that you should value at Iberdrola is that it can become a safe haven value, like all electricity companies, in the most unfavorable moments for equity markets. Among other reasons because its behavior in the market is frankly better than in the rest of the stock market proposals. Being one of the bets where a good part of the investors' capital takes refuge. Because they will be sure that their shares will not suffer very vertical declines. After all, a fear that a good part of stock market users harbor when they enter the financial markets.
On the other hand, it is also very relevant that stocks of this value are at a time when you are trying exceed levels of 6,60 euros per share. And that constitutes one of its main resistances that it has ahead. Not surprisingly, if he surpassed it, he would have a clear path to close to seven euros per share. Although its revaluation potential is not one of the most powerful of the selective index of the Spanish stock market. As is the case with almost all securities in the Spanish electricity sector. With more modest objectives than in the rest of the sectors.
Large volume of recruitment
Its high volume in the exchange of securities constitutes one of the most recurrent common denominators. To the point that every day many titles pass from one hand to another. With a complete liquidity in their positions that allows you to enter, but above all to leave, without any problem for your interests as a small and medium investor. Many titles are contracted every day and this is a factor that you should value very positively in the shares of this value in the electricity sector. Above other technical and perhaps even fundamental considerations.
When talking about Iberdrola, you cannot forget that it is a security that is followed by many brokers and this allows it to be hired by many more investors than in other securities with less operation in the financial markets. With punctual reviews of their prices and the recommendation by these intermediaries. That is, they will tell you if it is a good time to buy or sell their shares. With what they will facilitate the investment strategy at all times. With a wide range of technical and fundamental analysis that will be of great help to you to channel your savings with greater protection in the movements.
In any case, it is a very correct choice if you want to be calm for a while. They are even the need to be aware of their quotation in the markets every day. While on the other hand, it is very important that you do not direct your operations with this value in the short term. But rather through long-lasting operations where you can get a return on your savings. Plus the money accumulated through the dividends that you have received through the years of permanence. All this by means of a rather conservative or defensive investment strategy to make effective the profitability of the patrimony. Above other technical considerations and maybe even from the fundamental point of view on the part of the company's situation.