The electricity sector is one of the most important in Spanish equities and within it there is no doubt that Iberdrola is the company preferred by a large number of financial analysts. It offers an excellent relationship between profitability and risk that is very suitable for more defensive users or conservatives. Of course, with the purchase of their shares you will not be able to become a millionaire overnight. Of course not. But in return, it will generate a greater stability in the positions you have open. Whatever the investment strategy you have decided to take from now on.
Iberdrola, together with Endesa and Gas Natural, are the heavyweights of the sector. But with some subtle differences that should be analyzed to understand a little more the evolution of its shares in the benchmark index of the Spanish stock market, the Ibex 35. With a target price at the moment that is located very close to the important levels that has in the $7 the action. In this way, it still has a long way to go since it has a growth potential that ranges between 5% and 10%, depending on the financial analyst in charge of analyzing its position in the financial markets.
It is a purchase option that should not be lacking in any investment portfolio. Because it does not offer great scares to the investor, as it happens with others pointer values of the national stock market. In this sense, the shares of this listed company have moved between 5 and 6,50 euros during the last five years. But in a slow, silent way and make excessive noises. This is, after all, Iberdrola, and you should keep it in mind for both the good and the bad. Being, in any case, one of the blue chip values of domestic equities. That is, one of the largest capitalization since it moves many titles in all trading sessions.
Iberdrola: the best electric
If this important value has been characterized by something, it is because it is one of the most recommended in its sector. To the point that it is present in all pools by the reputed analysts of the sector. This is a factor that must be taken into account from now on if the desire of small and medium investors is to enter the stock market to make their personal assets profitable. In this sense, you cannot forget that it is a stock exchange proposal that does not offer excessive surprises every year. If not, on the contrary, it is very predictable for all intents and purposes.
On the other hand, the electricity company happens to be one of the favorite options to maintain positions in the medium and long term. No loopholes for the most speculative operations in the financial markets. Not surprisingly, they generate great peace of mind for investors who are already positioned in their shares. There are no risks of major crashes, not even very vertical declines in its price. Where security prevails over the desire to increase capital through the stock market. With a very stable line of business from all points of view and that is something to consider when investing.
5% return on dividends
Another of the most interesting aspects of Iberdrola is that it offers an interest close to 5% in the distribution of dividends to its shareholders. What makes the company one of the more profitable of national equities. From this general scenario, it should not be missing in the portfolio of savers who seek security over other considerations. Because in this sense, it is an original idea to create a fixed income plan within the variable. Regardless of how stocks may evolve in the equity markets. With an interest rate higher than that of the main banking products (time deposits, promissory notes or high-income accounts).
In short, you cannot forget that Iberdrola shares are registered in one of the sectors that most benefited from the dividend. In all the years, he executes them twice, once the first days of the year and the rest with the start of the summer holidays. In any case, it is charged as a charge to the current account of its holders and not under a gross amount. If not, on the contrary, it is a net credit, in which taxes are directly deducted. It is a factor that is unknown to a large part of the shareholders of this electricity company. With one of the best performance of the securities listed on the equity markets.
It is a defensive value
This is a company that is immersed in one of the most conservative segments of the national stock market. Where medium and long-term operations predominate over those of less permanence. Because indeed, it cannot be forgotten that Iberdrola is not a value for making a lot of money. If not on the contrary, for encourage savings above other more aggressive strategies. It is like maintaining a savings bag that is giving a return little by little and without excessive fanfare in the results.
On the other hand, this electric company operates under very narrow margins that are not adapted to trading operations. If not the opposite, it is to maintain positions for many years. As many as the investor himself wishes. From these approaches it is possible to take positions in the value, either from aggressive operations or on the contrary with a much more defensive cut. In any case, it is a proposal on the stock market that rarely should be lacking in order to really develop an investment portfolio balanced and diversified.
Dividend increase
One of the novelties that this company presents is that over the next few years it will increase its dividend yield. To the point that it can reach no less than 6% and surpassing other competitors within the electricity sector. As a consequence of its calculated business strategy that can lead it to be one of the most profitable companies at the national level. With a share profit that is one of the most interesting at the moment and that will be another incentive for investors to look at this company to take positions for the next few years.
Another of the most relevant aspects of Iberdrola is the fact that it is a company that is highly established in the domestic sphere. To the point that it enjoys the trust of a good part of small and medium investors. Because apart from the profitability that can be generated with the evolution of its shares there is also the interest of its dividends. A two-way street, therefore, to make profitable savings from now on. Where the risks are very controlled and it is very difficult for you to lose a very important part of the invested capital.
A recurring type of business
If Iberdrola stands out for something, it is because it represents a line of business that is always demanded by citizens. They need energy for their homes or work and this company provides it to them every month under an increasing rate year after year. This is one of the reasons why it distributes profits to all its shareholders. Unlike other lines of business, they depend on other factors to sell their products or services. This offers great peace of mind to investors who have taken positions in this stock.
On the other hand, electricity is one of the most stable businesses within the national business community. With very little competition due to the special circumstances in which this relevant sector lives. Finally, it should also be noted that it is very difficult for this class of companies to go bankrupt at some point in their business life. Something that does not happen in other sectors more vulnerable to this remarkable fact than if it can happen in other listed companies. Much liked by life savers.
Your most relevant contributions
It is a very traditional type of company that has managed to adapt to new times. Even with a very specific weight within renewables. Where there are many additional factors that it can contribute to investors and among which the following points stand out in its favor:
- It is one of the classic values of national equities.
- It belongs to a sector with a long tradition in the stock market.
- It is a security that stands out for its high capitalization.
- It does not require special care to avoid risks in its price.
- It presents a PER that is considered by financial analysts as more than interesting.
- It is integrated into the great values that make up the Spanish stock market.
- Its main attraction lies in the security that your investment provides.