The dividends of Spanish equities are the highest of the international trading floors and are the ones that offer the highest return all year long due to being positioned in some of their representatives. At the moment they offer an interest around 4,5%, and they are only questioned by the British Stock Exchange which is another of the best returns it provides to investors. In this sense, it should be noted that the historical average of this indicator for Spanish listed companies in recent years is just over 4% and that it places it in first place compared to other financial markets in the world, according to the latest data offered by Stock Exchanges and Markets of Spain (BME).
But the most interesting thing is that with the brutal descent that have occurred all over the world, and of course also in the Ibex 35, the dividend yield has improved substantially in all values. In proportion to the depreciation in prices that it has had in those days. In other words, as the falls have been more powerful, the remuneration for this concept has grown proportionally. With an improvement in some of the cases around the percentage point and that serves so that every year more money can be charged for this remuneration to the shareholder.
On the other hand, this effect can be achieved only in cases where investors buy shares in financial markets. Never for what you already have open positions in these special values. With which which, will be the new investors those who will benefit from this new scenario presented by national equities at this time. Or, failing that, through a strategy that consists of selling the stocks in the portfolio and going to other securities that have improved this ratio in recent days or weeks. Although assuming the collection of the corresponding commissions for the purchase and sale operations in the two movements.
Most profitable dividends on the Ibex 35
After the significant falls of these days, a good number of listed companies in the Spanish selective have a dividend yield of more than 6%. Which is a little joy for investors who are waiting for a business opportunity. Especially if one takes into account that the Ibex 35 accumulates a decrease of more than 5% after the news about the expansion of the corona virus in the latter, in a good part of the international geography. In this way, they will be in a position to improve their results at the end of the year. Through payments that are formalized every semester, quarter or in the year as a whole.
With this change in favor of the Ibex 35 dividends, savings can be made profitable through this path that is so required by investors who have a more conservative or defensive profile. Not surprisingly, one of the main contributions they provide, especially the one referred to the index for dividends, is that from now on the investor will have an index where all the securities listed on the national index are grouped. Not like until a few years ago when these values were only integrated into the general indices and therefore there was no reference to opt for the values that distribute dividends among their shareholders.
Improvement in your profitability
As an example, in a value like Mapfre which offers a dividend of 0,16 euros for each share every year has seen its profitability improve substantially these days as a result of the decline in its shares. Going in a very short space of time from 6,1% to 6,8%. This change in remuneration is due to the fact that its valuation on the stock market is no longer the same since it has gone from trading 2,48 euros to just over two euros. This fact has a valuation for dividends and from which only small and medium investors can take advantage from now on. As long as there is no rebound or it simply recovers the ground lost after Black Monday in the national and international equity markets.
While on the other hand, it cannot be forgotten that there have been values that in a few days have lost almost 20% of your rating in a bag. For example, representatives of the airline, hotel and tourism sectors in general. Where there has been a very violent adjustment that has caught change with the foot of a good part of the stock market users. But not everything will be negative for their personal interests since from now on they will have a much more attractive dividend interest than a few days ago. Especially in securities such as IAG, Amadeus, Sol Melia or Arcelor Mittal.
Appearance of business opportunities
The good news about these drops is that from this moment on you will be able to buy the shares of the companies quoted at more competitive prices than before. With various effects on the operations that you are going to carry out in the coming days. First, and as we have discussed previously, you will have a higher dividend yield. With percentages that can vary from a few tenths of a percentage to just over 1%. While on the other hand, the prices of the purchases will be much more adjusted so that you can make them profitable in the coming months or even years.
Nor can you forget that by making these acquisitions so low in prices, the risks in investments will be significantly lower than just a few weeks ago. The logical consequence of these actions is that you will have much more to gain than lose and this is in itself a great advantage. Not surprisingly, one of the wishes of small and medium investors was that important corrections could be developed in the financial markets in order to enter the equity markets. Because the prices were very high and therefore altitude sickness made them unable to enter their positions. Well, this excuse has disappeared, although with the risk that this decline can be deepened until an effective solution to the coronavirus is found.
The Ibex 35 below 9.000 points
In any case, we already have the Ibex 35 below 9.000 points and after winning a thousand points in a week. This is a situation that we have not seen for many, many years. The key now is to know the level where this global decline in international stock markets will stop. Not in vain that will be the point to enter the positions of the securities that present a better technical aspect at that time. Not surprisingly, what it is all about in the end is to buy the securities with the best possible changes so that their revaluation potential is much more powerful.
From this point of view in the financial markets it can be a real business opportunity. Especially if this health problem can be solved in a more or less reasonable period of time. Therefore, it will be very important to see what the reaction of world equities will be in the next week, where of course anything can happen. Especially after having broken very important supports, both in stock indices and in a very important part of listed companies and their respective sectors.
Ibex 35 dividends
This is an index of the equities of our country in which the values that distribute dividends among its shareholders are gathered. With a profitability slightly higher than its matrix and that it is represented by the most solid and important listed companies in our financial market. With the launch of the new stock index for companies that distribute dividends to shareholders, investors will have a new channel to regularly follow the evolution of these pooled securities, the returns they provide and other payments they offer to their shareholders. It serves as a reference for small and medium investors who choose this kind of investment, excluding the other securities on the stock market.
In addition, the Ibex 35 dividends has become the basis of some investment funds, both national and outside our borders, which are opting for this strategy when preparing their investment portfolio. As is the case with some of the selective indices of equities in the old continent, as for example in the French CAC 40. Being one of the indices that have been implemented a few years ago in order to serve as a reference for the operations of small and medium investors. Although in any case, they are not reference sources normally followed by the official media. If not, on the contrary, they are a new parameter to diversify investments in a more efficient way. With the prices of the purchases that will be much more adjusted now.