One of the most unfavorable measures that you have had during the first days of the new year is the increase in electricity bill by the electricity companies. You will see this bad news when at the end of the month the bank passes you the surcharge for this domestic service. You will notice that it has grown compared to the previous months. As a consequence of the cold wave that has gripped the Spanish geography. With a direct effect on homes. Consumption has skyrocketed on colder days.
Anyway, always you have certain strategies to take advantage of these movements. In this sense, take advantage of the benefits that will be generated in the commercialization companies of this basic service for the population. It is no other way than opting for these companies for your operations in the equity markets. Since this effect will be reflected in your business accounts. And as a consequence of them, the quotation of their prices will have a very significant rise.
Perhaps you have not thought about this performance, but you will just be angry at the fact that from this moment your household expenses will increase significantly. It is an investment strategy that you can start applying right now. At least for a period of stay of a few months. To take advantage of this too conjunctural situation that electricity is going through. With important benefits for your checking account balance. So that in this way, you can compensate for the rise you are having in your electricity bill.
Electric: at annual highs
At the moment, the rebound in the price of the shares of electricity companies is a fact that is present in the national equity market. Because in effect, they are the main beneficiaries of the fact that at the end of the month you have to pay more money for the consumption of this energy for home. With rises above other highly relevant values within the selective index of the Spanish stock market. To the point that certain prestigious financial analysts venture that these increases will continue in force during the coming months. Up to what levels? It is the doubt that will have to be deciphered from now on.
From this scenario that presents one of the most strategic sectors of equities, there are many approaches that you can make. With no other objective than optimize your operations on the stock market and get the best return on your savings. From different investment strategies that you can channel depending on the profile you present as a small and medium investor. What it is about is that you take advantage of this situation that the new year that has just begun has brought you. Do you know in what way? Well, you will have the opportunity to meet him from now on.
Purchases in the sector
The national electricity sector is precisely one of those that is channeling the rise in the stock market during the last trading sessions. And it may continue to do so in the future. From this general approach, you should begin to assess the possibility of open positions in some of these companies. Or maybe it will be a bit late to make the savings profitable? In this sense, the evolution of financial markets over the next few years will be more than relevant to choose to go higher prices.
Another factor that is helping in the price of electricity companies is the fact that the general index of the stock market looks good. It cannot be forgotten in this regard, that it has just broken the important resistance it had at the levels of 9.500 points. In addition, with a significant volume of recruitment. What makes you think about the consistency of these increases in recent days. It cannot be ruled out that in a short space of time you can visit the area between 10.200 and 10.500 points. Perhaps as the main and first objective of this early rising rally with which the new year has given us.
It remains to be seen the strength of this trend and to what extent it can lead to the prices of companies, and especially electricity companies. In any case, the outlook is very hopeful for your equity interests. Not in vain, new opportunities open up so you can do business in the financial markets. Something that was not imagined in the early stages of 2017. Of course, the general market sentiment is positive. Much more than before.
Raises above 5%
The increases in electricity companies are generalized, affecting each of the companies that are dedicated to this line of business. In this sense, the price of Endesa, one of the most prominent power companies, is picking up almost 15% so far this year. Although the movements in which the shares of its other rival in the sector, Iberdrola, are moving, are the opposite. With a depreciation of 3%, while the rest move in positive territory.
One of the triggers for these actions in the equity markets is the rise in the price of electricity. Although the good technical aspect that had some of the values outlined. In some of the cases under a very clear purchase recommendation. Even from seriously aggressive strategies. For a period of stay of around 5 or 6 months approximately. Not instead, for the medium and long term.
At the moment, they are favored by a good part of financial analysts. Not surprisingly, its lines of business are highly stable. To the point that it rarely disappoints its investors. Year after year your benefits are increasing. As a consequence, it is a service that users use. Through different services: natural gas, electricity and other kinds of energy. This scenario generates that electricity companies have a fixed income every month. Something that other business segments cannot say.
With very attractive dividends
One of the main characteristics of this segment is that it presents a very generous shareholder remuneration in its percentages. Above those offered by other equity sectors. Through a dividend yield that oscillates from 4% to 7%, depending on the remuneration policy of each company. With payments that in most cases are bimonthly, that is, twice a year. Much to the liking of the more conservative equity investors.
Through the opening of their positions, this investment strategy allows users to have a fixed income within the variable. Regardless of the evolution of their prices in the financial markets. Due to this factor, it is a highly advisable solution for terms of permanence ranging medium and long periods. From this scenario, the risks are significantly less with respect to other not so stable values. Exercising in some situations as safe haven values in very unfavorable scenarios for investors.
A good part of the small and medium investors are inclined towards these values precisely to collect the amount of the dividends. Via two payment methods of this remuneration. On the one hand, so that they go directly to the balance of your checking account. And on the other, with the option of being able to reinvest them in shares. So that in this way, you can continue to make them profitable through the evolution of their prices. Either of these two alternatives you can choose each time this payment is formalized. Although you will have no choice but to announce it to the power company with some anticipation.
Keys to operate with electrics
In any case, if your intention is to operate with any of these values, you should know that your actions comply with a series of requirements. They are more characteristic than in other values. So that you can optimize your operations from now on, you will have no choice but to import a series of tips. Among which the following stand out.
- If you are looking for high profitability, of course this is not the best sector to formalize this kind of operations. Although in return, you will almost always have a minimum return on your savings. Also driven by the payment of dividends.
- It is about a series of values that are characterized fundamentally because they are very stable in their prices. With little volatility and without big surprises for the investments you make at any time.
- In the Spanish stock market you have a wide offer of stock market proposals. In addition, with a great diversification in its lines of business. Generating, therefore, more attractive for their hiring.
- They are highly recommended for you to create a very stable savings bag for the next few years. Even, as in some cases, with a permanent or even hereditary vocation. As surely it will have happened with some investments of your parents or grandparents.
- They are very suggestive for build your next investment portfolio. Under the percentages that you consider most appropriate at all times. But they are essential in all economic scenarios, even the most unfavorable.
- The liquidity offered by these securities is one of the highest in the national stock market system. Not surprisingly, you can enter and exit their positions at any time and without major problems. It is an advantage that this strategy gives you in investment.