The old matildes of the Spanish stock market, Telefónica, is one of those values that should not be missing to make up your investment portfolio for the coming months. For many and diverse reasons. Among them, it stands out that it is one of the reference values of the Ibex 35. It provides a certain stability and has a upside potential very important through its current prices. To the point that its target price, in the opinion of the most important analysts of the variable income, is around 13 or 14 euros per share. With a starting point at the moment close to nine euros. It will be one of the incentives you have to buy their shares.
The bad news for small and medium investors, as it is in your own case, is based on the reduction of this payment that companies pay to the current account of all their shareholders. This measure will make it less attractive for small shareholders who wish to open positions as of next year. Especially when it's one of the top-of-the-line stocks when it comes to dividend yields. This decision has been motivated by the need to reduce the debt of the leading company in this sector.
Without excessive oscillations as one of its main characteristics. Not surprisingly, it is a value that does not generate large changes in its price. In line with those set by the benchmark index of the Spanish stock market. Not in vain during the last years it has moved in a band that has oscillated between 9 and 14 euros per share. One of the reasons for this scenario is that it has a notable core of small investors. Moving many titles in each trading session.
Telefónica: a blue chip
One of the characteristics of this company is that makes up the selective group of blue chips. Or what is the same, the five most important values of the Spanish stock market. In this way, it is the point of reference for many investment funds and investment plans to build your investment portfolio. As a consequence of this particularity, it provides it with great stability to be listed on the financial markets. To the point of becoming one of the securities with the greatest presence in international markets, with a special situation in European ones.
Such is its importance in the Spanish selective index that its evolution depends largely on how its securities are priced. If the national stock market is bullish, in most cases it is due to the impulse in the price of this telecommunications company and vice versa. It is the driver and depressor of Spanish equities. To the point of being completely decisive in shaping the trend. Of course more decisive than another series of values of undoubted interest for small and medium investors.
Sectors: banking always present
If you are an investor, it will be to a certain extent common for you to concentrate your operations on the stock market on securities from the national market, through all its stock market sectors. Since you can save a few euros in the commissions that are applied to open the positions. It will also be a financial market to which you will be more accustomed, not only by the movements of the shares, but by the greater knowledge of the securities listed on its stock indices. Not surprisingly, they will be closer to the profile you present as a retail investor.
As a consequence of this scenario, it will be much easier for you to optimize the operations that you develop in Spanish equities. They will be closer to your interestsBut more importantly, you will have greater self-defense mechanisms to protect your savings. Although in any case you should keep in mind that the Spanish stock market is based on three very determining sectors for its national economy. Do you want to know which ones we are talking about? You will have no choice but to be receptive to these conclusions.
Other very relevant sectors
Undoubtedly the most important, and of which the evolution of the Ibex 35 depends. The large banks in our territory are represented. From those with the largest capitalization (BBVA, Santander or Caixabank), to those with medium businesses, and which are represented by Banco Popular or Bankia, among others. Small banking groups are also present, although for this you have to go to the national continuous market. They are relatively stable values, and they distribute dividends among their shareholders.
Electricity companies are others that have a higher specific weight than in other European indices. They have one of the broadest offerings on the current equity scene. Endesa, Iberdrola, Gas Natural, Red Eléctrica or Enagás are some of the proposals that you can opt for if you do not want to see yourself involved in highly volatile movements, not even at the most unfavorable moments for equities in general.
Both stock market segments offer buying opportunities with great regularity. With the added advantage that they offer you many options where to invest your savings. Above other sectors not with so many representatives in the national selective index. This is one of the main reasons you have to choose one of these values. On the other hand, they provide a dividend for shares that in many cases exceeds the levels of 5%, through quarterly or semi-annual payments, depending on the remuneration policy of each company.
Companies linked to the tourism sector
They may not be represented according to the role they play in the Spanish economy. But they are there, and they can collect the good data that national tourism offers every year. If you want to opt for this proposal on the stock market, you will have NH Hoteles, Sol Melia or Amadeus. They are values very sensitive to tourist flows, both in the national territory, as in other tourist destinations. And that they have in the summer the period in which the greatest number of titles are exchanged.
Of course, it is true that their representatives are not as numerous as in the sectors of the stock market already exposed. This fact removes incentives to make up your investment portfolio from now on. In some cases, with significant appreciation potential. Because with some regularity their prices fall behind in their rises during periods of increases in the financial markets. Although the dividends distributed among shareholders are not as suggestive as in the previous proposals. Because indeed, rarely exceed 5% margins. With a profitability that is not striking enough to lean towards any of these values.
Low weight of the food sector
Perhaps one of the disappointments of the Spanish stock market is represented by the values of food companies. They do not represent the reality of Spanish companies. To the point of being limited to some meat companies and some other distribution company in food products. Even a good part of the proposals have very little specific weight on the general index. Because they are integrated into minority sectors and aimed at small and mid-cap stocks.
There is also a group of food companies that are really conflicting for your interests as an investor. One of the most relevant cases is that of the oil producer deoleo. Because indeed, if you had taken positions at this value five years ago, you would have lost a large part of the capital invested. As a result of the problems generated in the company and that have led to its shares being listed below 0,20 euros. No remedy to amend the error of your decision.
Supermarkets, on the other hand, are represented by the only value, which is Day. One of the ones with the best performance in recent years. With a large influx of buying positions that have clearly imposed themselves on the sellers. With a substantial improvement over its value of several years ago. This has made it a fixed bet in the bets of many retail investors. Also with the hook of offering a dividend to its shareholders.
In oil, Repsol and little else
As for the black gold sector, so important in international financial markets, it does not have its greatest exposure here. It is reduced to a value as important as Resol, but there are too many alternatives to take positions in equities. It is true that its importance in the Spanish stock market is of great importance. But it has been in a downtrend as a result of the decline in the price of crude oil in recent years. To the point that it has reached the level of seven euros per shares. Although at the moment it is stabilized in levels between 12 and 14 euros.
But beyond this oil company, you have little to do. You have no real alternatives to invest in this sector. You will have no choice but target markets in other countries. In this case, yes, you will have a much better chance of finding more than one proposal to boost your investment strategies. With highly diversified companies in terms of their business model. So that in this way, you can choose between several options. As with other equity sectors. In one of the most dynamic groups that you have before you right now.