This means that there are leading companies in the distribution of dividends, consolidated companies that are committed to compensating the shareholder and perhaps do not think so much about the growth of their business; which is the other side of companies with a too high ‘pay out’. The ‘pay out’ is the proportion that shows the percentage of the benefits that a company dedicates to the payment of dividends.
Dividends are vital at times like the current one of great volatility and accumulated falls in recent months, since they serve to protect portfolios. According to a UBS study looking at the contribution of dividends, assuming they are reinvested, they represent up to 60% of total long-term returns.
“Dividends are highly valued by investors and represent an essential component in the asset reaction of the overall return on equity investments. Especially in times of low interest rates, investors expect payouts to be attractive and, in Consequently, there is great pain when, as during 2020 as a result of COVID-19, there are reductions or even cancellations, ”explain Christos Sitounis and Thomas Meier, fund managers at MainFirst.
“In the ‘Annus Horribilis’ of 2020, dividends worth 257,000 million euros were distributed, which represents a decrease of 36% compared to the previous year. However, dividends are already expected New record dividend amounts for 2022, that is, only two years after the outbreak of the pandemic. In other words, the recovery has been much faster than after the last global crisis in 2008”, they add.
The 13 leading companies by dividend
In the Spanish stock market there are up to 13 companies on the Spanish stock market that present a dividend return of more than 5.6%, the growth estimated by the European Commission for the Spanish economy in 2022. These perspectives were published on February 10, before even from the beginning of the war in Ukraine, so they could be revised downwards in the coming months.
In concrete terms, six securities are part of the Ibex 35 and the other seven are on the Continuous Market. Endesa has a dividend yield of 9.83%, Enagás 8.43%, Telefónica 8.23%, Mapfre 7.31%, ACS 7.07% and Red Electrica 5.70%. Most are companies well known for their shareholder remuneration policy for several years and have not made major changes in recent times, except for the telephone operator that reduced it last year.
In the case of the Continuous Market of the Spanish stock market, there are also authentic dividend ‘jewels’, perhaps something less known than the Ibex 35 shares. The most generous company with its shareholders is Naturhouse, which presents a dividend yield of 13.76% , followed by Logista with 7.47%, FCC with 7.43%, Ebro Foods with 7.05%, Prosegur with 6.28%, Aedas Hogares with 5.67% and Prosegur Cash with a 5.66%.
Investors who want to access the dividends of these companies in the coming months must closely follow the payment schedule that the companies themselves announce in the National Securities Market Commission (CNMV) and in their own media such as social networks and website . At the moment, among the 13 companies mentioned Aedas Homes pays shareholders on March 31 and Ebro Foods on April 1.
Investing through dividends is a simple and economical way to make the savings of a person who has a lot of pull in Spain profitable. “In the United States and Japan they have another way of working, they are more interested in growth or they believe that the shareholder is considered paid if there is in the action. In Europe we are of the old school, the shareholder wants to be paid your coupon and we, in the Spanish stock market, pay a very high dividend”, says Enrique Castellanos, director of the BME Institute.