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The Spanish brick prevails over the bank and leads the dividend yield

Date: April 12, 2024 Time: 17:55:36

The real estate sector has always figured among the investments par excellence of the Spanish. The lack of financial culture and the refuge profile that this type of asset has played has led them to be one of the main destinations for savings. This situation does not go unnoticed in the financial markets, where it stands as one of the most attractive as far as dividend yield is concerned. Of the seven listed companies that offer a return of more than 10% this 2023, five of them will carry out their activity in this area.

These are Aedas Homes (13%), Lar España Real Estate Socimi (11.8%), Neinor Homes (11%), Metrovacesa (10.4%) and Renta Corporación Real Estate (10.4%). The ‘pay-out’ ratio (percentage of profit distributed among shareholders), which in cases such as that of the promoter led by David Martínez, reaches 90%, or the three-year remuneration plan of the group led by Borja García-Egotxeaga, which establishes the distribution of 450 million as dividends, a figure that rises to 600 million in the five-year roadmap, are some of the reasons that explain this classification.

Added to this is the reinforcement of the dividend by up to 66% by Lar España with the distribution of 50 million, in line with Metrovacesa, which paid 0.33 euros per share last May, which translates into 50 million . Between April and July, the shareholders of the Spanish listed companies received a shower of dividends that will be close to 9,000 million, although regardless of the amounts, none will be as profitable as those mentioned, with the exception of Vocento (11.5% return) and Atresmedia (10.6%), who ‘sneak’ into the middle of this list.

The “good” operating performance that the promoters have registered in a context in which the high demand of the last few months has allowed them to pass on the increase in costs derived from the rise in inflation. The situation contrasts with the evolution that they have experienced on the stock market, since although they are rising, with double-digit increases in Lar España (+24.5%), Metrovacesa (+15.2%), Aedas Homes (+14.3 %) and Neinor Homes (+5.13%), while Renta Corporación Real Estate accumulates a stock market decline of 8.6%, come from 2022 in which their prices suffered severe punishments due to the awakening of interest rates.

It is precisely the cocktail of weak prices together with the volume of activity that has pushed up the profitability of these companies, according to the Renta 4 analyst, Javier Díaz. This is not the case with the two Ibex 35 Socimis, since you have to go down to 24th place to find Merlin Properties (5.5% return), while Colonial (4.49%) occupies 30th place in the ranking. Added to this are the falls in stock market valuations that accuse in the annual computation of 10.9% and 7.3%, respectively.

In fact, no member of the Spanish selective has a dividend yield above the aforementioned threshold of 10%. Only Enagás comes close (9.4%), while Telefónica is placed slightly above 8.2% and Mapfre is just at the gates (7.96%). The five listed brick companies outperform even the banking sector, which despite its efforts to strengthen the distribution of profit among shareholders, is somewhat further behind. After CaixaBank (7.92%) has given the ‘sorpasso’ to BBVA (7.84%) in recent days, the return for the investor of the six Ibex entities is lower, being Banco Santander (5.5% ) the ‘least generous’ in this sense.

In the background are Inmobiliaria del Sur (3% return), Grupo Empresarial San José (2.63%), figures that contrast with those recorded by other firms in the sector. Under this umbrella, some managers have honed their nose and have gone hunting for opportunities in real estate. One of them has been Abante Asesores, which has launched a fund to invest in socimis and developers. In an interview with La Información, José Ramón Iturriaga, the manager of this investment vehicle, assured that he expects a “flurry” of operations once there is certainty about the latest rate hike in the United States and the end can be clearly anticipated. of the increase in the reference rate of money in the euro area.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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