Two IBEX 35 companies that pay high dividends in Spain are Fluidra (ES:FDR) and Telefonica (ES:TEF). With higher dividend yields, these companies outperform their respective industry averages. Both FDR and TEF have Hold ratings from analysts.
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Let’s have a look at some details.
Fluidra SA
Fluidra is a global manufacturer of products for the pool and wellness sectors. The company has operations in 47 countries through its subsidiaries.
In March, the company proposed a dividend of €0.70 per share, payable in two equal payments. This dividend implies a payout of 50%, which is in line with the company’s policy. The total dividend payment will be around €134 million. Since the company restarted its dividend in 2020, it has been stable with its payments, driven by strong business operations.
The company also remains confident about future payments, driven by stronger fundamentals and cash flows. Fluidra has recently announced that it has expanded its product portfolio in North America and further strengthened its distribution network in Europe.
Fluidra Share Price Forecast
At an average price target of €15.9, analysts predict a 6% increase in the share price over the next 12 months. The stock has a high forecast of €20.0 and a low forecast of €10.70.
On TipRanks, FDR stock has a Hold rating, based on 3 recommendations.
Telefonica S.A.
Telefonica is a Spanish telecommunications company with operations in around 12 countries.
In its annual results for 2022, the company posted moderate growth numbers. The revenue was up 4%, and earnings grew by 3% on a year-over-year basis. The company also forecasted low single-digit growth for its revenues and core earnings for 2023. The highlight of the results was its free cash flow generation, which grew by more than 70% to €26.7 billion, or €0.80 per share.
During its results presentation, the company announced a dividend of €0.30 per share, which was the same as in the previous year. Telefonica’s dividend yield of 5.94% is higher than the sector average of 1.025%. The stronger cash flow not only easily covered the dividends but also helped the company maintain a healthy balance sheet.
What is the TEF Stock Price Prediction?
According to TipRanks consensus, TEF stock has a Hold rating, based on a total of 9 recommendations. It includes two Buy, six Hold, and one Sell ratings.
The average price target is €4.18, which is 2.6% higher than the current trading levels.
Conclusion
Investors looking to diversify their portfolio with Spanish stocks could invest in these companies for some extra dividend income. Considering the backdrop of the current volatile and challenging environment, investors could feel safe with these dividend stocks.
