BBVA will distribute 15% of its value on the stock market among shareholders

BBVA will distribute up to 15% of your capitalization between shareholders, between cash payments and share repurchases totaling €5.5 billion. The entity has confirmed that it will be next april 8 when you pay the second -and last- of the dividends charged to the 2021 financial year, although in order to access it it is necessary to have company shares before day 6, when the cut-off is set. Check here the calendar of upcoming dividends of the Spanish stock market

The payment will amount to 23 cents per sharewhich yields 4% at current prices, and it will be with it that BBVA joins the EcoDividendo portfolio from Monday, prepared by the Economist with the next five most attractive payments, occupying the seat vacated by Vidrala.

The second installment will thus complete an annual remuneration of 31 gross cents per share, which is the highest entirely in cash since 2009 (when it amounted to 0.42 euros). If payment is taken into account scrip -which the entity carried out since 2010 and for six more years- the dividend is the highest since 2016. In addition, it represents an increase of 19% with respect to the payment of 2019, the one prior to the outbreak of the pandemic.

Now with the rally of the last few months that the sector has been on the stock market, not only have old remunerations returned, but also their titles have already recovered from Covid. Specifically, BBVA shares are trading at levels 21% higher than two years ago, just before the crash From the market. Ahead, in terms of revaluation, are other entities such as Bankinter (35% above pre-Covid levels) and CaixaBank (26%). Sabadell, which has risen 55% in the year, is only 10% higher, taking into account, of course, that it came from much further back.

So far this year, the conglomerate of Ibex banks has risen an average of 18% (the calculation is made taking into account the weighting of the entities in the index) compared to 10% for BBVA.

Increased profitability

The dividend of the entity chaired by Carlos Torres reaches a return of 5.4% in 2021, not including the repurchase of shares equivalent to 10% of the capital or a maximum of 3,500 million euros. At the moment, and according to the latest data published during its annual results, from the first section of the buyback announced, 60% of a total of 1,500 million has already been executed. The second tranche is planned for a value of 2,000 euros and will end before November 18 of this year, predictably, once the twelve months have elapsed.

The market considers that BBVA’s cash remuneration will increase in the future, also thanks to the growth in profit, taking into account that it is linked to a payout from 40% to 50% (in 2021 it has risen to 44%). A dividend of 0.33 euros is expected to be charged to 2022, according to Bloomberg, and it will reach 0.34 in 2023, which would imply returns of 5.7% and 5.9%, respectively, for the next two training.