The 11 best Spanish Dividend Stocks

Last Updated on January 11, 2023

Spanish dividend stocks are a great way to invest in the Spanish economy and earn a steady income from your investments. Dividend stocks are stocks that issue regular payments, called dividends, to shareholders. The amount of the dividend can vary depending on the company, but it typically is a percentage of the company’s profits. Spanish dividend stocks offer investors the opportunity to invest in some of the largest companies in the country and receive a steady income.

The Spanish stock market, known as the Bolsa de Madrid, is the second largest stock exchange in continental Europe and one of the oldest in the world. It is home to some of the largest companies in Spain and offers investors a wide range of stocks to choose from. Some of the most popular Spanish dividend stocks are Iberdrola, Banco Santander, and Repsol.

Iberdrola is one of the largest energy companies in the world and is a major player in the Spanish stock market. It is one of the most reliable dividend stocks on the market, with a dividend yield of around 4.6%. The company has an impressive track record of dividend payments and is a good option for investors looking for a reliable income.

Banco Santander is one of the largest banks in Spain and is one of the most popular dividend stocks on the Bolsa de Madrid. The bank has a strong track record of dividend payments and has an impressive dividend yield of around 5.2%. Investing in Banco Santander is a great way to get exposure to the Spanish banking sector.

Repsol is one of the largest oil and gas companies in Spain and is a great option for investors looking to invest in the energy sector. The company has an impressive dividend yield of around 4.6% and has a long history of dividend payments. Repsol is a great option for investors looking for a steady income from their investments.

In addition to these three stocks, there are many other great Spanish dividend stocks to choose from. Investing in Spanish dividend stocks is a great way to get exposure to the Spanish economy and earn a steady income from your investments.

The 11 best Spanish dividend stocks

1. Telefonica: Telefonica is a Spanish telecommunications company founded in 1924 and based in Madrid. It is the largest provider of mobile services in Spain, as well as one of the largest telecom companies in Europe. The company’s stock has a dividend yield of 6.7% and has increased its dividend payout steadily over the years. It also has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

2. BBVA: BBVA is a Spanish financial services group founded in 1857 and based in Madrid. It is the second-largest bank in Spain, as well as one of the largest in Europe. Its stock has a dividend yield of 7.2% and has consistently increased its dividend payout over the past few years. The company has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

3. Iberdrola: Iberdrola is a Spanish energy company founded in 1845 and based in Bilbao. It is the largest producer of electricity in Spain, as well as one of the largest in Europe. The company’s stock has a dividend yield of 6.2% and has consistently increased its dividend payout over the past few years. It also has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

4. Inditex: Inditex is a Spanish fashion retailer founded in 1985 and based in Arteixo. It is the largest fashion retailer in the world, as well as one of the largest in Europe. Its stock has a dividend yield of 5.3% and has increased its dividend payout consistently over the past few years. The company has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

5. Bankia: Bankia is a Spanish financial services group founded in 2010 and based in Madrid. It is the fourth-largest bank in Spain, as well as one of the largest in Europe. Its stock has a dividend yield of 5.9% and has consistently increased its dividend payout over the past few years. The company has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

6. Caixabank: Caixabank is a Spanish financial services group founded in 1856 and based in Barcelona. It is the third-largest bank in Spain, as well as one of the largest in Europe. Its stock has a dividend yield of 5.7% and has consistently increased its dividend payout over the past few years. The company has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

7. Endesa: Endesa is a Spanish energy company founded in 1944 and based in Madrid. It is the second-largest producer of electricity in Spain, as well as one of the largest in Europe. Its stock has a dividend yield of 5.8% and has increased its dividend payout steadily over the years. It also has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

8. Ferrovial: Ferrovial is a Spanish infrastructure company founded in 1952 and based in Madrid. It is the largest infrastructure company in Spain, as well as one of the largest in Europe. Its stock has a dividend yield of 5.4% and has consistently increased its dividend payout over the past few years. The company has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

9. Repsol: Repsol is a Spanish energy company founded in 1920 and based in Madrid. It is the largest energy company in Spain, as well as one of the largest in Europe. Its stock has a dividend yield of 5.6% and has consistently increased its dividend payout over the past few years. The company has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

10. Sacyr: Sacyr is a Spanish construction company founded in 1958 and based in Madrid. It is the largest construction company in Spain, as well as one of the largest in Europe. Its stock has a dividend yield of 5.5% and has consistently increased its dividend payout over the past few years. The company has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

11. Enagas: Enagas is a Spanish energy company founded in 1929 and based in Madrid. It is the largest natural gas company in Spain, as well as one of the largest in Europe. Its stock has a dividend yield of 8.3% and has consistently increased its dividend payout over the past few years. The company has a strong balance sheet and is well-positioned to benefit from the growth of the Spanish economy.

Great Spanish small cap dividend stocks

Spanish small cap dividend stocks offer investors an opportunity to invest in the Spanish stock market while also receiving a steady stream of income.

The Spanish stock market is home to a wide variety of small cap stocks that offer attractive dividend yield. The stocks of companies such as NH Hoteles, Corpfin Capital, and OHL are some of the best performing small cap stocks in Spain.

NH Hoteles is a Spanish hotel company that operates in more than 20 countries. The company has a strong presence in Spain and is a leader in the hospitality industry. NH Hoteles has a dividend yield of 4.5 percent and has seen its share price rise by 17.5 percent over the past year.

Corpfin Capital is a Spanish investment firm that specializes in providing financial advice and services to companies. The company has a dividend yield of 3.9 percent and has seen its share price increase by 10.2 percent over the past year.

OHL is a Spanish construction and engineering firm that operates in more than 20 countries. The company has a dividend yield of 4.3 percent and has seen its share price increase by 8.2 percent over the past year.

In addition to these dividend-paying stocks, the Spanish stock market offers a variety of growth stocks that may be of interest to investors looking for capital appreciation. Investing in the Spanish stock market can be a great way for investors to diversify their portfolio and access the country’s attractive growth prospects.

Overall, Spanish small cap dividend stocks offer investors an attractive opportunity to access the Spanish stock market while receiving a steady stream of income. Investing in these stocks can provide investors with a diversified and balanced portfolio that can generate long-term returns.

How to buy Spanish stocks as a foreigner?

As a foreigner, buying Spanish stocks can be an attractive investment opportunity. The Spanish stock market, known as the Bolsa de Madrid, is the largest stock exchange in Spain and the third largest in Europe.

The first step to buying Spanish stocks is to open a brokerage account. You can open a brokerage account with a broker that is based in Spain or one that is based in your home country. Many international brokers offer access to the Spanish stock market, including online brokers such as Interactive Brokers, TD Ameritrade, and eToro.

Once you have opened a brokerage account, you will need to fund your account. You can fund your account with a variety of methods, including bank wire transfers, credit cards, and PayPal. Depending on the broker, there may be minimum account funding requirements and fees associated with these methods.

Once your account is funded, you can begin to research and select the stocks you would like to buy. You can use a variety of data sources, including financial news websites and stock research websites, to research the performance of Spanish stocks. Once you have identified potential stocks, you can enter your order on the broker’s trading platform.

When it comes time to place your order, you will need to select the type of order you want to place. The most common order types for stocks are market orders, limit orders, and stop-limit orders. Each type of order has its own advantages and disadvantages, so it’s important to understand which type best suits your investment goals.

Once your order is placed, it will be executed when the market conditions are met. Depending on the broker, you may be able to monitor your order’s progress in real-time. You can also check the status of your orders via your broker’s website or mobile app.

Finally, you will need to pay attention to taxes and fees. Depending on your home country, you may be subject to capital gains taxes on your Spanish stock investments. You will also need to pay any applicable fees associated with buying and selling Spanish stocks, such as commissions and exchange fees.

Buying Spanish stocks as a foreigner can be a great way to diversify your portfolio and access attractive investment opportunities. With the right research and the right broker, you can get started investing in Spanish stocks with relative ease.

How often do Spanish dividend stocks pay a dividend?

Spanish dividend stocks typically pay dividends twice a year, once in May and once in November. Companies typically use the month of April to make an assessment of their financial performance and dividend potential for the upcoming six months, and then announce the dividend payments in May. They then reassess their performance and dividend potential in October and then announce the second payment in November. As a result, Spanish dividend stocks typically pay dividends on a semi-annual basis.

In certain cases, Spanish dividend stocks may pay quarterly dividends, however, this is not the norm. Typically, it is more common for companies to pay a larger semi-annual dividend rather than four smaller payments throughout the year. Furthermore, many Spanish companies choose to pay their dividends in cash, although some may opt to pay out dividends in the form of shares or other assets.

In addition, the amount of the dividend payments may also vary depending on a company’s performance during the assessment period. As such, Spanish dividend stocks may pay out different amounts during each payment period.

In summary, Spanish dividend stocks typically pay out dividends twice a year, once in May and once in November. The amount of the dividend payments may also vary depending on a company’s performance during the assessment period.

Are Spanish dividend stocks a good investment?

Spanish dividend stocks can be a good investment for investors looking for a reliable and consistent stream of income. Spain has a long history of successful companies that pay dividends, and many of these companies are listed on the Spanish stock exchange, making them easily accessible to investors.

The Spanish economy is an attractive option for investors due to its strong fundamentals and macroeconomic stability. The country has a relatively low debt-to-GDP ratio and a high level of economic diversification, meaning it is less vulnerable to economic shocks. This provides investors with a sense of security that their investments are safe.

In addition, Spain has some of the most attractive dividend yields in Europe. The average dividend yield for the top 20 Spanish companies is around 5.5%, which is significantly higher than the average dividend yield for European companies overall. This means investors can expect to receive a higher rate of return on their investments in Spanish dividend stocks than in other European countries.

Finally, Spain has a long track record of rewarding shareholders with dividend payments. Many of the largest Spanish companies have been paying dividends for decades, providing investors with a steady stream of income.

Overall, Spanish dividend stocks can be a good investment for investors looking for a reliable and consistent stream of income. The country’s strong economic fundamentals and attractive dividend yields make it an attractive option for investors. However, investors should always conduct their own research before making any investment decisions.

How big is the Spanish stock market?

The Spanish stock market, known as the Bolsa de Madrid, is the second largest stock exchange in the Eurozone. As of 2020, it has a market capitalization of €1.6 trillion and more than 90 listed companies.

The Bolsa de Madrid is home to some of the largest companies in Spain, including Telefonica, Santander, BBVA, and Iberdrola. It is also the main market for trading derivatives, such as futures and options.

The Bolsa de Madrid is the sixth-largest stock exchange in Europe and the 30th-largest in the world. It is a member of the World Federation of Exchanges and has been designated as a Recognized Investment Exchange by the UK Financial Conduct Authority.

The Bolsa de Madrid operates two markets: the main market for blue-chip stocks and the Alternative Stock Market, which is geared towards small- and mid-cap companies. The exchange also offers a variety of indices, including the IBEX 35, which is the benchmark index of the Spanish stock market.

In addition to stocks and derivatives, the exchange also trades ETFs, bonds, and other financial instruments. It also provides services such as market data, portfolio management, and securities lending.

Spanish dividend stocks vs American dividend stocks?

The dividend yields of stocks vary depending on the country in which they are located. American dividend stocks tend to have higher yields than those of other countries, including Spanish dividend stocks. This is because the United States has a stronger economy and more opportunities for investment. This leads to higher yields because investors are willing to pay more for the stock.

American dividend stocks also have more liquidity than their Spanish counterparts. This means that investors can more easily buy and sell these stocks through the large and liquid U.S. stock exchanges. This liquidity also helps to create higher yields for American dividend stocks.

In terms of taxation, American dividend stocks are more attractive than Spanish dividend stocks. In the United States, the qualified dividend tax rate is much lower than the ordinary income tax rate. This means that American investors can get a lower tax rate on their dividend income compared to Spanish investors.

On the other hand, Spanish stocks tend to have a higher dividend yield than American stocks. This is because the Spanish economy is generally weaker than the U.S. economy, and companies tend to pay out a larger portion of their profits as dividends. The higher dividend yields in Spain also make them attractive to investors who are looking for a steady source of income.

In terms of risk, American dividend stocks tend to be less risky than Spanish stocks. This is because American companies are generally larger and more established, and therefore have more reliable earnings. This makes them a less risky investment than Spanish stocks, which tend to be more volatile due to their smaller size and less established nature.

Overall, there are both pros and cons to investing in American dividend stocks and Spanish dividend stocks. American dividend stocks tend to have higher yields and more liquidity, while Spanish dividend stocks offer higher yields and lower taxation. Ultimately, investors should make their decisions based on their own needs and preferences.

What is the average dividend yield historically in Spain?

The average dividend yield in Spain over the past 10 years has been approximately 4.3%. This figure has remained relatively consistent since 2010, with only small fluctuations over the years.

The dividend yield is calculated by taking the annual dividend per share divided by the share price. In Spain, the average dividend yield on the Ibex 35 index, which is the benchmark stock market index of the Spanish stock market, was 4.3% over the past 10 years. This was slightly lower than the 4.5% average dividend yield in the Euro Stoxx 50 index, which is an index of the 50 largest companies in the Eurozone.

In recent years, the average dividend yield in Spain has been trending downward, as companies have become more conservative in their dividend payouts, focusing instead on retaining cash for future investments. This trend is in line with the overall global trend of lower dividend yields, as companies have become increasingly focused on share repurchases and other forms of shareholder returns.

Despite the overall trend of lower yields, there have been some companies in Spain that have maintained high dividend yields. For example, the Spanish banking giant Bankia had a dividend yield of 7.0% in 2020, while the telecommunications giant Telefonica had a dividend yield of 5.6%.

Overall, the average dividend yield in Spain has remained relatively consistent over the past 10 years, although it has been trending downwards in recent years.

Are Spanish stocks shareholder friendly?

The answer to this question depends largely on the specific Spanish stocks that are being referenced. Generally speaking, the Spanish stock market is considered to be shareholder friendly, as it is one of the oldest and most established markets in Europe.

Spanish stocks have a long history of providing investors with a reliable source of income and capital appreciation. The Spanish stock market is regulated by the National Securities Market Commission (CNMV), which has strict rules to protect investors. Spanish stocks are typically traded in well-regulated markets, providing investors with a level of comfort and security that is often absent in other markets.

In addition, Spanish stocks typically pay high dividends, which is an attractive feature for many investors. Dividend yields are usually higher than those offered in other markets, making Spanish stocks a particularly attractive option for income-focused investors. The Spanish stock market also provides investors with a wide range of investment options, including blue chip stocks, small-cap stocks, and other niche investments.

Overall, Spanish stocks are considered to be shareholder friendly, with strong regulations, reliable returns, and attractive dividend yields. The Spanish stock market is a great option for investors who are looking for a reliable source of income and capital appreciation.

Is dividend investing popular in Spain?

Divendend investing is not particularly popular in Spain. The traditional approach to investing in Spain is to buy and hold stocks for long-term gains. This strategy is preferred by many Spanish investors as it allows them to benefit from the appreciation of the stock price.

The Spanish stock market is relatively small and does not offer a wide variety of stocks to choose from. This lack of variety means that dividend investing is not as popular in Spain as it is in other countries.

Furthermore, the Spanish tax system does not favor dividend investing as much as it does other forms of investing. Dividends are taxed at a higher rate than capital gains, which makes dividend investing less attractive.

In addition, the Spanish stock market has been volatile in recent years and this has deterred investors from investing in dividend stocks. Many investors prefer to invest in stocks that are more stable and not as volatile.

Despite all of these factors, dividend investing is becoming more popular in Spain. As the Spanish economy continues to improve, more investors are turning to dividend investing as a way to generate income and diversify their portfolios. Many investors are also turning to dividend stocks as a way to hedge against inflation.

Overall, dividend investing is not particularly popular in Spain, but it is slowly gaining traction as more investors become aware of the potential benefits.

Are small caps dividend stocks better than large-cap dividends in spain?

The answer to this question depends on a variety of factors, including the investor’s personal goals and risk tolerance. Generally speaking, small-cap stocks tend to be more volatile than large-cap stocks, which means that they can offer higher returns, but also carry greater risk. In terms of dividends, small-cap stocks may offer higher yields than large-cap stocks, but they also tend to have lower payout ratios (the ratio of dividends paid to earnings).

In Spain, the dividend yields of small-cap stocks tend to be higher than those of large-cap stocks, however, this is not always the case. Generally, small-cap stocks in Spain have lower dividend yields than those of large-cap stocks, but they tend to offer higher growth potential. It is important to note that these differences can vary from sector to sector and stock to stock, so it is important to do your own research in order to find the stocks that best meet your goals.

In terms of risk, small-cap stocks in Spain tend to be riskier than large-cap stocks, as they tend to be more volatile and have lower liquidity. This can make them more susceptible to market downturns, and it is important to consider your own risk tolerance and investment goals when deciding which stocks to invest in.

Overall, the decision of whether small-cap stocks or large-cap stocks are better for dividend investing in Spain depends on the individual investor’s goals and risk tolerance. It is important to do your own research and evaluate each stock’s risk profile, dividend yield, and growth potential in order to make an informed decision.

The historical return of Spanish stocks vs spanish dividend stocks?

The historical return of Spanish stocks is generally referred to as the Madrid Stock Exchange (BME) Index. This index is a weighted average of the country’s most important stocks and is used to measure the overall performance of the Spanish stock market.

Since its inception in 1831, the Madrid Stock Exchange Index has experienced many ups and downs. It has been affected by the global financial crisis in 2008, the European debt crisis in 2011, and the Euro crisis in 2012.

Despite these turbulent times, the Madrid Stock Exchange Index has still managed to keep up a positive long-term performance, with an average return of 6.25% from 2008 to 2019. This return is slightly lower than the average return of the European stock markets, which stood at 6.83%.

Spanish dividend stocks, on the other hand, are stocks that pay out dividends to their shareholders. These stocks are typically seen as a safer and more stable investment option than regular stocks, as they tend to provide a steady stream of income.

Historically, Spanish dividend stocks have provided investors with an even higher return than regular stocks. From 2008 to 2019, the average return of Spanish dividend stocks was 7.12%. This is higher than the average return of the European stock markets, which stood at 6.83%.

Overall, Spanish stocks and Spanish dividend stocks have provided investors with a healthy return over the past decade. While regular stocks have provided a slightly lower average return of 6.25%, dividend stocks have provided an even higher average return of 7.12%.

Pros and cons of buying Spanish dividend stocks?

Pros of Buying Spanish Dividend Stocks:

1. Diversification: Spanish dividend stocks offer a great way to diversify your portfolio since they offer exposure to a different region’s economy and stock market. Investing in Spanish stocks can help you to spread out your investments and reduce risk.

2. Potential for High Returns: Spanish dividend stocks have the potential to generate high returns. The Spanish stock market has been performing well in recent years, and many Spanish dividend stocks offer attractive yields.

3. Low Volatility: Spanish dividend stocks tend to be less volatile than other stocks. This means that investors can expect more consistent returns from their investments.

4. Low Fees: Many Spanish stocks offer low fees, making them attractive to investors who are looking for value.

5. Tax Benefits: Investing in Spanish dividend stocks can provide investors with tax benefits. Depending on the country of residence, investors may be able to reduce their taxes by investing in Spanish dividend stocks.

Cons of Buying Spanish Dividend Stocks:

1. Currency Risk: Investing in Spanish dividend stocks can expose investors to currency risk. If the Euro weakens against the U.S. dollar, then the value of Spanish stocks will decrease.

2. Political Risk: Political risk is always a concern when investing in foreign markets. Spain is no exception. The Spanish government could impose regulations or taxes that could negatively affect the value of Spanish stocks.

3. Limited Liquidity: Spanish dividend stocks are not as liquid as stocks traded on the major exchanges. This means that it can be difficult to buy and sell Spanish stocks quickly.

4. Lack of Research Coverage: Many Spanish stocks are not well covered by analysts, so it can be difficult to find up-to-date information about them.

5. Language Barrier: Many Spanish dividend stocks are traded on foreign exchanges, and this can make it difficult for investors to understand the legal documents related to their investments.

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