The dividend yield is a financial ratio closely followed by the market that relates the company’s payment in the last year and the price of the share, so the percentage can be increased if the share falls and the dividend is maintained.

Another ratio to take into account to know the dividends of the companies is the ‘pay-out’, the percentage of profits distributed in dividends.

It is also advisable to know the level of debt, cash flow, earnings per share (EPS) and dividend history to know if payments are sustainable over time.

The average revaluation of the Ibex 35 with Dividends presents an accumulated annual return of 7.95% in its 30-year history, four points higher than that collected only by the prices in the IBEX 35.

The companies on the Spanish stock market paid almost 30,000 million euros throughout 2023. Despite this, the figures are still below the years before the pandemic, such as the 31,706 million distributed in 2019 and the 30,105 million distributed in 2018 on the shareholders of the companies on the Spanish stock market.

Among the securities with the highest dividend return and that do best on the stock market are Mapfre with 15.76%, Endesa with 13.83%, Telefónica with 12.86%, and Enagas with 10%.

Dividend distribution calendar

Here you can consult the dividend calendar of Spanish Stock Exchanges and Markets

Calendar and next dividends 2024

Why invest in dividends? The main reason investors are willing to risk their capital is to obtain a return on their investment. In the real estate market, that return is the rent. In the money and bond market, it is interest. And in the stock market, it’s a cash dividend.

People who ignore the importance of dividends when making stock market selections are not behaving like investors. They are speculators. Speculators wait for the price of a stock to rise and reward them with profits. Investors know that stocks that pay dividends also go up. Meanwhile, they earn a return on their capital. They believe in the old saying: a bird in the hand is worth two in the bush.