Their Majesties of the East have already received almost all the wish lists for this year, but there is still time for those furthest behind to include some more gifts. January 6 – Monday – is the cut-off date to receive dividends of Endesa and CIE Automotive, which are the ones that open the calendar of the Spanish stock market next year. However, the investor may put both titles in his portfolio until January 3 if he wants to collect these remunerations, which have a payment date of January 8. The cash of both is also almost the same, 0.46 euros gross per share of the automobile (which offers almost 2%) and 0.50 euros for electric (which gives 2.5% at current prices).
Based on 2024 results, Endesa proposes a dividend of 1.2 euros per share, 20% more than in 2023 and 9% more than the forecast announced a year ago. The company aims to reach 1.5 euros/share in 2027. With this, the dividend yield in the entire strategic plan will range between 6% and 7%. Thus, a few weeks ago, Endesa reformulated its current policy so that the ordinary dividend is equal to 70% of net profit (pay out) with a minimum equal to 1 euro gross for the years 2024 to 2027.
Regarding the payment policy, Endesa also recalled in the presentation of its 2025-2027 strategic plan that its ability to distribute dividends among its shareholders depends on numerous factors, including the generation of profits, the availability of distributable reserves, and the situation of liquidity. Therefore, the company indicated that it cannot be certain what dividends will be paid in future years or what their amount will be.
Thus, in the same presentation, the company anticipated that it plans to close 2024 exceeding the ordinary net profit forecast, which will reach 1,800 million, and achieving an EBITDA of 5,200 million. “Endesa could expand its profit growth by targeting a fixed-price customer base with higher margins and reducing power generation costs through the deployment of clean energy. Recurring ebitda could increase by 3% to 4% annually in 2024-27, reflecting the normalization of market fundamentals after the energy crisis, and the sustained investment in the grid and renewables,” they explain from BloombergIntelligence.
CIE, for its part, will pay an interim dividend charged to the results for fiscal year 2024 of 0.46 euros gross, that after the corresponding tax withholding, the dividend will be 0.3726 euros net. At this moment, 92% of the experts it brings together BloombergThey recommend taking positions in the firm, which lost almost 3% in the year and offers a potential of 30% for the coming months.
“About 80% of their income [de CIE] They are independent of the powertrain, which has helped it navigate uncertainty around the transition to electric vehicles and maintain an industry-leading margin. Europe is CIE’s largest market, but with a below-average margin due to high regulation, electricity costs and lower volume, although this is more than offset by high growth and margin in India and Brazil, which “it bodes well for achieving an EBITDA margin target of over 19% in 2025,” they indicate from BI, and they add that the deleveraging could reduce CIE’s net debt/ebitda below once in 2026“which highlights the financial solidity of the company and the scope for mergers and acquisitions,” they clarify.
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