The national stock exchange excels in a busy year with a dividend yield that remains around 4%
Recession fears, skyrocketing inflation, geopolitical tensions with the outbreak of war in Ukraine… This 2022 has not been an easy year for investors, who have had to deal with huge uncertainty and volatility that, despite everything, have hit the Spanish stock market manages to outperform other major European indices.
In this complex environment, the National Prosecutor’s Office has been able to promote one of its great historical assets: shareholder compensation. According to data from Bolsas y Mercados Españoles (BME) up to the end of November, these companies have distributed more than EUR 23,600 million to their shareholders through dividends, share premium repayments and capital reductions with repayment of contributions.
The figure implies 15.3% more than what was paid out for all of 2021, an exercise in which sectors such as banks were still under the scrutiny of regulators, who continued to demand caution on remuneration after the severe blow of the pandemic. necessary to maintain supplies.
However, the remarkable growth has not served to restore the pre-pandemic level, when dividends exceeded EUR 30,000 million. But it is clear that investor concern is still one of the great attractions of the national market.
Another shareholder reward formula that has boomed in Spain this year is share buybacks and subsequent amortization. This modality, with a great tradition and impact in the United States, is experiencing strong growth in the country, with 26 operations with a market value of 13,890 million euros, a figure that has been depreciated by more than three times over the whole of 2021 and some represents an annual record.
In this sense, the CEO of Bolsas y Mercados Españoles (BME), Javier Hernani, recalled that despite it being a difficult year that will be followed by “a new phase of uncertainty”, national companies are approaching the scenario “in better conditions than in the past”.
Speaking at the traditional Christmas gathering to present the 2022 market report, he stressed that the market’s dividend yield remains at 3.9%. “This commitment to shareholder compensation is long-term as the historical average over the last 35 years is 4%,” he said.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
