Bankinter | The company has announced a 9.5% increase in its ordinary interim dividend for 2025 to €0.253 per share. Today is the last day to buy shares in the group and be eligible for this dividend under the Iberdrola Flexible Remuneration programme. Iberdrola gives its investors the option to choose how they wish to receive their remuneration. The company’s shareholders can choose between receiving the dividend amount in cash, selling their allocation rights on the market or obtaining new shares free of charge. The three options can be combined. Shareholders who opt for the cash option will receive the dividend amount on 2 February.
Analysis team’s view: Positive news. The group’s strong results—with net profit excluding extraordinary items up 17% in the first nine months of the year—and the management team’s focus on shareholder remuneration have led to this improvement in the group’s dividends. Our estimate for dividend per share growth for the year as a whole is 8% to €0.70/share, so this interim dividend increase is slightly higher than our initial estimate. At current market prices, the dividend yield is 3.7%. Iberdrola is showing very favourable results, even beating consensus estimates, which will allow not only further dividend increases in the future but also upward revisions in valuation. Of the three possible ways to receive the dividend, we believe that the best option is through new shares, as this allows reinvestment in a group with very favourable prospects.
