A priori, the open strategy in Endesa (which was one of the first in The portfolio of elEconomista) is more than negative as its stock is down more than 17% since then. However, in a company like utility you have to look beyond that and see the additional profitability that has been achieved through its dividends, which are among the largest juicy of the ibex.
In this sense, since the opening of the position, they have achieved €2.75 per share in dividends, which is equivalent to a total of 1,279 euros and leaves the real return on the losing position at 5%.
This extra remuneration should have a new chapter next month, given that Endesa usually pays its first interim dividend in January. However, this year it will make it official a single payment which will be in early July and, according to the latest update of the strategic plan, will consist of 1.5 euroswhich at current prices it reaches a yield of 8.4%also the highest within the current composition of Wallet and the main criteria for keeping Endesa in the tool.
But not the only one, since in addition to what can be gained from its dividends, it is also hoped that the stock will recover ground. Indeed, its average target price is 22 euros per share according to the consensus of the analysts it includes Bloomberg, above the entry price at the time, which was 21.5 euros. This rating leaves you nearly 24% upside potential from current levels.
Other companies where the dividend is giving great relief in terms of profitability are Ence, Santander and Acerinox, where losses are significantly reduced thanks to the distribution of their profits. Conversely, for example, in BBVA the profitability obtained goes from 15 to 18% while in Inditex it adds almost five percentage points more, up to 14%, thanks to its remuneration.
