Ten Stocks Offering Attractive Dividends and Market Momentum

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Ten Stocks Offering Attractive Dividends and Market Momentum

The Spanish stock market is currently experiencing a remarkable surge, with the IBEX 35 index consistently setting new historical records, recently surpassing the 18,000-point mark. This performance places it at the forefront of global indices, following a spectacular 2025. However, this upward trajectory is accompanied by a call for increased caution. Recent volatility in commodity and technology markets serves as a stark reminder of the swift reversals that can occur in financial markets. In this environment, diversification and a focus on companies offering both attractive dividend yields and sustained market appeal are paramount for investors.

The strategy of identifying companies with strong dividend payouts coupled with solid growth potential is gaining traction. Experts recommend a balanced approach, emphasizing companies that not only reward shareholders regularly but also possess the underlying strength and market position to appreciate in value. This analysis delves into ten such companies, a mix of established players within the IBEX and promising smaller firms, that meet these criteria.

IBEX Stars: Acerinox and Merlin Properties Shine

Acerinox, a global leader in stainless steel manufacturing, stands out for its dual appeal. The company projects a dividend yield close to 5% for 2026, supported by over 72% of analysts recommending a 'buy' rating. Its potential for share price appreciation is estimated at approximately 9%, targeting the 14.30 euro mark. Acerinox is recognized for its solid fundamentals and a sustainable shareholder remuneration policy. The company's stock saw a significant gain of nearly 34% in 2025, bolstered by increasing global demand for its products. Bankinter analysts note its robust cash generation capabilities, even during cyclical downturns, enabling it to maintain its dividend payouts and investment strategies.

Merlin Properties, a prominent real estate investment trust (Socimi), is benefiting from the robust performance of the Spanish real estate sector. Its stock has climbed 7.32% this year, with an estimated upside potential of 13.19%, aiming for 15 euros per share. Merlin offers a dividend yield nearing 3.5%, considered sustainable and with room for growth. Optimism surrounding its data center business is high, with 91.3% of investment firms advising a 'buy'. This positive sentiment could lead to enhanced shareholder returns. Merlin typically distributes dividends in May/June and December.

Other Notable IBEX Companies

Beyond these two leaders, several other IBEX-listed companies offer dividend yields exceeding 4%. However, investors should note that some may lack substantial growth potential or do not command a majority 'buy' recommendation (over 50%). This category includes banks like Sabadell, energy giants Iberdrola and Enagás, and utilities such as Unicaja, Naturgy, and Logista, all recognized for their dividend payouts.

Beyond the IBEX: Neinor Homes and Prosegur Cash

Venturing outside the main index, Neinor Homes and Prosegur Cash present compelling investment cases. Neinor Homes, a real estate developer, boasts a dividend yield exceeding 9% and receives 'buy' recommendations from 89% of analysts. Currently involved in a takeover bid for Aedas, Neinor distributed a gross dividend of 0.93 euros per share on February 12th. The company has approximately 400 million euros earmarked for distribution over 2026 and 2027, equating to roughly 4.12 euros per share in additional dividends. JB Capital forecasts a potential upside of 23.4% for Neinor, reaching 23.80 euros post-successful Aedas acquisition.

Prosegur Cash also offers an attractive dividend yield, projected to exceed 7% for 2026. Analysts anticipate a gross dividend payment of 0.042 euros in December. The company is estimated to have a capital appreciation potential of 29%.

European Dividend Champions

On the broader European stage, within the Euro Stoxx 50 index, Intesa Sanpaolo stands out. It leads the 2026 dividend rankings with a yield close to 7%. The insurance giant AXA follows, offering a 6.5% dividend yield.

The Italian bank, Intesa Sanpaolo, which has surged nearly 200% since 2023 and is trading at all-time highs, still holds an 18% upside potential, targeting 6.74 euros per share, with 67% of analysts recommending 'buy'. Intesa Sanpaolo makes two dividend payments annually. Analysts are confident in its strategic positioning within the current interest rate environment, noting that its private banking, funds, and insurance businesses contribute significantly to its revenue.

AXA's dividend yield stands at 6.5%, with a projected capital appreciation of 22%, aiming for 45.70 euros according to consensus estimates. The insurer enjoys strong backing, with 88% of investment firms recommending its stock. BNP Paribas and JPMorgan are among the optimists, highlighting AXA's attractive valuation, reasonable growth, strong shareholder returns, and comfortable solvency profile. JPMorgan specifically notes that the market may be undervaluing AXA's business quality and capital generation capabilities.

Pharmaceuticals and Infrastructure: Sanofi, Vinci, and Deutsche Telekom

Sanofi, the pharmaceutical major, offers a dividend yield exceeding 5% and an upside potential of over 24%, with an average target price of 96.41 euros. Recent price targets from firms like Intesa Sanpaolo, Oddo, and BNP Paribas range between 100 and 107 euros. Their optimism is based on the strength of Sanofi's clinical pipeline. Deutsche Bank advises patience, expecting key trial results to materialize in 2027. Sanofi typically pays a single annual dividend in May, with this year's expected to be 4.12 euros, a 5% increase year-on-year.

Vinci, a major player in the infrastructure sector, presents a dividend yield above 4% and market upside exceeding 4%. The company makes two dividend payments annually. Analysts have praised the solidity of Vinci's recent financial results, noting net profit growth despite increased taxes in France. The company proposed a dividend per share of 5 euros, exceeding expectations.

Deutsche Telekom is also favored by experts, offering a dividend yield close to 4% and a potential stock price increase of 14%, targeting an average of 36.67 euros. It is considered a top pick in the European telecom sector due to strong prospects in both Europe and the US, where it operates T-Mobile. Deutsche Telekom maintains a policy of distributing 40% to 60% of its profits, with consistent and growing payments.

Ekhbary News Agency