Banco Santander will pay dividends on November 1 with a yield of 2.2%.

Banco Santander’s dividend payment date, one of the most anticipated in the Ibex 35, approaches at the end of October as the window to move to the distribution of enterprise profits arrives. It won’t close until October 30th..

He Banco Santander will give away 0.1 euros gross per share. This dividend, paid in cash based on the current year’s results, represents a 23% increase in the enterprise compared to the same payment made in the previous year and represents a yield of close to 2.2% at current prices.

This is not the only way a Santander shareholder can participate in the company’s profits. Half of the company’s earnings due in the first quarter of 2025 will be distributed through the aforementioned dividend, while the other half will be paid through the share repurchase program announced in September. In fact, the essence I would have already bought more than 40% shares planned by the company for the end of this week at an average price of 4.49 euros per share, which will amount to 630 million euros. This share buyback plus the first-half dividend will allow Banco Santander to distribute €3.050 million. Absent the close of the third quarter of the year, the entity is not expected to make new dividend announcements before the close of fiscal year 2024 and to deliver them in full during the first months of next year.

The close of the third quarter of 2024 will be key for the European financial sector. With eurozone monetary policy tending to lower benchmark interest rates, banks’ results will begin to demonstrate an environment of lower funding costs. Renta 4 analyst Nuria Alvarez defends the listing of Spanish companies They won’t bring much news on their accounts from July to September based on the volume of loans for the summer period. “However, the third quarter will be important as it should mark the beginning of a decline in interest margins,” the expert commented.

For now, Banco Santander is not the most optimistic company in the Ibex 35 year, given that its share grew by 20% compared to 48% for CaixaBank or 67% for Banco Sabadell, so its dividend yield is not below average thanks to stock market performance. As of the end of the week, Banco Santander’s annual dividend yield was approaching 4%, compared with Unicaja’s 4.6%, Banco Sabadell’s 6% or Bankinter’s 6.5%. Thus, it is CaixaBank and BBVA that lead the way in terms of distributed earnings relative to the current trading price, exceeding 7%, according to data compiled by Bloomberg. The next payment from Ibex 35 to CaixaBank will not arrive until the second week of November, although it has not yet been confirmed.

According to market consensus compiled by FactSet, now is the time to take a position in Banco Santander, a company that has been a Top Buy since May 2023. The average target price of analyst firms is at 5.65 euros, which means a trip 22% more expensive..