Ibex 35:The European King of the dividend vs Bonds in 2025
The dividend yield of the IBEX 35 will reach 5.05% in 2025, according to estimates, doubling the current yield of 12-month Treasury Bills, which stands at 2.53%. This index has exceeded 5% at various points in 2024, marking the widest gap against the EUROSTOXX in a decade. Currently, the Ibex dividend is at 4.5%, and with every 250 point drop in the index, the yield increases by one tenth, reflecting its attractiveness to investors.
Comparison with other European indexes
Within the European panorama, the IBEX 35 is the index with the second highest dividend yield, second only to the Italian FTSE Mib. In contrast, other benchmarks such as the FTSE 100 UK show a lower yield of around 4.03%, while indices such as the STOXX 600, EUROSTOXX 50, DAX40 and CAC40 offer between 3.2% and 3.6% for the coming year. The Spanish market is also known for its generous dividend policy, having reached a peak in distribution in 2023, led by key sectors such as banking and telecommunications.
Outlook for 2025
Looking ahead to 2025, the Ibex is expected to maintain this outperformance, supported by dividends from strategic sectors, although corporate earnings growth could slow down. Analysts estimate a moderate increase of 4% in the profits of the companies in the index, which ensures a competitive return with respect to other European and American benchmarks.
Current technical analysis
We are witnessing a recovery in the index to the 11634 points zone, with the checkpoint zone being the value of November 5 around 11838 points closest to the highs zone. The RSI shows a 59.05% of overbought which could be representing that the current value has a possible increase in value. If we look at the last delta zone we can see that it is located above 11715 points. The current trend seems to be to evolve upwards, if the results of its companies continue to accompany, because it is one of the most defensive indexes in Europe.
Ion Jauregui - Analyst ActivTrades
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Comparison with other European indexes
Within the European panorama, the IBEX 35 is the index with the second highest dividend yield, second only to the Italian FTSE Mib. In contrast, other benchmarks such as the FTSE 100 UK show a lower yield of around 4.03%, while indices such as the STOXX 600, EUROSTOXX 50, DAX40 and CAC40 offer between 3.2% and 3.6% for the coming year. The Spanish market is also known for its generous dividend policy, having reached a peak in distribution in 2023, led by key sectors such as banking and telecommunications.
Outlook for 2025
Looking ahead to 2025, the Ibex is expected to maintain this outperformance, supported by dividends from strategic sectors, although corporate earnings growth could slow down. Analysts estimate a moderate increase of 4% in the profits of the companies in the index, which ensures a competitive return with respect to other European and American benchmarks.
Current technical analysis
We are witnessing a recovery in the index to the 11634 points zone, with the checkpoint zone being the value of November 5 around 11838 points closest to the highs zone. The RSI shows a 59.05% of overbought which could be representing that the current value has a possible increase in value. If we look at the last delta zone we can see that it is located above 11715 points. The current trend seems to be to evolve upwards, if the results of its companies continue to accompany, because it is one of the most defensive indexes in Europe.
Ion Jauregui - Analyst ActivTrades
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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