IBEX 35: Three Banking Stocks for Higher Dividends in 2023

The TipRanks Best Dividend Stocks tool is a perfect way to pick the high dividends-paying companies in a particular market. Using this tool, we have shortlisted three banking stocks from the Spanish market: CaixaBank (ES:CABK), Banco de Sabadell (ES:SAB), and Banco Bilbao Vizcaya Argentaria (ES:BBVA).

Let’s see what’s working for these stocks.

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)

BBVA is among the leading Spanish financial institutions, providing banking and asset management services to around 80 million customers.

The bank recently reported its full-year results for 2022 with record profits and improved guidance for 2023. The bank’s solid performance provides scope for higher returns for its shareholders.

The total shareholder distribution for 2022 was €0.50 per share, representing 47% of net attributable profits. The net attributable profit was €6.6 billion for 2022, which was 30% higher than the previous year. The cash dividend for the year was €0.43 per share, which is almost 40% higher than that of 2021.

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What is the Target Price for BBVA Stock?

According to TipRanks, BBVA stock has a Moderate Buy rating, based on six Buy and six Hold recommendations.

The BBVA target price is €7.75, which is 6.85% higher than the current price level.

Banco de Sabadell, S.A.

Banco de Sabadell is a multinational financial institution from Spain, which provides personal and business banking, investments, mortgages, insurance services, and more.

The bank’s stock rallied and gained 86% in the last six months, driven by higher interest rates and strong operational performance. The company’s net profits jumped 62% to €859 million on a year-over-year basis in 2022.

The total dividend for 2022 was €0.04 per share, showing an increase of 33% over the previous year. The total payout ratio has been increased to 50%, including dividends and share buybacks.

Banco Sabadell Stock Price Forecast

According to TipRanks, SAB stock has a Strong Buy rating based on three Buy and one Hold recommendations.

The average price forecast is €1.34, which is 8.6% higher than the current price level.

CaixaBank, S.A.

CaixaBank is a Spanish bank engaged in retail, business, premier, and international banking services. The bank caters to more than 20 million customers in Spain and Portugal.

Last month, the bank reported higher profits in its 2022 annual results and an upbeat outlook for 2023. The net interest income (NII) for the fourth quarter increased by 33% to €2.07 billion, as compared to 2021. The bank expects its NII to further grow by 30% in 2023, along with higher cost pressure.

Speaking of dividends, the bank posted a 58% growth in its gross cash dividends of €0.23 per share in 2022. The bank is targeting a payout ratio between 50-60% for 2023.

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Is CaixaBank a Buy?

CABK stock has a Moderate Buy rating on TipRanks, based on five Buy, three Hold, and one Sell recommendations.

The average target price is €4.51, which shows a growth of 12.67% on the current price level.


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These three banking stocks have enjoyed a great 2022 riding on higher interest income.

After the solid results from these banks, analysts are bullish on another year of profits, stock growth, and higher dividend payments. These banking stocks could be great additions for investors to build a good dividend portfolio.