The Ibex 35 is one of the weakest stock market indices in Europe at the moment. However, three stocks exhibit impeccable technical characteristics and could be considered for purchase in the second half of this year. These are Mapfre, Endesa, and Ferrovial, which present a truly compelling technical outlook. These are more than enough reasons to believe that these three stocks still have upside potential and could generate returns on savings in this part of the year.
It's true that these stocks have risen significantly in recent months. But what's truly important is that they can perform just as well in the coming months. They are, after all, moving under a very clear and textbook upward trend , beyond any inevitable price corrections. But rather than selling, they would be more of an opportunity to aggressively enter the domestic equity markets, given the current selling pressure on their shares.
On the other hand, it's also important to remember that these stock market investments offer very generous dividends to their shareholders. With an average return of around 5,5% , they offer higher interest rates than traditional bank products (fixed-term deposits, high-yield savings accounts, corporate bonds, etc.). This also provides additional income to boost your savings account balance. In any case, it's a great business opportunity to invest in the stock market during the final months of the year.
Shopping on the Ibex 35: Mapfre
Its upward trajectory is textbook, following a high-quality upward channel with prospects for continued growth in the coming months. Currently, it's trading between €2,60 and €2,75 , but with a potential upside approaching €3 per share. Furthermore, it's one of the stocks receiving the most recommendations from various financial analysts. With a remarkably stable business model, it could lead small and medium-sized investors to take positions in the near future to generate returns on their capital.
Another key aspect of this insurance company is that it's one of the listed companies offering the best dividend yield, with a return on savings of around 6,5%. This is one of the highest yields in the Spanish stock market and has been consistently high in recent years. It's a stock that's very suitable for investors with a more defensive or conservative profile and for longer holding periods. This provides a dual income stream: through share price appreciation and through dividend interest.
Endesa in search of 27 euros
The electricity company is another of the Spanish stock market's bright spots. With a nearly 40% increase in value over the last ten months, it has entered a technical free-climb pattern. This means it faces no resistance levels and therefore has a clear path to reach €27 per share. It operates in one of the most bullish sectors and acts as a safe haven during the most adverse times for equity markets. Volatility is not one of its main characteristics.
Regarding dividend payouts, it's safe to say that Endesa is the third-ranked company on the Ibex 35 offering the highest dividend yield. However, starting in 2021, it will only allocate 80% of its profits to shareholders. This could negatively impact Endesa's performance in the medium and long term, especially if significant market corrections occur in the coming years, which would reduce its competitiveness in the financial markets. It remains a favorite among equity market analysts.
Ferrovial another buying opportunity
The national construction company is another key source of investment for small and medium-sized investors. It's currently trading within an upward trend, and it will be difficult for it to break out of these price levels. Furthermore, it has been observed that in recent months, buying pressure has clearly outpaced selling pressure. This significant upward rally is encouraging small and medium-sized investors to focus on this Ibex 35 stock. Another aspect to consider going forward is the substantial increase in its profits reflected in the company's earnings reports over the last few quarters.
Conversely, it is the worst of these three Spanish stocks in terms of dividend yield. It offers a return on savings of around 5% through a fixed and guaranteed annual payment, regardless of market conditions. It is included in the investment portfolios of many brokers, both domestic and international, due to the stability of its business and its positive growth prospects for the coming years.
In any case, there are three values ​​that must be kept on the radar to make the capital profitable in the investment and protect oneself from the instability scenarios that will undoubtedly emerge from now on. All of them with a potential for revaluation that is higher than in the other members of the selective index of national equities. Which is at the end of the day what is involved in any of the strategies that we apply in investing in the stock market. Because of the stability in its line of business, as well as the good growth prospects it has for the next few years.