BBVA fits my dividend strategy, with some caveats. The 4.3% yield and 47% payout provide a reasonable margin to sustain the estimated €0.97 dividend, while EPS is expected to grow by 18.2% in 2026 and 12.9% in 2027. In addition, the dividend has risen from €0.47 in 2023 to €0.73 in 2025. However, the track record includes cuts between 2019 and 2021, and debt-to-equity increased by 32.0%, to 1.93. The estimated P/E of 10.9x in 2026 and 9.7x in 2027 is attractive, although the consensus is Hold and the median upside is only 7.1%. I am buying a small position because I already have exposure to Bankinter and CaixaBank.
Translated automatically from the original in Spanish.