Atresmedia and Mediaset, with dividends from 10%

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The national communication media companies, Atresmedia and Mediaset, are the ones that are currently distributing the most generous dividend on Spanish equities ”]. With an annual profitability very close to the 10% levels and that are at the top of the Spanish list. Above sectors that are characterized by their high remuneration, such as electricity or energy companies that range between 5% and 7%. From this dynamic, through investments in Atresmedia and Mediaset, it is possible to obtain a fixed and guaranteed income every year, which is very interesting.

In particular, if it is compared with the interest rate generated from savings banking products or fixed income derivatives that barely exceed 1%. As a result of lowering the price of money por el Banco Central Europeo (BCE). Y eso ha llevado a que la oferta monetaria esté al 0% hoy en día. Dicho de otra forma, en mínimos históricos desde hace varios años en una strategy comunitaria para mejorar el crecimiento económico en la zona euro.

Well, these are two securities that can be very interesting to hire from now on due to the profitability of their dividends. Beyond other technical considerations and also from the point of view of its fundamental principles. Even though its evolution in the equity markets in recent months has not been very satisfactory for the interests of small and medium investors. Due to the depreciation of their prices and that they have been placed at very low levels. Here are the estimates of some analysts and financial broker.

Atresmedia and Mediaset: business

One of the problems faced by these two companies that are listed on the Spanish continuous market are the doubts that their business lines present. In particular, with the appearance of some pay TV channels and the most innovative proposals being launched by other audiovisual media. In this general environment, these securities are being penalized by investment agents. Even though there is also some other indication that they could have formed a floor in the training of their prices.

On the other hand, it should be noted that these two values of Spanish equities are very cyclical. This in fact means that they develop a better performance than the rest in the bullish scenarios of the bags. While, on the contrary, in recessive periods they tend to be worse than in other sectors. From this point of view, they can be considered as more volatile values since they present greater differences between their maximum and minimum prices. Hence, very beneficial for business operations.

Bounce in your valuation

After having lowered these values to unknown levels In recent years there has been a rebound in the configuration of their prices. Even though it can be a bearish trap in which small and medium investors can fall. Because at the end of the day everything will depend on the direction taken by the national equity markets. It will be the key to understanding if it is the right time to have access to your positions or, on the contrary, stay out of any investment operation.

On the other hand, it cannot be forgotten that they are companies linked to advertising business and this is undoubtedly very changeable. To the point that it would be one of the big losers in the face of a next economic recession. What would influence a drop in the price in these two media that are listed on the Stock Market. Therefore, prudence must be the common denominator by which their actions in the equity markets are governed. Because in principle its revaluation potential is really very high, but also its level of corrections. Above what is shown in other stock exchanges.

The key is commercial promotion

A good part of the income of Atresmedia and Mediaset come from commercial promotion. In this regard, some reports have recently been made public indicating that these revenues will decline significantly from next year. This would be reason more than enough to forget about these two proposals on the Stock Market for a long time. Because it may give us more of a negative surprise from now on. Beyond other types of considerations in the investment strategy.

In addition, it must be appreciated that any change in the concession of channels on Spanish television can have a very relevant direct impact. To the point that it can make your shares fall or appreciate in national markets. In a sector characterized by being very changeable And that largely depends on the economic growth of the country. Where the acquisition of television rights can significantly vary prices, both in Atresmedia and in Mediaset. This aspect cannot be forgotten if you need to include them in your next investment portfolio.

Atresmedia at levels of 4 euros

This means of communication has its support at 4 euros per share. If it is exceeded, it will be necessary to undo positions with special speed since the falls could be very intense from that precise moment. From this point of view, you will have no choice but to carefully monitor your prices in order to develop the most correct investment strategy. While if, on the contrary, he managed to overcome the barrier that has 5 euros it can be an excellent entry level to make your savings profitable with some security. Something that has not yet been achieved, even though we will still have to wait a few more trading sessions.

While, on the contrary, its competitor Mediaset is listed in a more extensive variety that goes from 7 to 9 euros per share. It would have to choose to exceed these levels in its price so that its trend is clearly established. In other words, bullish or bearish depending on the movements that are taken. Despite the interest that may be on the part of small and medium investors to take positions due to the attractiveness of its high dividends. And from which a fixed income portfolio can be configured within the variable. With a remuneration that can be achieved in few financial instruments.

A sector with few recommendations

Sea cual sea el caso, no es uno de los segmentos preferidos por los analistas financieros que ven pocas posibilidades de negocio con la apertura de puestos. Si no, por el contrario, advierten de los riesgos en estas operaciones y que en general están más a favor de comercializar que de comprar. Pese a las serias subidas de sus precios que puedan desarrollarse de ahora en más. Que servirían fundamentalmente para abandonar las posiciones en estos dos valores para protect money intended for investment. At least in investment strategies focused on the short term and that require greater skill in retail investors.

Today, their greatest attraction lies in the high dividend they distribute to their shareholders. But with the obvious risk of losing it in the quotation of its prices. Especially if they knock down supports of some importance, like those mentioned previously. Among other reasons, because the selling pressure it would be very strong in the financial markets. With the real opportunity to reach annual minimums in its valuation on the stock market. Something that could wonderfully happen in the last leg of this current year.

Results of both companies

Atresmedia it has obtained excellent results in the first quarter of the year, its best figure in this period in 11 years. The company's net profit grew by + 36.6% to 28.7 million euros, the highest in a first quarter since 2008. Ebitda also increased to 45.1 million euros, which represents a growth of the + 35.8% compared to 2018 and becomes the highest in a first quarter since 2008, with a margin over net income of 17.5%, the highest in the first three months of the year since 2008.

Por su parte, su competidor Mediaset España ha cerrado 2017 con su mayor dato económico desde 2008. El potencial comercial de la empresa, líder en inversión publicitaria desde 2004, y la administración de sus recursos, le han llevado a aumentar su beneficio neto un 15,5% respecto a hasta 2016 para lograr los 197,5 millones de euros. El ingreso publicitario bruto de sus propios medios ha crecido entre enero y diciembre de 2017 un 1,6% hasta los 946,4 millones de euros, pese a no haber tenido los derechos de emisión de ningún gran event deportivo en 2017, como ocurrió en 2016 con la Eurocup de Fútbol. Incluyendo marketing publicitario de terceros (23,3 millones de euros) y comisiones, los ingresos publicitarios netos fueron de 928,7 millones de euros. Entre otros motivos, debido a que el selling pressure it would be very strong in the financial markets. With the real opportunity to reach annual minimums in its valuation on the stock market.