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It is well known that Endesa is one of the most profitable securities in terms of the distribution of its dividends. They offer an interest rate very close to 7% and it is within the top 5 of the selective index of the national variable income, the Ibex 35. But in the last meeting of its governing body, the way of paying its shareholders has changed a bit. With a small reduction that will affect the balance of your savings account. In conclusion, I can conclude that this company will no longer be as profitable as it has been until now.

Within a sector, such as electricity, which is at the forefront of this gratification for small and medium investors. Not only this company, but others like Iberdrola, Enagás, Naturgy or Red Eléctrica Española. With returns on savings ranging from 5% to 8%. As a strategy to create a very stable savings bag in the medium and especially in the long term. Or what is the same, the development of a portfolio of fixed income within the variable as a formula to preserve your capital against other more aggressive investment considerations.

But now with the new change in dividend payments at Endesa, small and medium investors can generate a change in investment strategies. And that may lead the rest of the companies in the sector to take the same measures in the coming months. In the sense that it can be a general tonic among securities listed on the stock markets. As has been recommended by different instances of the economy of the European Union and that are being carried out by other stock market sectors. Like, for example, banking or construction companies.

Endesa: progressive decrease


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The electricity company has paid a dividend of 1.40 euros for each share in 2019. But that will grow in 2020 until it reaches approximately 1.60 euros. In either case, from this date there will be a Change of trend that will harm the interests of small and medium investors. As a result of its investments in green energy and that it will require a greater monetary effort from that moment on. In a plan that Endesa has regulated until 2023 and which has been announced in recent weeks.

Because in effect, already in the year 2021 the dividend of this company will be relaxed until the distribution of 1,40 € and next year it will reach 1.30 euros per share. Whatever the case, the electricity company has shown that they will never fall below these intermediation margins. Otherwise, on the contrary, these profit scales that have been expressed by Endesa could be improved. Everything will depend on the level of benefits that this company obtains from now on. With a decrease of a few tenths in the profitability of this remuneration available to investors.

Will reduce dividends by 30%

Whatever the case, Endesa will cut its 'pay out' to 70% at the end of the period to support its growth profile and is committed to promoting renewables, dedicating itself to 100% until now. To this end, it must be remembered that last year the company already took a turn in the dividend policy that it had established in its last plans, which until then had received a 'pay out' of 100%, to announce a cut to 80 % in 2021. On this occasion, for the year 2022 it will allocate 70% of its profit to its shareholders.

In updating its strategic plan sent to the National Securities Market Commission (CNMV), the group indicates that this year it will pay a minimum dividend of 1.4 euros gross per share, which in 2020 will reach 1.6 euros. Meanwhile, shareholder remuneration in 2021 will be a minimum of 1.4 euros gross per share and in 2022 it will amount to 1.3 euros per title. This newsworthy fact can surely change the strategy that small and medium investors can develop from now on. Even in some cases, with transfers to other securities that have increased this shareholder remuneration.

New situation for investors

Endesa estimates an average annual growth in the period of its net profit of about 8 %, compared to 7 % of the previous period, going from 1,500 million euros for this year to a profit of 1,900 million euros in 2022. In what is conformed as a change with respect to the policies that the company maintained until now. Where the total of its earnings, the 100%, went to the remuneration of all its investors. And it seems that this trend has ended, at least in the short and medium term. With less liquidity in your savings account and that can influence the development of our next portfolio of securities in the medium and long term.

While on the other hand, it is also necessary to influence the fact that the new 'roadmap' thus includes a constant growth in the profits of the energy company, which foresees a net profit around 1.7 billion euros in 2020. Where one of the keys will consist of the benefits generated by the electricity company from now on. Therefore, it will be necessary to be very attentive to the business results that are made public each quarter and that can give the guidelines for action of small and medium investors.

Although Endesa's technical scenario was excellent, it has been even more so since a few weeks ago when it entered the free rise figure. It is the most beneficial of all since it has no resistance ahead and therefore its appreciation has no limits of any kind. Another good thing is what can happen to the value and there will be corrections in its price as a result of the latest rises and that have led the value to trade very close to 25 euros per share.

Boost to the electric car


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Endesa X will install two new ultra-fast charging equipment through pantographs for electric buses on line H16 in Barcelona, ​​which connects the Forum with the Free Zone. The objective is to ensure the load of the 22 TMB buses that today circulate on this metropolitan line and provide a better service to passengers. With less liquidity in your savings account and that can influence the development of our next portfolio of securities in the medium and long term.

At this time, line H16 already has an electric charging station at each end of the line (Zona Franca-Cisell and UPC-Campus Diagonal Besòs), which were also installed by Endesa three years ago and were pioneers in Spain and Europe. With the two new pantographs, which will also be installed at the beginning and at the end of the 12-kilometer route, the recharging infrastructure will be strengthened in line with the largest offer on this line, which has gone from having 20 standard units in 2014, when launched with the current route, the current 22 was articulated. As one of its main hallmarks compared to its competitors.

Results in line with those expected

Endesa's results for the first nine months of the year have followed the good line set by those presented up to June, which makes it possible to anticipate the achievement of the 2019 objectives communicated by the company to the market within the framework of its Strategic Plan. The good administration of the liberalized market, in a very complicated environment, both in the electricity and gas businesses, continues to be the key factor behind these good results, to which the stability of the regulated market and the success in cost have been added. containment effort.

On the other hand, it should be noted that there has been a significant drop in the demand for electricity during the first nine months of the year (-3% in adjusted terms) as a result of the high temperatures of the period and the impact of the slowdown in electricity . economy on the energy consumption of large companies. At the same time, there has been an increase in the price of CO2 rights, a significant drop in the price of gas and a lower availability of hydroelectric generation, which has led to coal plants having suffered a significant lack of competitiveness in market coverage. demand since, consequently, they have accentuated their exclusion from it.

Therefore, and given the clear absence of prospects for improvement in the future, the company announced in September the decision to promote the discontinuity of the activity of these plants and, consequently, carry out an accounting impairment of their value that, in conclusion, amounted to 1,398 million euros with an impact on the net result of 1,052 million euros.

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