Buy BBVA For Its High-Dividend Yield Of 6.75%

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Labutes IR
2.28K Followers

Summary

  • BBVA has strong fundamentals and has reported strong growth in recent quarters.
  • While rising provisions are expected in the coming quarters, they aren’t a major threat for the bank’s capital return policy.
  • BBVA offers an attractive dividend yield and an undemanding valuation.

Banco Bilbao Vizcaya Argentaria or BBVA in Tortosa, Spain

J2R/iStock Editorial via Getty Images

BBVA (NYSE:BBVA) remains an attractive income play within the European banking sector, due to a high-dividend yield and a relatively cheap valuation considering its growth profile.

Background

As I've analyzed in a previous article, I'm

2022

Share price (Bloomberg)

2022

Revenue (BBVA)

This article was written by

Labutes IR profile picture
2.28K Followers
Labutes IR is an Fund Manager specialized in the financial sector, with more than 15 years' of experience in the financial markets. Under my coverage is mainly the Financial sector, including Banks, Insurance, Real Estate and FinTechs both in the European and U.S. markets. For my personal investments I also invest in 'Income' stocks, as I'm building a portfolio for retirement, with the goal of being able to retire in 20 years.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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